Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-06-23

1fSl 70 1000, l5 CURIOUS ana instructive.
The right to pursue the business of banking
that's TO keep money for others on deposit, to buy
and sell bills of exchange, and to issue negotiable
prcmisory notes, being rights by common law be-
longs to every citizen in the absence of restraining
statutes, q johnson, CD. Rep; IL Humphreys /;
Jaekson's veto message) The prOprietors of the
stock Of the Bank Of New York, commenced bus
ness as banking association in 1884, without
charter, as did the firm of WOODS, YEATMAR s. Co.,
ct later period in Tennessee, liable individually
for all the debts they might contract They acted
without charter till 1871, when one was drawn up
by ALEXANDER HAMILTON, and presented to the
Legislature, with capital ofone million of dollars
The recollection of thesevere losses by Continental
money and by bills Of credit issued by the States
caused opposition, but it was passed. Romans,
vol l, p 1917 The superintendent of the Banking
Department of New York. in his report for the year
1857, says, this charter contained little restriction
andWa apparently created with no other view than
to exempt the individual stockholders from the
deots and contracts which they might ncur. They
were authorised 10 contract debts to three times the
amount of the capital sock subscribed and paid
in, and to the additional amount of the money
deposited with them. 1t contained The elements
OF its own destruction, says the superintendent.
Thus was the system of banking under charter con-
tracts ADOPTED in New York. under the auspices of
ALEXANDER HAMILTON, in which he adopted the
model of the Bank Of England, without its basis Of
Government security, its limitation of issues to the
amount of capital stock, its restriction of notes to
S24 denomination, and other safeguards. This
charter was the model of fifty others granted prior
to the year 1925. Supreme Court of New York.
Smith. Another bank was chartered in 1892, and
another in 1888.
They were severely contested, for, in addition TO
the opponents of paper money mOnopoes, sharp
contest arose between the applicants for new bank
charters and the existing institution Hunts Nag
aziHs, vol. %. In 1893, Mr. BURR got through the
Legislature the charter of the Manhatten Bank I'M
der the guise Of An act to furnish the city of New
York with pure and wholesome WATER" the surplus
capital to be employed in any manner not incom-
patible with the laws of the State It's capital
stock was two millions; its charter perpetual. 1t
is now in existence. In this way grew up, says
HAMMOND, in his history of New York, gigantic
monopoly.
After this all charters were supported and oppos-
ed on political grounds. Hunt, vol 90.
In lSO3 two other associations, not being able 10
procure charters entered into the business of Bank
ing on the principle of partnership. The mOnop-
Olists were then enabled QHunt) to procure the
passage of the act of 1903, subsequently included
in the Revised Statutes, which enacted that no per-
sons, association of persons or body corporate, ex
cept such bodies corporate as should be expressly
authorized by law, shall keep any office for the
purpose Of receiving deposites, discounting notes
or bills or issuing any evidence of debt to be loan
ed or put in circulation as money The two IN
chartered companies were by this law compelled to
close their concerns, to give way to bankers who
not responsible for their debts and gave no Sc
curity for the redemption of their circulation
WOODS, YEArMAN s. Co. were in like manner COM
PEELED to close their house in Tennessee, and were
allowed time to do So as the unchartsred companies
were in New York. Banking, which, before the
passage Of that act, was pursuit open to ALL now
became, says the Court OF Appeals of that State
franchise grantable by the Legislature and the
profits thereof the subject of monopoly.
In 1903, petition was presented for the charter
Of the State Bank at Albany, by Republicans 1t
stated that the existing banks were all in the hands
Of Federalists The bank was chartered, snd the
stock distributed largely among the members
Hammond, 1914. De WIrr CLINTON opposed the grant,
though belonging TO the Republican party. In
lSO5 the two unchartered companies were charted
and corrupt means used to obtain the charters
Clinton moved to expel the author of the bills, and
he resigned to avoid expulsion, on the charge that
he was bribed Other charges of bribery were
made. At the next session, law was passed TO
punish the bribery of members or an attempt to
bribs them.
At this period, few monopolies, says HAMMOND,
had the making of the currency of the State,
and the precious metals had ceased to be the circu
lating medium.
In 1871, certain projectors applied for a charter
of bank, to be called the Bank of America, with
capital of six millOns, bonus 10 the State, $780,
geo; 100000 Internationally, 800, 900 in ten
years, and 100000 in twenty years, if the Legis-
| lature should not in that time charter any other
banks, like the contract made by the Government
| Of Great Britain with the Bank of England not 70
permit the issue Of other bank notes within sixty
miles of London; and like the charters of the two
Banks of the United States which bound the Gov
eminent not to charter any other nix. The propo-
sitiOn also that they would loan one million to
the State for the canals, and one million to farmers
INHAANSNSSSulity' Ano purity, generally,
took ground against it, 1t was said that go gigantic
monopoly would fall into the hands of the FEEDER
slists, and control the State. Gov. ToMPKINs
and Gov. CLINTON we're against it The struggle
before the Legislature was violent protraated and
intense 1t passed the Senate and went to the
House, where the Governor defeated it by terminal
ing the session by propagation, then authorized by
the Constitution. "The business of procuring bank
charters was now becoming regular mercenary
employment by men who, like the straw bail in the
courts Of law, attend the halls of legislation to be
hired, and we're sarcsstically called Lobby Mem
bers' The practices to which they resortsd I
were becoming so threatening to public vir-
tue, that DANIEL D. TOMPKIEs, then Governor,
declared, in his message, that, beyond any rea-
sonable doubt, corrupting inducements were held
out some years since to the members of the Lpgis-
lature to obtain their votes for the Incorporation of
banking institutions in New York city, and very
strong and general suspicion was entertained that
smoluments rendered were in certain instances ac-
cePted Al the last session, an act was passed in
cooperating the Jersey Bank, and a very general
public opinion exists that unwsrranLable attempts
we're made unduly 10 influence the Legislature. The
Journals of the House show that ATTEMPTS had been