Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-01-27

plishment; that the bank was IN most eAoelien'
condition; that its circulation was less than It BAD
been for years; the condition Of the country pros
porous; the amount Of the staple productions large
the prices good, and new banks going into opera
ton; that It's currency Withdrawn, could be sup
Piled BY the new banks, as the currency Of the Q.
S. Bank was replaced by the Union and Planters
Banks and the citizens furnished the means to pay
the debt due the State Bank, without embarrass-
ment
He said, however if the Legislature did not think
it to be sound public policy to wind up the bank then
and in that event, he recommended that measures
be taken to strengthen the institution, by giving to
the parent bank the control Of the branches, as
James K. Polk and his appOintee, VIM. NiehOl, had
done before. He also recommended the increase Of
the salaries Of branch bank presidents, and other
measures to give efficiency and vigilance to its al
mnisiration. The Legislature declined, in The most
decisive manner to put the bank in liquidation, as
previous legislatures had done It took the opposite
course, by the adoption Of measures to strengthen
the institution to witt The increase Of the salaries
Of the branch presidents, and the increase Of its
capital stock by authorized sale Of Planters and
Union Bank stock, about 100000, so as to enable
it to contest with vgOr and efficiency, the attacks Of
individual banks springing up around it. The same
Legislature increased the debt Of the State, and en-
Iarged the extent of its liabilities, and thus sur
rounded the bank with heavy duties and created a
greater necessity for Us continued existence and efesa
action, as a State financial agent.
This action Of the General Assembly must be re-
garded as most decisive determination Of the pub
lie will in accordance with the action Of previous
Legislatures. After a lapse of two years, We find
the surrounding circumstances much changed. The
new banks chartered have not met with the popular
approbation-the circulation Of these institutions be-
ing most inferior to that of the State bank and local
the price of produce not good, and sales stag
nant st any price-the whole commercial world en-
/ berrassed-a large portion Of the banks IN sus-
pepded state-the amount of the circulation much
reduced say from eight to four millions, and much
of it deprecated in value; the internal improve
ment system laboring under embarrassments never
before existing and new and heavier duties imposed
on the bark to protect the credit and sustain the
interest ana honorof the State ItsliqudatiOn at this
time. would IN all human probability prove ruinOus
to the credit Of the State severely injurious to the
debtor interest and false to the successful iquida-
J OF
time in twenty years. since the origin Of this bank,
when it could not have been put in Liquidation with
less injury to the people, and less danger to- our
| financial arrangements. There never was time
when strong monied institution was so much
needed as now, backed by the credit Of the State,
and sustained By President with national rePu-
tation. The bank has just paid $4,000 Of the
mstured bonds of the State, without the sale Of
State stocks, $4,000 interest on State bonds,
$4,000 for 8 railroad company, and saved the State
endorsement from dishonor. 1t has furnished the
exchange for the whole Of the railroad companies to
pay their interest and taken their local paper. The
payment Of the interest was so much doubted that
Tennessee Bonds had deprecated, and when pay
ment was effected, they rose from eighty to ninety;
and it is believed in intelligent circles, that State
bonds will rise to cash value; and thus give most
important aid to our langushing system Of railroad
enterprises.
It is hard to escape the conclusion, that the State
would have been dshonOred, on the first day OF
January last if this bank had not existed, and the
whole fabric of public and private credit, been
most sigually injured. Under these circumstances,
the sagaeous public officer, fully aware Of the con-
dition Of things at home and Of the events trans
piring in the commercial world abroad, declares to
the General Assembly, that though his opinion
expressed two years ago. against the policy of State
banking has not been changed, get for the present,
the continuation of the iustrumentaty of the State
Bank to furnish exchanges effect loans, If necessa-
ry. and make other mOnied arrangements, which
may become necessary, and to furnish circulating
medium, is Indispensable; and that State officers
and railroad officers could not certainly and success
fully uphold the ramifed machinery which 8 series
of successive legislatures have wrought out
And now, conceding to those who entertain diff
fereut opinion the merit of sincere conviction, 1t is
respectfully asked if a man of Col. JOhnsOn's e1pe-
rience, extending through period Of more than
thirty years Of active public service, in which be
managed with great ability the complicated concerns
of the Post-ofice Department, with q mind unim-
paired, as the vigor of his written productions
demonstrate, with patriotism uudOubted, with no
motive to lead him astray and with opinions unfa-
v5rable to the existence Of this institution under
other circumstances-f, after four years Of service
Ia this bank. has expressed his conviction that it
cannot be with safety dispensed with, at this He'
and under ersting circumstances, without putting in
jeopardy the best interests Of the people Of the
ate, should not those who have less experience,
less ability and less information, as to the present
necessity Of such an institution, pause before they
strike down this barrier Of public credit IN the
midst Of a monetary crisis
The suspended debt has been greatly reduced
during the administration Of Col. Johnson, whoss
srrsus rgil7ucs as COLLECTORS psH EHOwH 1t is now
less than S5OOOOO It is believed by the officers Of
the bank that one thousand dollars Of bad debt has
not been created in four years. This is astonish-
ing and speaks volumes in favor Of the great skill
and vigilance of its directory and officers
The net profits of this bank since its origin in
1887. has been 100000, and in the last six
months it has made $50, 600. It must be conceded
that no bank in the State has fulfilled the purposes
! Of its creation so nearly as this has.
| The author of this communication takes this Oc-
cssion to say in conclusion that in his judgment the
Bank Of Tennessee has not always been managed
with the vigilance and ability that it has in the last
four years-that it is not likely to be in the future
/ that our finances and currency should be put IN
situation so as to enable the Legislature to dispense
with it at any time-hst its great danger, is that It
may fap under the expenses and Encouragement
of its branches, and by the increase of branches
that the state of our finances does not reqnire any
increase Of its capital stOck-tbat there is no such
Indebtedness, general and severe, as to call for an
exercise Of State credit, as measure Of individual
relief and that the issuance Of State bonds not
heretofore authorized, would weaken the public
credit and lower the value Of public securities,
and retard the successful and prompt execution Of
( our system Of internal improvements. Il.
/ Gn- A Nioaraguan, who had been sent as spy
from Fort San Carlos down the river San Juan, and