Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-09
THE PLANTERs, BANK.


Bank, estimated on information which we be-
leve to be reliable the statements Of any bank
organs officers whatever, that their profits on ex
change had amounted tc forty CT fifty per cent on
their capital invested in bills In this estimate as
our language shows, we did not pretend to mathe-
NAUTICAL accuracy, but merely intended to give an
approximate statement of the profits which the
Planters Bank had realized by reason Of the pow
ers and privileges with which it had been invested
1t is sufficient for our argument against the extern
sion of snch privileges to the Planters Bank 70 show
that its profits in the exchange business have at any
ime during the period Of It's preseld csarer, approx
mated the amount stated.
As we do not belong to the number of those who
frequent the parlors of banks and bask in the
shine of their royal favor, have not been favor
ed with opportunity Of examining the mysteries
of the system of legerdemain by which those insti
tutions realize their profits. What those profits
at any particular time, only ascertain from
the nature of transactions in which they are known
to have engaged Although we may be in error
with regard to the precise amounts which the Plan
ters' Bank made from exchange during the last sCs
pension we have been furnished with data from
which we can estimate its profits at an earlier peri
cd Of its existence under its present act fmeorpor
alton 1t will not avail the officers OF that institu
ton then attempt TO nvalidate statement, as
the Nashville Ne,os processes do by their author
ity by clubbing about dates Such is I'M
worthy of gentlemen of standing and position. We
can scarcely believe that they would authorize the
Editor of the Nelcs to deceive and mislead the peO
pie on an important question by resorting to such
miserable subterfuge.
The material point is what amount Of pro-
fits has the Planters Bank been enabled to re-
alize under the provisions Of the charter,a re-
nswal of which is now asked for? We are in
formed on reliable authority, and assured that a
reference to the books of the bank viii verify the
statement, that during the suspension of ~, ard
even since that time, the Planters Bank charged
from eight to ten per cent for exchange. Buying
sixty DAYS bills at a discount of one and a half per
cent, as is constantly done by the Planters and
other Banks and re-nvesting the proceeds at dis
of three per cent the Bank realizes four and
a half per cent the transaction. Selling the ex
shange, then, at eight per cent we have twelve
aud half per cent. as the profits of the Bank for
four months thirty-seyen and haf per cent. per
annBm When the price Of exchange was as high
as ten per cent these profits would be increased to
fOrty-three and half per cent We do not know
for how long these enormous rates continued but
single instance Of such extorton is a sufficient argu
nent against renewal of the charter which permits
IT,
But the Ne,rs has not only been authorized" it
says, by the President and Cashier Of the Bank, to
say that our statement which is substantially veri
fed above, "is totally uufounded in fact but the
same fortunate and favored organ has been furnish
ed with statement from which it learns that the
average annual dividend paid by the Planters Bank
20 its stockholders the share of Sl00is only So
Benevolent stockholders! Disinterested bankers! |
They have absolutely been furnishing currency to
the people of Tennessee, without realizing enough /
20 pay their bonus to the State according to the
dag and credulous Mems. 1t is astonishing that the
Ne,rs did not find out from this statement, in add-
ton TO the information which it imparts, that the
Planters Bank has accumulated surplus profits. not
distributed TO the amount of S493lS6 so, more
than one-third Of its capital-al realized we learn
since IS4Eand that its dividends from the first Of
January 1851, to this time. including Dividend Of
five per cent last October, not mentioned in the
statement amount to forty dollars on the hundred =
pretty large tax levied on the productive labor Of
the State
The Ne,rs saw none of these things. 1t was oc-
cupied with its attempts to humbug the people by
leading them to believe that the capitalists of the
Planters Bank had been losing money in their be-
nerolent exertons to furnish them with currency.
Let us look back to the early history of the Bank,
and see whether its stockholders have actually been
generous enough to loan out their capital at % per
cent
That most careful and exact statesman and public
servant. GEORGE W JOKES. in his speech delivered
on the Sub-Treasury in Congress, April lst, 1916,
saws in regard to the organization Of stock banks in
Tennessee. (the Union and Planters were the only
ones,) that
Il have never voted for Bank charter. Bat in
fhe State Of Tennessee they have made banks some
stock banks They were an Improvement on the
old stock note system which exploded IN IL. lSi !
and they required that the stock should be paid IN
cold and silver Was this done? Mo- but when
the books were opened, and person came to sub
scribe for the stock. he would say, have not
brought any gold and silver Those having the
management OF the affair would reply. 'ltdoes not
make anv difference; subscribe. The managers
at Nashville say that gold and silver Is not necessa-
nv. Pay Us in the notes of specie-paylng banks
and if our bank, when II goes into operation shoulu
require specie, she call on the bank in whose
notes YOU paw, and get specie for them. In this
way the first instament on the stock OF these banks
How was II subsequently? The banks issued a
call for an instalment Was that nStalment paid IN
gold and silver as the charter requircf In some
cases il may have been 50; but in many instances
the stockholders got their notes discounted IN banks
the proceeds of these notes were passed 10 ihelf
credit on the discount books of the banks; and then
the stockholders gave q check 10 the clerk on the
other SIDE Of the room for tie amount they were
called upon "a pay on the stock The clerk TOOK me
check, gave the stockholders credit for so much
paid on their stock account; went 20 the discount
book and there charged them with the amount Of
the check paid this day. and thus tine books were
balanced. Others paid in the notes Of the bank.
And the people found two dollars Ot this paper cur
.as.. f5hT % .
stockholders anC bank notes paid n Is capital
stock
The statement Of Mr.. JONES has never been denied
from 1916. when it delivered, until the present
time. il cannot we presume. be truthtully denied.
So If appears that during the early periods OF the
Banks existence the stockholders were charging the
people Of Tennessee for their currency based upon
credit alone and realizing profits upon circulation
Of lrLicl Aeg ivseifl7o dollars for Everyone dollar that
they ousl Tie Bank.
We hope the Legislature viii be beeomingly CRATE
full for tins instance of benevolence on the part OF
the Planters Bank.
The Repeat eE Ihc Missouri Compromise.
The Daily Ns,rs comes to the aid OF the Nashville
Banner. and asserts that thc repeal of the Missouri
Compromise re-openng of the slavery agi- {
tation.' il certainly has never been any part Of
our purpoae to deny that the Abolitionists have {
found great iault with the repeal of the Missouri
COmpromisc line. What we say is this. that the {
AbOIiuOnists found fault with the establishment OF
the lire that. with or less bitterness they o-
posed the admission of slave States before the re-
peal of the law establishing that line that in 1850
they refused to extend that line to the Pacific that
the excitement which followed the enactment of the
fugitive slave law, in 1856, vas as great as that which
followed the repeal of the Missouri line and from
these facts we have argued determination TO agi-
tate, on the part Of Northern Abolitionsts which
no compromise short Of the entire abolition of
slavery would appease.
IL is against s1ray that Abolitionism is organized
60 oyate and nothing short Of its entire abolition
will satisfy the agitators. For Southern men to cx-
this agitation on the ground that il was occa-
STONED by the repeal Of the Missouri compromise is
perTersion of the facts Of history. 1t preteXt