Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-06-21
TVn1nAY MORNING, JUNE 81. 1859,
Tna, ,ns Dsmocrn,le Parry I,rope.e.


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what the democratic Party Propose.
The Democratic party, prOstiDg BY the experience
OF the past few years, AID saESOnished by the eS-
ample Of the older ststsai have determined to re-
form the banking system n 1tnresses. The sb-
ssnee Of sufficient specie sasis for their circua-
ton. the exemption Of the stockholders from indi-
vidual liability for their ssaes and the failure TO
retain the power in the Legislature to change, mod
ify or abolish the charters Of incorporated eonPa
MES, whenever they become injurious or oppressive
to the people, are the radical defects in cur banking
system uhlOh have produced the most serious anAn-
cisl disasters that ever afflicted the Stale
These ars the defects which the Democracy pro-
pose to remedy.
Under the recommendations Of Gov HARRIs the
last Democratic Legislature reformed many Of the
existing abuses in cur banking system. As the
practical result Of that policy, point to the i'm
proved condition of our currency and Of exchange.
The statements Of the banks show much larger
amount Of specie in their vaults as basis for their
circulation, than at any previous time The amount
Of eold and silver in circulation among the people
has been greatly increased By the suppression Of
small notes under tbs Law Of the last Legislature
whereas before the introduction Of these reforms it
could only be procured if at all, at cost Of from
Eve to ten per cent. premium. The credit OF the
State, which had greatly deprecated in the eastern
market. has been restored, and our bonds, which
were selling last Fall st from 65 to 20 cents in the
dollar, are now worth 30 or 81 cents. These are
some Of the effects Of Democratic legislation and
Democratic policy.
But other reforms still are needed to prevent
recurrence Of the evils from which We hsTe lately
suffered.
In order to afford additional security to the note
holders and prevent the banks from making e1ces-
siye issues Gov. HARRIS and the Democratic party
insist that in al future Bank charters the stock
holders shall be made individually liable for the
debts Of the concern just as persons il mercantile
and other pursuits are. This system has been
adopted with the most beneficial results in several
of the most prosperous commercial States in the
Unien.
Col NETHERLAED, in the Legislature Of 1872,
voted against this wholesome provision, being in
favor OF relieving persons engaged IN banking
from Gn responsibility for debts contracted in the
course of business beyond the assets Of the Bank.
Under this policy, the Banks will hoOd the country
with EXCESSIVE issues in the hope Of realizing large
profits, knowing that, in case of their failure, the
creditors Of the institution osnno touch the prop
srty of the stockholders. To this false and perni-
sious system Gov. Harris and the Democrotie party
are opposed, and they propose to correct the evils
resulting from it by Incorporating an individual la
biIity clause into all bank charters.
The most important reform in our banking sys-
TEN, however, which the Democracy advocate, is
the reservation Of power to the people through
their representatives, to change, modify or abolish
Bank charters when the public good demands it.
Banks should only be created for the public &C
comnodstiOA and convenience. In order to make
them subservs this purpose it is necessary to rem
der then responsible to the people, from whom
they derive their privileges If the Legislature
have no power to amend or repeal their charters,
they soon lose sight of the objects of their creation,
cease to regard the wants and necessities Of the
people, and look alone to their own profit and ad-
vantage. They are entirely independent 'oi the
populsr will snd do not care to coRcliate popular
fayOr They consequently become instruments of
oppression to the people fer whose benefit they were
created No sense of moral responsibility restrans
them, for, as Col. EETHERLASD said in his report
On the COZ duct Of the Union Bank, il is "Well
established fact, that corporations in their az
Rregats capacity will, upon their joint responsible
ty frequently commit acts hich iHajCSdUols they
sroWEd blush 10 justify" No Of legal respon-
Ebilty Restraints them, for there is nc power any
where 10 repeal or amend their charters. They are
left therefore to pursue their Of extOrtiOn,
oppression and plumber, if they choose, with abso-
lutte immunity until tho expiration Of their charters
Phsy are supreme sOveregus in the world of finance,
and the people are compelled to DOW to their soeP-
tire.
Such has been the experience Of New York,
nsylvauis Virginia. Ohio and ell the great com
,msrcial States Of the Union. For long time, in
all those States the people suffered from the despOt
;sm of these Incorporated mOnOPOlesi and they had
NO remedy for the evil for they had not reserved
the power to alter or amend their charters.
They we're, at length, driven BY the evils Of the
old system to the adoption Of a new one, and Penn
sylvsnia New York, and many other States moor
porated into their constitutions provision that ell
future charters Of incorporation should be subject
to alteration or amendment at the will Of the Leg
islature.
The State of New York has ninsty-six millieDs
Of capitsl invested in banking under this reserva-
sion. No State has q more prosperous commerce.
OF safer and better regulated banks than New York
las had siscs the adoption of this wise provision,
By which her banking institutions were rendered
responsible so the people.
The same may be said of Pennsylvania, where
they have twenty millions invested in banking
The evils which had been severely felt under the
old system, have disappeared under the present
plan which has been IN operation for years in Penn
sylvsnis snd ip New York.
Virginia, Rhode Island, Ohio, New Jersey, Mas
Faohasetts, Dslewarr Louisiana and nearly all the
prfnspsl States in the Union have adopted the
system. Tennessee yet lags behind in the work Of
Fstsrn
Sci NETKBRIASR and ais parry are doing all