Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-12-08
GOV. magorrin and Ihe Banks.

We regret that we have not space for all Of that
portion Of the message of the Governor of Ken
tueky relating to Banks. 1t is gratifying to observe
that upon this subject the same healthy tone per
vadas the messages of all our Democratic Cover
mrs to their respective Legislatures, since the last
financial crisis in all our sister States the system
of reform is struggling to correct the abuses of mo
uopoIies and to relieve the people from their over,
grown capital and power. We trust that Tennessee
will not be 2 laggard in the race.
The following extract from the message of Gov.
M,GoFFrN. embodies sound doctrine, and should be
read with interest:
The Constitution of the United States recognizes
nothing else but gold and silver as tender, or as
,,e5um ot exchange or a standard Of value. The
nearer YOU can reduce the circulation IN paper TO
the actual wants of the people and the amount OF
snecIe IN the vaults Of the banks the better. The
dangers of these institutions would be greatly les
sened if they were required to Issue dollar for dol
lar ONLY. Habits of luxury. ldlencsS and eNtraEa-
gance would not be cngendered. The cupIdity of
the stockholders and the spirit of speculation would
he checked fluctuations IN trade would be prevent
"a Driccs would not be elevated or depressed by
the expansious and contractuns which have disas
+ronsiE 10 the people marked their management
throughout the country. They ,the banks) should
10 kaDt entirely under the control of the people.
TEa naoplc through their representatives,, have
a,rdpI np5er the Constitution of life liberty. and
,,ronertv Why not give them the control of the
hanks There can be no danger IN trusting the
neope with their control whose interests they were
created "a secure and whenever they lose sight OF
tbese-yvhtneyer they become the agents OF wrong
and mi~ruc. and Prey upon the community ihey
were ,rt.ltgl % protect they should forfeit u'ef
charters and hc abolished Too much vigilance over
or scrutiny into their affairs cannot be exercised by
the Legislature. Il might have been wei TO nave
appointed board ut supervisors over them, to Visit
them guartery and report under oath, to the Gov
trnor tteir condition. lou could then have ascer-
tanned til amount of circulation. debts deposits and
liabilities, every tryc months and whether or not
they were acting within thg limits of their charters
These suuery5sors would have acted a check
when II Adler strong temptations to make eXtraordi-
nary profits for hc stockholders either by over Is
sues OF their paper in violating the law in deal
ing in bills of exchange.
Bank dividends have become SO large and uniform
in Kentuyky that the stocks Of our banks have run
m 10 enormous prices is this a good a bad sign
60 far as the Interests of the people concerned
The profit dividends aud IN large reserved and
contingent funds comes out of the industry of the
eonle at last Under the strong temptations To per-
ons IN make combinations 10 get similar charters in
-. ~ secure the stock of new banks, which would
,oN ordinary profits. As they suppose and the
fy 10y, ,f which would advance if these diyi- {
SS -, realized there may be efforts made 10
I,otoy more banks by the Legislature, and to in
1905 tIe circulation now believed te be amply
= a.; - moot the legitimate wants of our people. 4
80 Fi :. would bring ncaculabe evils upon
n o,,I W. have banks enough, and too many
let Us have more.
10 oUT nresent banks had been prevented from is
- LaIs III less denomination than $40, and had I
been compelled TO redeem their notes at the counter
,bere they were issued together with the notes OF
ali the banks they put in circulation, Il womb nave
been better for the laboriLg classes, and for he In
terests of the whole people.
In order to keep up the credit of our banks and
t,e currency and credit Of the State, sound cur
,,encv and a healthy condition Of our trade,
would depore the passage OF any more bank char-
e. and would certainly withhold from them my /
a,c+ion Nuch time and money has been wasted |
IN Ieoisating for individuals and classes, and in
basty and inconsiderate legislation toward the
close of a session, when the important business OF
tbe State has been postponed at its commence
.aent: and while ] entertain the prOtoundest re-