Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-06
BILL TO RENEW AND EXTEND TIE
CHARTER OF THE PLANTER,S BANA'

SUNDAY, NOvEMBER 6, 1859.
BILL TO RENEw AND EXTEND THE
CHARTER OF THE PLANTER,S BANK l
Since the assembling of the present Legislature,
and for several weeks before. there has been sys-
tematic attempt throughout the State to get up a
money panic The banks have reduced their elrcu-
laton and abridged their discounts, and suggestions
have been thrown out through the columns OF their
organs. that public meetings should be held for the
purpose OF memorializing the General Assembly IN
favor of the adoption of certain measures for the
relief of the public distresses.
These are the premonitOry symptoms which al
ways manifest themselves just on the eve of an apPl-
cation for bank charters and the symptoms appear
in more aggravated form just in proportion to the
supposed difficulty of obtaining the exclusive priVi-
leges which are desired by these corporate monopo-
lies and in proportion to the exuayagance OF their
demands
In the present case, the symptoms appear IN
very malignant form The voters Of Tennessee have
Just determined by majority of over eight thous-
and that they viii longer submit 70 the, despot
ism of banking corporations-that they will not be
oppressed ana plundered, any longer, that fo-elgn
capitalists may grow rich from their earn
ings The financial disasters of the last lew
wears are vet fresh in the memory Of the Peo-
ple. They have not forgotten how the banks IN the
language of the Governors Message, aetuated by
spirt of selfish avarice and eupidity, have flooded
the country with their circulation, by which they
have stimulated overtrading-wild and reckless
specuations- habits of luxury and extravaganza,
and induced thousands of our population to aban-
don the fruitful fields of production for the more
fascinating vet more hazardous fields of speeula-
ton: aud when they have reaped the full benefit OF
a large business. and the bubble can be expanded
no farther public confidence becoming shocked, and
the country threatened with commercial reyulsicn
as the legitimate fruits of their conduct, have qui-
etIy closed their doors and said to the victims of
their policy: We extend no farther aecommoda-
tions: we have suspended and win not even pay
the notes you hold liponus Thus leaving in the
hands of the people deprecated and irredeenable
paper. as their only currency losses by the de
reciation of which fall upon the industrial classes,
who are usually the note-hOlders; while the banks
avail themselves Of the depreciation by transmit
ting their available means to some ohe OF the
commercial cites of the North, and charging their
nOte-holders frem to 10 per cent premium for ex-
change; or, in other words they first dePreciate
their own paper by refusing to pay it. and after
having deprecated it, they buy it up at from toto
per cent. discount. paying for it in check on New
York instead Of gold"
A party has been placed in power pledged te pro-
tect the people from such evils in re-pletged
TO create no more money kings in this State with
power to regulate eur commerce, raise or dePress
the value OF our property and exercise such extra
ordinary prerogatives as have been granted by the
legislatures independently of its control and with
out being responsible to the people.
Under these circumstances considerable outside
pressure is necessary in order to induce the legisa-
4ure Of Tennessee to grant such charter as is now
demanded in behalf Of the Planters Bank.
The corporators Of that institution, the most Of
whom live out Of the State, come before the Gener-
al Assembly of Tennessee. asking it to grant them
extraordinary privileges and powers which are not
enjoyed by our own citizens
They ask fer the privilege Of issuing one dollar
and half of their credit notes for every dollar OF
their capital They have capital whatever with
which 20 redeem one-third Of their notes. Nor Is
the private property Of the eorpcrators liable under
this charter for the redemption Of these notes They
are so much worthless paper floating through the
channels of commerce for which no human being on
earth and not dollar of properly IS responsible
And vet the Bank is permitted to charge the citizens
of the State SIX per cent for lending them these
worthless. irredeemable rags in exchange for their
own paper far the payment Of which their indIyld-
nal property is liable The Bank is thus enabled to
realize nine per cent its actual capital by means
Of loans OF discounts It's profits on bids ofeGehange
are much larger amounting in many eases during
the last suspension to forty or fifty per cent on the
captal invested in bills. And yet, while enjoying
the privilege of realizing such enormous profits from
the people The corporators Of the bank under the
proposed charter incur individual liability for the
debts contracted IN the course of trade. They are
pIaving at a game of heads win tails you lose. II
business is prosperous. the corporatcrs pocket the
4rofs Ifdisaster comes the noehoders must suffer,
for the individual estates of the stockholders of the
hank. who have grown rich from its profits, cannot
he touched for its debts. Where in such case, is
the innocent noteholder to look for the redemption
of the paper of the bank: The capital of the bank
amounts to only two-trs of its issues and the pro
rfy Of the stockholders is liable for their pay
,aent OF course one-third of such issues are dead
loss to the people in case of the failure of the bauk
which has been realizing large profits from their
earnings in the seasons Of its prosperity. Should
the representatives Of the people Of Tennessee give
charter on such terms as these they will be false
t the interests of their constituents We donot be-
leTe they viii do So n
Nor can we believe that the Legislature Of Ten
snessee will consent to grant another urePe dia5e
charter to a bank which is even now living IN de
ance of lis authority after violating the pro
visions Of its charter and closing its doors against
Its creditors refused and SIT refuses TO yield ODE
ience to the law of the General Assembly intended
10 protect the people against such wrong and OPP
preston in the future. 1t can hardly be supposed
that the Legislature will again invest tins institution
with the same sovereign power which il has just
sed to the manifest injury of the country; and 1t Is
unreasonable for the corporators Of the Planters
Bank, who have just taught the people of Tennes-
see the fatal folly Of granting charters Of incorpo-
ration without rcservng the power to alter or amend
them when the public interest requires tit is I'M
reasonable for those corporators to expect that the
members Of this Legislature disregarding their
pledges TO their constituents, viii again cothe them
for twenty years with chartered privileges, which
can neither be changed modified nor abolished, how
eyer oppressive they may become to the people
We shall continue our examination Of this sub
sect ID a fnture issue.
An Act to Renew and extend the Charter of the
Planters Bank of Tennessee.
Introduced by Mr. TRnBIE, of Davidson
WHEREAS BY an act of the General Assembly of
the State Of Tennessee, entitled An Act TO Establish
the Planters Bank of Tennessee" passed November
18th lS33 a body polite and corporate was cstab-
lished to be styled the Planters Bank Of Tennessee,
with certain privileges and powers. duties and OBJ
legations and with certain stpulations and pPovi-
SOS regarding penalties and forfeitures. 10 continue
until the lsI day of January, 1868, and no longer;
and whereas under AMI by virtue Of said act, the