Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-12-23
Tho Bank BfII-Pfograms,se FOR
Winding Up.

considers the same apothegm applicable to
Banks. Tire Bill bristles with points-sharp
and fatal; but each one brings q different
form of death. The sixth section provides
that if Bank shall suff,r its coin to run be-
low the proportion of one fourth of its entire
circulation, or its specie funds below one
third Of its entire liabilities for the space of
forty days together, il shall Immediately stop
its discounts. In this stage OF delinquency
diet Of suspended discounts is administered
as sufficient remedy. But il the disease should
yet prove obstinate, and the same symptoms
continue for over seventy-fye days in all. in
d any one year. then il is made the duty of the
Bank Supervisor to cause proceedings 10 be
Instituted in bis own. name, in the Chancery
Court OF the District where the Bank is loca-
ted, to have its assets subjected TO the pay
ment of its debts, and its charter declared
forfeited. This is the first death penalty and
ceremony, which, II will be observed, proceeds
upon asspteioa that the Bank may not be
able to meet lis engagements. The penalty
IL absolute and irreprievable.
Section twenty provides that II Bank
shall suspend specie payment and so contin-
ne for period OF one hundred and twenty
days in any one year, the Supervisor shall
forthwith cause proceedings to be instituted
In the Chancery Court OF the District where
the Bank is located. in the name Of the State
of Tennessee, to have its assets subjected to
che payment of it's debts, and its charterde
olared to be forfeited. In the first case the
suspicion of the possible inability of the Bank
10 pay, is regarded as just cause for death,
and the Supervisor is charged with the cere-
monies of the funeral, aided by the Chancery
Court as undertaken. But in the case OF sus-
pension, the offence rises to the enormity Of a
crime against the State Of Tennessee, and the
criminal is proceeded against in the name of
the State. But to the Governor Is reserved
che pardoning power. as in other case OF fell
ony. If the Governor be of opinion that
IL Is for the public interest that such proceed
ings shall not be instituted, he shall Dispatch
q billet to the Supervisor aud suspend all
proceedings thereon till the meeting OF the
Legislature. We are no. informed whether
the "prisoner at the barr is discharged on his
own rccognzance or otherwise, in the in
terim or whether the Bank is locked up, or
10 permitted to transact its ordinary business. |
whilst suspended or refusing to pay coin for |
It's notes. This is penalty number two, aud |
affords not only chance of reprieve, but the |
privilege of being arraigned before the "grand |
inquest OF the people, through Legislative |
Jury.
Section twenty-ihree is remarkable spe- |
eimen of a penal code. 1t provides that If |
the Supervisor" shall be of opinion that any |
Bank has exceeded its chartered powers or |
violated the same, he shall inform the Treas |
urer of that opinion and his reasons for il.
The Governor shall then submit the Snpervi- |
sors opinion and reasons to the Judges OF the
Supreme Court of the State. Al this stage, |
the delinquent Bank is endowed with the
privilege of making a statement under oath to
The Judges. The Judges then empowered,
IL THY desire, to hear q discussion of the mat
ter. Having considered, if the judges or
majority OF them should be OF opinion that
sh~re has been any abuse of power, or viola
ton of the charter of the Bank, they SHALL
without delay, give that opinion in writing to
the Governor. The Governor shall place the
opiufou III DuuSct VI iO' thS NAV
Legislature, and deliver it to that body on its
frat assembly thereafter. Whereupon the
Legislature "a0y repeal alter or abolish the
charter of such Bank" Then section TWEEN
ty-three proceeds: If the Supreme Court de-
elines to give an opinion, the Governor shall
call in the Attorney General OF the State in
consultation with himself, and they shall can
vass the merits of the Supervisors opinion
and reasons therefor, and if the Governor aud
Attorney General shall believe that there
has been any abuse or violation of chartered
powers by The suspected Bank, the Attorney
General shall file n bill in the name Of the
State against the Bank. in the Chancery
Court of the District, and when it shall be
legally ascertained, in this ,rag, that any Bank
has exceeded or violated its chartered pow
ers, the Governor shall report the fact TO the
next session of the Legislature. and the Leg
islature "may, thereupon, repeal, alter or
abolish the charter of any such Bank
Here the Supreme Court is made a puppet
o.; il is required to give opinions. in its dis
cretion, without n judgment and without power
TO enforce its opinion. II is called upon TO
decide a fact, which might be determined as
we'll by others, with view of operating on
the minds, Of the next Legislature, with a
view to procuring the alteration or repeal of
the Bank Charter. But feeling the evident
absurdiiy OF such requirement, the trainers
Of the bill inserted clause devolying the
duty on the Governor, Attorney General aud
Chancery Court, in the event the Supreme
Court should decline the service. In view OF
the complicated. int, rminaie aud inefficient
character o! these provisions, we cannot re-
gard it ms anything but weak attempt to
assert, and at the same time trammcl, the doc
srine of rcpealable charters"
We assume that all necessary restrictions
and safeguards for the protection of the peo-
pie should be thrown around the Banks that
che causes for forfeiture should be simply
and plainly set out, and that the redr s. OF
grievances against these Institutions should
lie simple. prompt, and as briet rs possible.
We believe that every citizen shonld be fur
nishcd with his remedy against Bank that
may wilfnlly forfeit its engagements with him;
and IL the course of the Bank Is such that its
from violations of it's privileges
and powers. will infet injury upon the pub
lie, 10 should he wound up a, speedily as jus
lice will allow. The method indicated in the
twenty third section of the bill wholly fails
10 come up to this idea. The roundabout
process which is proposed, with an uncertain
" of ever accomplishing the desired object,
a our opinion. will prove, in practice. deiri-
mental TO the interests of both the Banks and
he people-and should be stricken from the
Bill and such alterations made in the other
.,;o,. a., ,.ilt insar,. ,ha death of any Rank |