Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-05-13
REPLY OF THE STATE BANK.
BANK OF TENNESSEE,
Feb. 25, 1856.

BANK OF TENNESSEE,
Feb. rs, 1856.
To the General Assembly Of the State Of Tennessee.
The undersigned. the President and Cash
icr of the Bank of Tennessee had the honor
to receive from the Clerk of the Senate, on
the 23d inst, the copy of resolution request
ing the Presidents and Cashiers of the Union
Planters Bank and Bank of Tennessee, TO an
swer, in writing. "When, if at all, they intend
to discontinue the issuance of notes payable
at any other point than at their counters,
and that said officers be requested to indicate
their policy in that behalf"
In compliance Herewith we have the hon.
or D state: That the issues of the Bank of
Tennessee and its Branches are now redeemed
in gold and at the points designated on the
face of each note-are received by them in
payment of liabilities. and re-issued upon
new loans or discounts without regard to the
place where payable. The opposite policy,
that of issuing notes payable at the counter
alone, would involve the Bank in much use
less expenses as well great and unnecessa-
ry risk. The Bank and Branches must nee
essarily receive the notes of each other in the
payment of liabilities to the Bank; if not al
lowed to reissue in making discounts and
loans, would be compelled to send them home
for payment in the precious metals, which
would require the employment of numerous
agents for the transportation of the money
from one To the other, at very heavy ex-
pense to the Bank with all the hazards incl
dent 10 such business, and without benefit
to any one, except those engaged in the bus
mess of trading in the precious metals. The
adoption OF such policy must necessarily re-
duce the business as we'll as the profits of the
Bank one-third II not one-half of what they
are at present, and to that extent limit the
ability of the Bank to serve the people
The Bank of Tennessee could not make all
its issues payable at the counter in Nashville
without d radical change of its present organ
ization, giving il the entire control of the Of
ficers as we'll as the capital of the branches
such as now possessed by the Union and
Planters Banks over their Branches Such
concentration OF the precious metals In Nash
Vile that policy would require. would so
seriously affect so many interests in other
sections Of the State, that il is hardly proba-
BILE it would be sanctioned by the Board of
Directors, even if they bad the power, without
the express authority of the General Assem-
bly,.
The redemption of the notes payable at the
Branches by the principal Bank in this CITY
in gold and silver, would require the funds of
each Branch to be under the control of the
principal Bank, or would require a suficien-
cy OF the precious metals TO be kept at the
PihOiPai DAMN tof tnat purpose, US well as AT
each of the Branches. The notes of the
Branches are received here and by each other
as cash, in the payment of debts, in the pur-
chase of exchange. or in the discount Of notes,
but If gold and silver be required, the holder
must apply to the Branch where payable.
where ample funds are now provided Tor
their redemption.
For these reasons the undersigned, without
having had an opportunity of consulting the
Board OF Directors since the reception Of the
resolution, express the opinion that no mate
rial change will be made in the policy of the
Bank upon the subject indicated, without
further authority from the General Assembly.
Should, however, the interests of this Bank
aud OF the people require change in the
policy of the Bank In this respect, the Presi-
dent and Board Of Directors would not hest
tate in exercising ail the powers given Ia the
charter, to meet the public wishes, without
regard TO the policy that may be acted on by
other Banks.
We are, respectfully, your obediens ser
wants,
c. JOHNSON, Pres't.
JAS MORTON, Cashier