Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-07-27
NFhNp he Memphis Bulletin, July %.
TheA state and Stack Hanks


The Legislation of the last General assem-
bly, of this State. however objectionablein some
aspects, was substantially RIGHT. Its end and
aim was the reformation of the system of Bank
ing in Tennessee. 1t contemplated the
demption of all notes at the counters from
whence they are issued, and the putting into
liquidation Of all Banks which failed thus to
render their issues convertible into the precious
metals, at the will of the holder. The effort
was for restoration of the good old fashioned.
honest and useful plan of banking. and the
gradual abolition of the modern, dishonest,
fnanciering system of paper money, which,
in these latter days, has proven such a curse to
the country
The Bank of Tennessee being absolutely
under the control of the Legislature was sub
ject to these provisions. and obliged to con-
form with them. The Stock Banks were shell
tered behind their chartered privileges, and
had the power to disregard them. The pro-
priety and moral right of their doing so. is an
other matter, about which we think there can
be but little difference of opinion. They
should have frankly accepted and acted in ac-
cordance with them, regardless of the bad taste
OF those features of the law which NAV be
made to bear the Interpretation of foregone
suspicion of the fidelity of bank officers as a
class. Their having done Misunderstanding
neither put themselves by acceptance of the
proposed amendments. under the indisputable
legal obligation to reform their system of is
sue and redemption, nor voluntarily adopted
the desired reform justfies the foresight of
the later legislation which exempted the State
Bank from the most stringent requirements of
the Bank Law, unless the Stock Banks should
bring themselves up TO the same standard.
1t VIII not do, therefore, to pour out the
whole volume of odium created on account of
the incOnvertible character of our currency,
upon the Bank of Tennessee. for not :: resum-
ing" specie payments with the Stock Banks
before the time fixed by law. Undeniably it
is a most discreditable thing that the Bank of
the great State of Tennessee should continue
TO do business upon currency not redeemable
in coin when demanded. But il is also equal
ly undenlable that 1t is very discreditable
thing for the old and well established Stock
Banks of the same great cOmmOnwealth-in-
stitutions that have grown fat and strong upon
the nOurishment Of the peoples industry
should shrk convertibilty of their notes into
coin. at the will of the holder who has taken
them at their nominal value, by issuing them
at one counter, and redeentung them only at an
other counter. three four hundred miles off
at the other end of the State To have com
PEELED the State Bank into the Z" counter noten
system and concurrent specie payments. while
they were still in the enjoyment of the privil-
eyes of the game of . hide and seek" at which
experience has made them such adopts would
them. But it maytoe questioned whether it
would be quite so well for the people of Ten
nessee, who have given their public faith for
the future payment of one million of dollars
to furnish the capital of the State Bank, to
thus putt throat into so convenient position
to be thrOttled aud choked within an inch of
its life, whenever those amiable and patriotic
institutions, the Stock Banks, might take the
fancy to squeeze it, as they have sometimes
squeezed the public. 1t is at least question
able; and the future may yet reveal that the
''sOber second thought of the public mind
will acquit its venerable President of any
very grave crime, in not being tdunted into do
ing what the representatives of the people
thought proper to take precautions against.
More especially is such likely to be the ulti-
mate verdict, when it is remembered that al
though the whole three Banks suspended, "a
they averred Only in order to "releven the
people from the cXcruclatiDg pressure of the
revulsion of 81, the Bank of Tennessee was
the only one OF them from which there is any
tradition eXtant OF relief having been afforded
to " outsiders" The general recollection is
rather, that the Stock Banks were somewhat
tight" in their operations of squeezing from
their debtors every dollar they conld raise
The great obstacle, Therefore, to the inaugu-
ration of reformed system of Banking in
Tennessee, that would be worthy of the tate
or at least not disgrace to it. is not the Bank
of Tennessee alone, or even in greater part
1t lies with the uuwillingness of the old Stock
Banks themselves to abandon a system under
which they have achieved, and would still
maintain, the double purpose of making inOr-
dinate gains, and rendering the entire State
tributary to Nashville. Let them take the
lead, not in bogus d" resumption" of the old
hiding-out system of lodging redemption, but
in an honest payment of specie at the two
great commercial centrrs of the State-NAsH-
VILE AND MEMPHIs-and the State Bank will
be Obliged to follow. Unlike the Stock Banks
which turn a deaf ear TO public opinion, and
defy the authority of the Legislature. the
Bank of Tennessee is the creature of the State
and must yield Difference TO an enlightened
public sentiment.
We earnestly commend the subject to our
merchants and business men. They have
voice potential even in Bank parors, if they
will but utter it, was proven IN 1853, when
the concession that our local directory here
should be something more than mere automa-
tons, was wrung from the Planters Bank
Let them demand that the issues of those in
stitutious. put out here. shall be redeemable
here, and content with nothing less This
conceded. the State Bank must follow in help
ing to lift our currency from its present de-
graduation, or go into liquidation.