Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-03

ll-IsEtg III tHe patuleIb VI uSDt. dfOoc N
gress Of trade from the same usage, their nego-
liability became established law. Chancellor kent
declares they were negotiable on the Continent and
in England, long before the statute of anne. 1t is
an established historical fact that the notes bills
OF credit of the London goldsmths, were negotiable
long before the passage Of that act The traders of
london took them, and they passsd from hand to
hand as money. because they believed they could
get the money when demanded from the goldsmths,
who had given them for money deposited for safe
keeping.
But is wholly immateriaI whether these bills of
credit as they were called, negotiable by the
usages of trade or by statute of sh and 9Th Anne or
by the act of 1852 in force in Tennessee that moment
they became negotiable, that moment did the right
to issue them to any extent in the payment Of debts
or to loan them as a currency, arise. It became
separate pursuit, belonging to each and every mem
Der of the body polite, to exercise when and how
and where he pleased, founded in the negotiablity
of notes payable to bearer on demand. Expert
ence has shown that these notes have power to ex-
| pei the whole metallic currency from the country
where circulated, and to afaict the country with
such deporable arrangement in all trade to have
induced WASHINGTON, JEFFERSON, and JACKSON TO
express the deliberate opinion that their circulation
ought not to be tolerated but that they ought be
suppressed STILL it has never beendenied that their
issuance By individuals, bills of credit, was in
violation Of no law, but founded on the nego-
liability Of notes payable to bearer and belonged 70
each individual member of the community as Of
common right.
The system of banking, IN all its departments,
sprung up in England, Scotland and Ireland without
any express law authorizing or establishing it. tho
partner stable as others their debts and to have
their property seized instantly on the commission of
act of bankruptcy and though the system has been
regulated by the prohibition of all notes under 500
to keep on hand supply of metallic currency, still
the right was founded ceLamon right, and not on
act of parliament So, under this common right
belonging to every citizen, banking associations
sprung up in New York State under articles of as
ISOLATION the individuals composing it being liable
for all the debts of the association. 1t under
this common-law right that the banking house Of
YEATMAN, WOOrs & Co, firm ofgreat capital finan,
cal ability and integrity, sprung up in Tennessee
without charter and continued in the business a.
partners for than ten years, successfully and
proftably; and it has been on this common grount
that the right issue change tickets was exercised
PAOhiDAeSu " See'l1hN
law. ,aa.
The Chief Magistrate of the United States, in
message VetOng the Bank of the United States, il
, 1882, said: Banking. like farming mining man
ufacturing, any other occupation profession il
business the right to follow which is not original
ly derived from the laws. Every citizen, and ever
company of citizens in all our States possessed th
right till the Legislature deemed it good policy Il
prohibit private banking by law. If the prohibito
~ laws were now repealed, every citizen woult
again possess the right The State banks are quail
flied restoration of the right which has been take
+ away by law against banking" r FsF
q There was no law against private banking in Ter
nessee till the year 1927. That act declared tina
mo corporation unless chartered BY the laws of tn
United States of the State of Tennessee no asso
citation, company, individual, or individuals, shall
erect establish, institute, put in operation
banking Institution, association or concern, an
Office ofdeposite ordscOunt, or shall issue any ban
) bills, company bills, bills of exchange, promissor
notes or other instrument, with the intent, view
purpose of putting in operation any banking insttu
: ton or concern or office of deposit or discount,
e and if they do so, they shall be indicted and
e viction be fined $4,000 By subsequent enactment
lAOSG WIN lSSucu tAShNSso "
: similar penalty. If there had been no banks in
isence and chartered afterwards these statute
e would have placed Tennessee in the condition c
California Texas, Oregon, Mississippi, Arkansa
as to a paper currency. But there were two bank
in Tennessee at that time the Bank of Tennessee an
e YEATNAE, WOODS & Co. They gave YRArMAS, Woor
: & Co. till 1885 to wind up the payment of 500
: tax per year. and in 1882 the legislature gave tina
firm till 1910 to close their concerns. There, ther
n is sweeping prohibition of the right of banking
!, founded on the fact that the right existed unless
: was prohibited. In 1904, New York had passed
d similar law restraining private banking; and in Isl
d bill was filed by the Attorney General against tn
y Utica Insurance Company to restrain said compan
from the exercise of the right to engage in the bus
ness of banking and to enforce the rights of the e.
sting monopolists to the sole profits fthe business
- Chancellor KENT dismissed the bill for want of il
ID rsdiction but declared that right to engage in tn
e business of banking was right belonging by con
y mon law to every member of the body polite, bu
" that after the passage of the act of 1904 it was
u franchise derived from legislative grant
ID The Supreme Court of Tennessee declared til
same opinion in IL Hum. p l, citing the opinion
n the chancery court of New York in 1919.
al Thrust be regarded, therefore, both historic
Of fact on reason and judicial authority hatthe prof.
bitory act Of 1897 deprived the people ofthe State
large of a known and lawful employment, and tn
the charters subsequently granted gave the sole rig
to the profits of this trade to those persons who
= the stock.
Of 1t is commended that the conjoint force and oper
d. ton of the prohbtory law of 1927, and the spec
1t charters granted, create monopoly within ii
meaning of the Constitution and of the statute 81
JAMES, decaratory of the common law. The Suprem
Court of New York. in 1858, said that bart,g IN Ii
OF State ,sas the subject Of monopoly by special chcrte
of from the d1le Of the restraining act in 1894, TIL 1888
he lVtea he restraining lac repealed Smith Re
st The great republican principle of uniformity an
nd equality in law was INDICATED in the passage of Il
lis act of 1888 There was no provision in the cons
tuition Of New York prohibiting monopolies.
p 1t was under the prohbitory law of 1927 that M
OF KRTIAND of Memphis, was indicted in the crimin
TO- court at Memphis for the establishment of an off
k of deposit and exchange at Memphis He had cha
tered to keep the money of the people who wanted
r. deposit with him for safe keeping, OF to buy b
y of exchange from one man and sell it to anotha
o. He was therefore convicted and fined ten thousa
Is dollars He appealed to the Supreme Court
before action on it he discharged by an adPo
act of legislation at the last session. thus showr
Oy an unwiIngness to execute the law. 1t is insist
as that if the legislature gives the sole right to cha
Is ter companies shoe horses, or bake bread for
o. public make public repositories for money or pr
NJ duce the right cannot operate to exclude other
ne that it is void as to others that unless it was Il
y intention Of the legislature to suppress the ira
as entirely made manifest by the terms of the act Il
no prohibition would be void. Mr.. KBTLAND WI
wrougfully convicted. if the case Of Darcy, Z
3D. Allen. IL Coke, be law Tie trade must be grant
nd to all or refused to all The business of banking
therefore open to all to engage in it If there
ss been any adjudication in the State defining what
ke monopoly is it has escaped the research Of the
IS, thor of this communication. The little value :
nd tached tc the monopoly of this business in the ca
nc er periods of the existence of this commonweal
It's uust account Tor this absence of judicial inyestG
- ton.
re PRoCLAMATFeN.
re TeULN q uARRIs Governor Of the State Il Ten -
nessee To the citizens Of said SiateGreetng
10 IN conformity 70 the established custom, hereby ap
an point Thursday the Twenty fourth inst as day
Public Thanksgiving ans Prayer to Almighty Soo l9r