Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-07-08
FRIDAY, JULY 8. 1859.
RePeaIabIe Bank (harters---How
they operate I'm New Y ork--Mr. Fill

In justification Of the position assumed by
the last Democratic State Convention, in ia
vor Of making all bank charters repealable
at the will of the Legislature, the Constitu-
tion of the State of New York, containing
similar provision. has been referred to. 1t is
argued that if the principle is sound and
wholesome in practice in that great CONNER
cial State, there should be no objection to its
adoption in this State. We had thought
there was some evasion of this constitutional
provision; but not Icing familiar with the
legislation Of that State, we did not feel au-
thorized to dispute the example on any mat
ter of fact We are, however, indebted to
our neighbors of the Uhitn and american for
the publication OF letter from Ex- President
FILLMORE, addressed to A. G. MERRITT. Esq,
of this city, in reply to certain interrOgatories
on the subject, which throws all necessary
light upon the subject.
From this letter we gather that in 1880 the
statutes of New York ''were revised, and in
their revision it was declared, in substance,
that all acts of incorporation, thereafter grant
ed by the legislature, should be subject to mod
iication or repeal at the pleasure of the legis-
lature." All bank charters after that time
were granted with that provision. The new
constitution formed in 1916, ''limited the
power of the Legislature to create corporations
to special cases, and then declared that: All
general laws and special acts, passed pursu-
ant to this section, may be altered from time
to time, or repealed"
These are the only statutory and constitu-
tional provisions in New York, as stated by
Mr.. FILLMORE. Thus far the argument in ia
vor of repeable BanS Charters is we'll sustain
ed by the example. But as we learn from
Mr.. FLLyoRE's letter the theory did not ans,oer
an practice. The application of the principle
failed, and that system of banking which pro-
ceeded under these restrictions, has measure
bly, been abandoned. In lieu of it the Free
Banking system has been generally adopted.
The General Bank ng Law of New York is
entirely similar in It's leading features and
provisions to that adopted in this State, and
with which our readers are familiar. On
this point Mr.. FILLMORE says:
'Most of The Bank Charters granted 6y the Le-
sislGture hare expired. AND HAVE NOT BEEN RE-
NEwED, and banks generally are dong business
under tie General Banking Lac"
While there was no other mode of banking
allowed in New York except that burdened
with the absurd restriction of repealable char
tiers, the commercial wants of that State
forced the creation OF banks even with that
restriction. But they have now, to great
extent, abandoned it, by refusing 10 accept net0
charters rizh that pr3vision, and have had re-
course to general banking law, as prefera-
ble-a law, by the way, which we have tried
in Tennessee, and discarded. The facts thus
developed, so far as the illustration of New
Yok goes, sweeps away the argument in ia
vor of repealable charters. 1t was but an ex-
pertinent at best, and has proved abortive-
and to rectify the evils produced by the false
step, the great commercial State of New York
is now carrying on its general banking oper-
ations, on a system which itself has proved
unsatisfactory to the people Of Tennessee. A
more pregnant and conclusive set of facts
could not be well SET out against the theory
of repealable bank charters. And We ven
ture the prediction that if the people of Ten
nessee 80 far mistake their own interests as to
indorse and approve the absurd position as
sumed by the democratic leaders, ON this sub
ject, they will abandon it in disgust and with
loss, as soon thereafter as is possible.