Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-13

Of their Inheritance TO gamble ana speculate uPOu'
To encourage the idea that "a public debt is pub
lie blessing" To make the people look to govern
ment for relief All all of which, sir, are contrary
to the principles have ever advocated, and contrary
to what have been taught was the theory OF our
Institutions But in excuse OF the proposltlon' the
honorable Senators from Williamson, and warren,
and others the eudOrsers and advocates OF this oil
assume that the Bank Of Tennessee has been making
large profits to the State. Right here, take issue
with them and assert, Mr. Speaker, that that institu
tion never has been and never will become source
of proft 10 the State Of Tennessee.
Mr. McCONNICO. present to the gentleman, the
repor prepared by the President Of the State Bank
and refer him 10 the 10Th page.
Mr. WHITTHORNE. Precisely so, Mr. Speaker.
If the gentleman viii take the trouble to add up the
assumed profits, and then reckon six per cent in
erest upon the capital of the bank he will find that
the bank has not made profit. And yet, you pro
pose to issue bonds running with six per cent in
teres to place into bank that after existence Of
twenty years has failed to make that per cent
But these bonds, proposed to be issued by this
hill, 10 be sold at par where, when and to whom
Il is notorious that your State bonds are selling at
discount and if yOnr bill is carried out in good faith,
they will not be sold until the "gOOd lime I" hath
come, and then manifestly there Is no reason,
for a sale Of your bonds But if the words of your
bill are evaded and they are sold at discount who
pays this share this acknowledgements Of the State
Aud this discount is to be borne by them, for the
purpose of increasing the capital OF bank, that
cannot TO day realize her resources and pay six per
cent upon her original capital
/ believe the honorable Cave johnson, as far as
incorrupubiliiy and honesty is concerned, to be
above reproach-as pure and as honorable man, as
ever lived ia Tennessee-and l ask gentlemen, be-
fore they consent to vote for the issuance OF these
bonds TO turn back and listen to what he said two
wears ago. You remember that the object and in
tenton of creating the Bank Of Tennessee, was that
Il, Hat, 5rrhf hou
which there could be safely invested, the Internal
Improvement and Common School funds Of the
State. The Bank was an investment OF State 1undsi
and it was thought that it might be made Just as
safe an investment State securities. But 10, ana
behold the honorable Cave johnson, and two sue
oessve Governors of the State unite in saying that
the Bank has failed in the object of its creation
appeal to democratic Senators upon this floor and
mplore them to listen to him, who has had now for
so long time, the control Of this institution. de
says:
1.-THE Bank of Tennessee was established for the
purpose Of creating "a fund for Internal Improve
ments, and to aid IN the establishment Of system
Of education.
The operations of the Bank in few years seem
to have convinced the General Assembly Of the tn
prachcaJIity Of accomplishing the great OBJECTS Of els
crsauoa under the organization which had been
given it; and an act was passed in 1S49 directing
the profits of the Bank to be paid into the Treasury
and the payment of the interest on the bonds OF the
State and the School Fund to be made by the Treas
ury; by that time nearly a million Of dollars had
been taken from the capital by appropriations OF
the Legislature and the debts lost by the bank BY
the act of the Sd March, 1854, the annual profits Of
the Bank were directed to be applied to supply the
deficiency Of the capital OcCasiOned by the bad
debts So that the bank cannot be regarded at this
time in any other light than a financial PROJECT to
aid the Treasury of the State. 1t can scarcely De
doubted that an Investment of The School funds, compo-
f6 5fgl qf h.
State bearing an interest Of sE per cent 1Coutd hare
been more rise ard jUcOus disposition Of the than
~ the Stack Of any corporation yielding nomiHaLy too
or three per cent more; ard especially IN one when
was subject, from its organization TO all the casual
ties arising from the change Of its officers every Few
years as the one or the other party prevailed in our
elections and to the carelessness, negligence, or
frauds Of those controlling it. The other portion OF
its capital belonging to the State, million Of dol
ars, was obtained by issuing bonds Of the state,
bearing six per cent interest, aud upon Whlch the
State now pays interest, and will be compelled to
nav whether the bank yields profit or not.
From the operations Of the bank heretofore,
there is strong reason TO apprehend that losses Of
similar character may occur hereafter, aud that
the profits by he time the charter expires, may be
required reinstate the capital as now required by
the act Of 1854 Under such circumstances 10outd
seem 10 be the true policy Of the State to pay the million
dollars for the 5oHds Of the State UhiLst It hes the
means 7der The control Of the bank, and 70 i1Uest the
School funds IN other bonds Of the State, bearing tn
fres and thus AVOID the haz4rds incident TO borrowing
1onsg 10 JsreI9qHef under the c0ar0tc aug corporate
J1Hy The PUBLIC Is SELDOM BENEFITED BIZ SUCH
FINANCIAL SCHEMES.
