Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-10-23


O. Johnson the President of the Bank Of Tennessee makes oath
that the accompanying statement made BY the the BANK
and Branches, he believes to be correct Sworn to and subscribed
0s''S me On VIC i''n Jay o. 0' JOSIAH FERR1ss, Up
BArr o. TENNESSEE, Oct. %, 1853.
To THE Coa1PrRot1ER or THE TREAsuEy-
Sir: In compliance with the Of the General Assembly atts
last session enclose statement OF the condition OF the
Bank Of Tennessee the lst October the endof the first quarter
In inc think nv to accompany it with briefrep
ion Of the conduct and policy adopted BY its Directors
that its be better and more readily understood
The suspension OF specie 15 me ~ asst a
general extending the United
States we'll as ali other commercial countries and may pro-
% traced TO an expansion Of the commerce trade
the country The EXPANSION Of the banks in the different States
may have nuencen produngt But whatever that
influence may havebeen cannot In the slightest degree be traced
to the Bank Of Tennessee
some years before its circulation had been at time
expanded excite trading or encourage the spirit Of wild
speculation nor has it on the other hard been
to harss and oppfes9 It's Debtors The circulation
averaged about two millions upon specie basis Of about half
that .-,
General Assembly its last cOn, which carefully
ned by committee composed Of majority Of the decided oppo
OF the Bank aundanty prove that Il has at all times been
kept reasonable bounds, avoiding extremes either side,
and aGong people currency sound and uniform the
circsts and business country would permit and at
the same time all its keep exchanges within
nrer1ium and most Of the time half that amount
When the suspension ordered by Directors they deter
ness or Increasing circulation, and that its discounts
limited by its collections by doing its paper circulation
the interest accommodation Of the people Bank
the itself in condition to resume the payment specie
yrhenever the interests OF the country reuuredf it,
The course adopted by the Bank Indirectly approved the
the euera Assembly, when directed Bank should
he compelled to before the M Of November evidently
tending to favor and the debtors By enbng them to
obtain the benefit present crops the payment Of their
debts; at the same posing them severe
Of their business and the heaviest penalties
violation Of the-these obligatory upon the
Desgee and requires utmost caution avoid
forfeiture its charter Acting accordance with the supposed
policy Of the Assembly, the Bank Tennessee afforded
every aid 70 its debtors, consistent with its safety by extending
lifetime of payment their bills and renewing their all
such seemed require it. The emeut exhibits but
moderate reduction in the line Of discounts July last less
than hundred thousand dollars is notes and still less its
The principal stock having refused accept the proy
sons late Of the General Assembly, and claiming be
EXEMPT from its penalties violation their chartered rights
adopted different policy from that Of the Bank of Tennessee and
determined 10 resume le yen5 OF specie four months IN az
Of the time indicated ey me Legislature which necessarily
required still further reduction Of the paper currency
more rigid Of their debts In self defence the Bank
Tennessee was forced 70 adopta similar Poy o. Golscon ana
Withholding usual accommodations. 1t furnished additional
grounds those opposed to all banks for asaung the Bank OF
Teunesa It was denounced as rotten UNSAFE and ualrOTEV
Of public confidence and for the Planters Bank
time, regardless Of the eatnteress Of the State in
preservation and proper management and without found
puhhedand verified by examination Of the Legislative
committee, and with full kuowedge that the State stood pledged
for the payment liabilities If the settled purpose Of
assants BIZ destroying public confidence produce the ruin
which they had predicted To such an extent was the public
loved very large circulation that SI Ss Of
turned for reIempton principal in Nashville,
tween the h July and the st October they were paid and now
remain in The vault Of the Bank.
Under such circumstances Branches finding that no
ness safely done discounts for the public and
ing their ability a demands against theni in August vol
it, The principal Bank at Nashville having hut small circuia
time, during the susPenso refused payment in
gold Of any demand made upon it.
The resumption Of specie payments by the Branches in advance
thorough conviction that less evil would result from to the Bank
and the people, than from POpOuement until November 1t
sauts made upon the BY assaans would restore
public in its ability 70 all demands, and might
enable them the earlier to resume their legitimate and customary
The scredt thus brought on the Bank together with hepo
cv pursued the and free banks Of returning
notes redemption from all parts Of the State have preventedt
from granting accommodations to the extent it had formerly done
which greatly desired BY its Directors and by
the community; whilst this Of confidence continues
tas in Circulation in any ps Of he State shall ~ at once
returned by some payment must he appa
rent TO every that but little business han
profits Of the bank must be greatly reduced
Many evils which the subjected from
OF uniformity and regularity in is paper circulation has
competition business and for public favor which necessarily
result from it.
