Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1858-06-03
Early Banking in Tennessee.

Weub WnlCu tue OiC Dduk Vi lNhoI-
vile encountered, and the circum-
stances which forced it into liquida-
ton:
Upwards of forty years ago the
the Legislature of Tennessee char
tered the Bank of Nashville, and 10
due course of time the necessary or
ganization, under the charter, Was
effected, and the notes, beautifully
engraved and properly signed, were
ready for circulation. at this point,
however, the Bank encountered an
unexpected and formidable obstacle.
The people of Tennessee at that day
were a self-relyiDg and practical peo-
pie, and had but little confidence in
Bank Directors or paper money, and
could not realize that piece Of pa
per was as good as a silver dollar
In short, they positively refused to
receive the issue of the Bank in
payment for the surplus products of
their farms. The Bank was in troub-
BILE, and unless this foolish prejudice
Of the people could be overcome it
would prove still born affair. At
/ this period the merchants of that re-
giOn bought up the surplus cattle of
the farmers and drove them to Phila-
delphia and Baltimore and sold them
and laid in their annual supply of
goods. At this time Joseph John
son. now an old and most res pectable
citizen of GAINESVILLE, Tennessee.
was a leading merchant at Lebanon,
some thirty or forty miles from Nash
vile. He dealt in cattle more ex-
tensiyely than any other man in the
country, and was more generally
known in his own and the surround
ing counties thanaD man in Middle
Tennessee. And no man in the
State enjoyed the confidence of the
people to a greater extent than he
did. 1t occurred to the President OF
the Bank that johnson was The man
TO inspire the people with confidt nee
in the institution, aud if his co.ope-
ration could be secured, there would
he an end to their trouble, and the
people would soon be brought to IN
dersiand and appreciate the beauties
and advantages of Taper currency.
He communicated bis views to the
Board aud they we're adopted, aud
he was authorized to open negotia-
lions with Johnson at once.
Bright and early the next morn
ing tie President set out on Lis Fl.
nancial mission, wilha good horse and
a pair of saddle-bags, well filled With
Bank notes under him. He reached
Lebanon that night and called on
johnson next morning. A satisiac-
tory arrangement was soon made.
johnson was to pay out the notes of
the Bank for cattle, and the Bank
was to provide for their redemption
at johnson store, in Lebanon.
johnson supplied his agents with
both silver aud paper, and instructed
them to pay oHt the paper money to
those who were willing to take his
guarantee that it could be converted
into specie, either at Lis store OF at
the Bunk of Nashville. johnson S
pledge that it would be redeemed
with specie at the will of the holder.
induced many of the farmers to take
it in payment for their cattle. Esq |
Fitzpatrick. Of Smith county, sold
one Of Johnson's agents ten head OF
cattle, and received hundred dollar
bill in pay ment. After helping to
start the cattle, he went to the house,
and found dinner waiting. He took
n seat opposite to his wife. A large
bright pewter basin, filled with rich
hot soup, occupied the center of the
table, and near the table on the
Esq'rs right, was squatted on his
latter end, with mouth open, ready 20
receive whatever his kind master
might throw him. Whilst the ESQ RS
soup was cooling, be took the Bank
note from his pocket, and handed it
to his wife.
She unfolded it, and after examin-
ng the pictures and figures on it,
asked the Esquire what it was.
THAT is money! said the old man
-"a hundred dollars" "MoneyP' ,
exclaimed the good woman. eyes,
the husband; 81 took it !
or ten steers that sold Joe John
on "WelI! did / ever hear OF
uch FOOL put in the old lady.Itt
Never mind" said the Esquire;
Joe johnson sent me word that ! !.
an get hundred dollars in specie 6
Or it whenever | want it, either al
lis store or at the Bank, and bis
,ord is as good as gold" swell. :,