In other words, the honorable Cave johnson says
to YOU and me, with reference to your bank credit
and bonds that stock securities at six per cent is
better instalment than capital IN the Bank OF
Tennessee. And yet, in the face OF an expression
of opinion so distinct this, We are asked to-day
to pledge the credit Of the State by the issuance Of
bonds Sir has any body asked this at the hands
Of the Legislature? Has there been memorial
from a single district in the State? If there has,
have not heard Of it. Not one single petition on
the subject Of increasing the capital stock Of the
State Bank, or any other bank. Yet we are told
that there is distress and that distress will
come upon the people, and their property will be
sacrificed and destroyed, unless this relief is
granted Whose is the voice that comes up with
This demand? 1t is not the voice Of the people. l
will venture to say that II you could trace to Its
prOper source this application for an increase of
banking capital, you would find that 1t proceeds |
from him who has been specializing, trading and
gambling in the property and products OF the |
country. This proposition comes not from the hard
listed ye0mgury of the country from those who |
will eventually have these bonds to pay. We are |
very apt-when surrounded with troubles, and par
ties come forward proposing relief-no matter how |
specious or unreasonable the means-means which, |
under ordinary circumstances, we would instantly |
reiect-to seize upon anything that promises relief,
without stopping inquire what will be Its egiti-
mate and ultimate effects.
Mr. Speaker, l dislike at the present stage OF the |
bill to occupy the attention Of the Senate, but |
proceed, as hurriedly as l can, with the reasons |
which compel me to vote against this bill.
affirm, sir that this bill, whilst it increases the
State Indebtedness, is not for the relief Of the |
people To illustrate: Who is it that gets accom-.
modati0us from your banks? Is 1t the people = /
Why. look at the memorials upon your table /
from the county Of --, complaining of the /
Sparta branch, that the people do not receive, of |
discounts, the amount that they are emitted to by
lEw It's the few who the favored Of the banks.
It is frankly stated by the Senator from Warren,
thatit is the trading and commercial men who need |
this increase Of bank capital 1t is for their
nieuce and accommodation; but yet, sir, for the |
redemption Of the bonds you lssue-tOr the man
ugement and application Of their proceeds, you
mortgage the property Of the whole people. Sir,
portion of the world seeks, not by toll, but by cum
uIurly devised schemes to live off Of the labor of
others Honest industry, by the 'sWeat Of its brow
obtaining its reward asks protection only IN this,
that YOU will not assist him who seeks these facili
ties to live and fatten upon ats efforts Sir, re-
s7ect the trading and commercial classes of our
fellow citizens and when they are the instruments
of exchange of products they are entitled to favor
hut that class that are breaJhed into existence by
banks 20 become, as is too frequently the case, mo-
nopUIists and gamblers in the products and proper
ty Of the country, are not entitled TO our favor
These are the men who, l will venture, most do
clanor for projects like the we have under
sideration l ask you, not to take the faith Of the
people and pledge It to purposes like these.
Again, Mr. Speaker: l remember, IN the humble
par bore in the last canvass, that arraigned the
nominee of the American party, the honorable Mr.
Hatton-f0r what termed, his disregard Of the pub
lie credit and faith as evidenced in his disposition
as shown in his legislative career, to grant and issue
the bonds Of the State. remember, that all parties
pledged themselves against any increase Of State
Indebtedness. l remember that whilst the Ameri-
can party held out the distribution scheme, as an
escape from what both parties admitted to be, q
heavy liability hanging over the State that we
of the democratic parry preached retrenchment, re-
form and reduction in me Indebtedness Of the State
Who will deny that this Is true alike Of all of US on
this door With these positions, and these pledges
fully before us l ask you, Mr. Speaker if it is for
GOTTEN that Gov johnson, Gov Harris, and the Hon
0rable Cave johnson IN his last report, two years
since. recommended the liquidation of the Bank of
Tennessee; audif not forgotten, what all powerful
reason can to-day be assigned to induce us to in
crease the Indebtedness OF the State, and at the
same ame in etFec re-charter thel Bank of Tonnes
see. 1t is multiplying Inconsistencies, and forfeit
ing pledges, that must surely bring It's day of reck-