When il was asceraned United States Bank could not
rechared appehended that there would deficiency
Of paper circulation and the Union Bank chartered supply
place and the State became partner, subscribing half
lion Of dollars compLt soon arose that under the
troll OF Few ayor VINO ma-ged Tor Their own advantage
session Of the legislature called upon another
ocoHnterae effects, and the Planters Bank chartered
the State became its partner also subscribing purchasing
quarter Of million OF dollars Of its stock.
The expansions and contractons Of s banks sup
posed have had much influence producing disastrous
period 1887 and induced the Legislature Bank fits
with capital Of five millions little over half
capital has yet furnished the
in the other increased near
hundred thousand dollars The placed un
der the control offhr Stockholders who believed to
citizens States, Tennessee was made
subject to the control Of the General Assembly
Private capital controlled by private arrayed
against public capital under the the legislature and
million Of dolla Of the of the placed
compete with the latter.
1t cannot that the management Of these antag
onistc Interests collisions take place preudcial to the in
o n
last message Of Gov. johnson, the entire circulation Of the
stated at nine millions Of dollars, it but little
coed onetird Of that
Debts contracted the State counties and Cities Internal I'm
pr0Yement companies well individuals upon the inflated
currency that then existed will have be paid with the
present diminished circulation not reduced gold and silver
one exclusively su expansions and contacons IN the paper
currency Of the State cannot but nurousy Affect interest
and will periodically long left under he control
Of the stock banks as II mas heretofore BEEN and whenever their
interests demand it which often most advanced by its
irregularity
zaon of those institutions scarcely be doubted that such
conflicting interests he COueed the evils felt
adopted whether all Of them shall bedisconinued.
and contracton Of the banks, which existed produced
hecharerof Of 1888 exists at the present
policy which led its adoption will require its protection now
and increase Of its capital to the amount originally cOntem
and currency which viii be produced by withdrawal Of the capt
tai Of the other henks shall be the Of the PEG
pie dispense with them the expiration Of their charters
It apprehended last winter that the present state OF things
Assembly the capital the bank for the purpose
. much needed Of enab ing it to afford relief the people
supplying the deficiency the paper currency which
Exists.
Tne State cannot dispense with the Of banks during the
ence OF the present without aYOaqR Of their
gts; nor probable it will exclusive
silver currency at time The people have been
oeI To the use Of hank paper half century, cur.
every Of the UniOn and in most Of the
necal countries intimately connected with the value of
property and Of abOrso IN the transactions Of
that abolition however gradual, would
revolution in business trade, and in the value property
neither advance the interests Of the State the peo
lie If adopted would probably result in the Of per
money Of the adjoining Ses believed be the att
me in Mississippi and Arkansas and would afford reliable
urency that furnished by banks 1t urged by
advocates Of that system that upon the Withdrawal the
aper money place would be supplied the precious
leta Within the Two years, six mi lion Of the paper
urency Of the has been Withdrawn from circulation
that yet gold silver has taken Us place. If has
done within years, how much longer time will be
squired
The influx Of gold and silver will mainly depend upon re-
surplus products OF the State sold in foreign
s and will not probably whilst we buy more than SELL
whilst our banks by policy give currency to foreign bank
dispaoe the circulation
banks within state, and 70 realize large amount Of
,change from the sales Of surplus producss
Experimentation being madef dispensing with the use OF
nknotss under ten dollars enable decide whether
steps taken towards an exclusively gold and silver
rency consistently with the uenteres of the people, and
hen and how it is to be done. n
paper currency the State interviewer with m
pursuit, much influence upon the value Of -
opery and price Of labor that its proper regulation has be
importance every interest," and should
tn the control of bankers and heretofore but
oud be placed under tie control OF the Representatives Of the
ope The State should not only control the amount to be
ed and the kind but should be made responsible to its holders
paper dollar issued by its authority, and that all the
Od arising from the banking system, should be paid into the
bic treasury and relieve the people from taxation to that r
tent "
entertain not doubt that the Bank Of Tennessee and its
nces proper Of its charter, and increase Of
capital to the originally temPlad BY its trainers,