Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-05-28


ceptiOns, showing that the policy Of the Legislators
was vacilatng and governed by no general princi
pie, indicating favOritsm and Influences brought to
bear on the body.
! ls50.-At this session banks were chartered al
Lynchburg, Norfolk, Paramount, F1edericksburg,
and StantOn all the charters subject to the repeal
ing power of the legislaturc-p. 4S. Railroad
charter, subject to repesl-p. CO.
1852.-At this session the legislature changed the
toll all the railroads, having reserved the right
There were at this session fourteen banks neorpo-
rated, to sill Of which was appended the following
clause: "The charter Of this bank shall be nforce
FOR twenty years from and after the passage Of this
act, unless sooner repealed or modified by future
laws" Sea 10 10 1884, These banks we're all re-
quired to give security for the redemption of their
notes, by the deposit of public stocks in tho hands
of public officer. Every stakeholder was made
individually liable for the redemption of the crcu-
lation and express contract debts, ratably to the
extent of his stock after the exhaustion of the as
sets Of the bank consisting of stock paid in &c. Sc
If its coin at any time fall below one Of specie to
FIVE Of circulation, the bank should make no more
loans till it come within the line prescribed If the
legislature had directed as ia louisiana that they
should not contract debts by receiving deposits or
issuing notes without money OF hand, one dollar Of
gold for three Of debt aad that they should also is
cue note for less than $50, they would have had
better system.
At hs session of $780, the right TO alter OF repeal
manufacturing and navigation charters, was gensr-
ally reserved.
lS53.-There were ten other banks incorporated,
all similar to the above
1854.-At this session there was one bank char
tered, founded on individual responsibility and cub
lie securities deposited, and subject to modification
and repeal just as the previous charters had been
made. As 10 ether corporations for other purposes,
such as academies, mining, manufacturing hotel,
and improvement companies, sometimes the right
was reserved, and sometimes not, showing no reg
ular principle Of action and leaving the Legislature
open to the charges Of bribery and other improper
appliances,
18j6.-At this session there we're five banks es-
tabiished on public securities and individual re-
sponsibiiy, all subject to the control Of the Legis
latiye department Of the Government securing the
rights of creditors against the corporation, its Of
foers and stockholders in case of repeal: page 64
to II. Asst Mining and Manufacturing Companies
the right to repeal reserved in all cases. in other
cases the policy not uniform.
1S57-S-At the last session there were five new
banks chartered, ali based as the former ones, on
public securities and individual responsibility, for
the notes aud express contract debts Of the Corpo
ratiOn-after the exhaustion of the stock of the
bank and assets ali subject to modification and re-
peal and all required to suspend business if their cir
culatiOE exceeds five Of paper to one of money Oh
hand, till they the amount of gold required
The Charter Of the Bank of DAnville was 50 amend
ed as to require it to keep hand one Of money to
every three of paper circulation This comes I'D 10
the standard of the Bank of England and of the
Free Banks of Louisiana the standard recommended
by Mr.. BUCHANAN. If all the Banks Of Tennessee
had been required never to contract debts to a
greater extent than three to one it would probably
have required crisis than the last to have
them
From this review Of the legislation of Virgins
from the year 1850 to the present day, it must be
apparent that the well settled policy Of that State
SO far as Banks are concerned is to retain the con-
rol of the paper issues in the hands of the sover
eign power of the State The great abuses to which
his system Of paper issues is subject at the expense
Of the country demonstrates to tae mind of every
well informed man, and renders it absolutely neces-
lary to the public safety that this power should be
reserved 1t does not appear that holding the cor.
'ecting power in the hands of the Legislature has
destroyed the paper system IN Virginia, or evsn checked
Z. We hear of no oiamor about the arbitrary aud
of ., 7
We have heard much of the abuses of the banks
md of their refusal to comply with the obligations
imposed on them in their charters
The sovereign power should be undar no neceg- |
iy of having law suits with every chartered F.!
company which may abuse its powers - abuses
which may arise in any other corporation, and
which could be corrected by general law appli-
able to all of the same class of corporations with.
ut the continuance of the evils, and correction
them by lawsuits in each case, at great expense.
S they may arise from time to time There ought
D be no such thing close charters; corporations
ught to be created without exclusive privileges or
zempllons, by general laws, so that every body
ould get them who wanted them They ought to
governed by general laws just as other interests
the State are governed by general laws. There
light to be no exclusive privileges, no monopoly
corporation rights, 10 special legislation what
yer. If this were the settled policy Of the State,
S good effects would be apparent to all 1t would
move from the elections disturbing and exciting !
ement; 1t would prevent a useless consumption Of
lolic time in debate and shorten sessions; it would
event the corruption of the Legislature by bribery
members. Organized banks with large capitals
n afford to hire men to come to the legislative
Ills as lobby members, u influence, and con-
inmate legislation. They can bride members;
ey can hire writers for newspapers aud substitute
press; they esn afford to give hundreds of thou,
dds of dollars to get corporations chartered with
privileges for quarter of ceutury,or
en- for ten years. All this time, expense, agita-
n and corruption, could be avoided by letting
cry body get charters who wanted them, subject
"a of the forfeiture of charters whether regarded
set up in prevention of evil and abuse, or as a
nishment for abuses, is an unmitigated humbug.
paper money be allowed at all, there should be
monopoly; no exclusive privilege about il; no
porate exemptions The forfeiture Of charters,
ere there is capital, amounts to en- expulsion of
ital, y Oh is gross absurdty, if capital in a.
neh of business be considered compatible with
nd public policy. A
III acts Of legislation authorizing associated
lies of men ought therefore, to be free to all, and
iact IN fufure Laws ubisb NAV bn ma do from t;ra