Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-10-12
The Opposition Papers aud the Governor,s
Meaaara

trying their teeth Upon the Governors Message &
seems not to be of material very favorable TO mas
tieaon as they have not yet attempted any divis
ion or separation of its constituent parts but
themselves with swallowing it whole and splitting it
up again. good deal altered by the digestive mens-
rHum il got mixed up with and then calling attention
TO the not very attractive mass, saying, here's a
message from Democratic GOVERNOR when they
would say with more trsth here's an Opposition
attempt at digestion
Of course ii is the part of the message relating
Banks which is discussed. The Patriot makes short
work, saying that the Governor recommends that
the Banks should be restricted oct Of existence The
BG'sr makes longer TRADE, but comes to the same
conclusion. Neither of them, as we have said, at
tempts mastication; neither of them attempts to
show which are just restrictions and which are to
be so runous that Banks stand no chance for exist
enee under them, though both admit that some re-
strietions are necessary. No. it is more convenient
process 20 object &c them n.asss and express the
belief hat ~as l0lOle they win be fatal to banks and
the banking business"
They are right This Is the one advantage of this
system Of h1Uhg no principles. and being their only
advantage they are right to make the most of it. Il
they had q position Of their own to take if they
were obliged to define their own policy regarding
the Banks, they would feel that there was respen-
sibily on both sides,-a heavier responsibility in
deed In leaving the Banks unrestricted to prey upon
the people, than in devsing restrictions for the PEG
Piles security. But having no principles and no
position of their own they only obliged to take
up one side OF the question Being merely the Or
POSITION, their simple policy is 10 object 70 what the
- Il.
spOnsibIity Of keeping things IN stats qso zng left
10 fall on what shoulders it may.
We must take them as We find them, however.
The banks win have TO give up, if these restrictions
are imposed and we shall have none in their place.
That is rather wide proposition there seve-
raj and diverse restrictions proposed 10 some of
which the Opposition papers havO already given
thsiF assent, necessary; the redemption of notes
at the counters from which they were issued for
stance, and others. When, therefore, thy make
sHch sweeping assertion. it weuld seem resSona-
bic thai they should state which of the res1ctions
will be SO ruinous They have not done so, how
ever, and We must take their proposition SiHy,es
glsislddis, in il unsdorned beauties
We shall take occasion to enter into some of the
details which both the Opposition papers have
avoided. But apart from these be ii observed that
she above assumption msfe by both the Patriot and
the Ba's'sr, is dAect attack upon the credit and
character of the existing Banks. Ii tho business
done by the Union and Planters Banks is of such
nature that It must succumb under system of re-
strictions such in force in every State the cur
-ency Of which is worth looking At then tho opera
I1ors of these Banks must be utterly unsound-to-
tally incompatible with the safety of the note
holders
If the assumptions of the Bonner and PdriOs are
correct, then are these Institutions thoroughly IN
sound, and the sooner they are swept away, the
better for the State. Deliver US from friends,
should be the prayer of the Banks for their friends
in making out upon which to b. for them,
certainly assume position for them utterly &eon-
sistent with their credit
For what are the conditions under which il b rep
resented to be impraeticabIe r the Banks to go on
That they should have thor charters reYocable at
the discretion of theState that they should redeem
their notes at their counter and that they should
issue more than two dollars in paper for one they
can show in specie. Now these are the conditions
under which banking IL conducted in every State
whose currency is sound and if the Union and
Planters Banks cannot go under them, we believe
their withdrawal would be advantage rather
than injury TO US we believe that they would be
glad to 60 on, for with such inexhaustible prOduc
hive resources the State possessed, agricultural
and mineral we find it impossible to acquesce in
The belief that financial business cannot be conduct
ID upon q basis which is found remunerAtiVe in
JtheF States and for the same reason if they should
,onclude 20 withdraw, we have no doubt whatever
hat other capital would be Immediately invested in
10 profitable business as that of conducting the
financial affairs Of so wealthy community.
Those who are SO excessively alarmed at the idea
hat the Banks are going to retire In disgust
mated by the idea that the Banks are institutions
Tor lending money at dx per cent, which valuable
win be withdrawn unless we bride I
hsm to keep sp a ssoraiisv business among US with
,xtEsvagant privileges.
x u q great deluEion; we have 20 look only
tie way beneath the surface to discover that they
re much more of borrowing than a lending insti-
utioR L. Is true they discount our paper, but what /
yithf Their own paper. You borrow, say $500, Of i
he bank; you receive il in their notes. and psy ak
,er cent on the whole Of It This is not advancing
money for interest il Is simply assuming your debt
you owe A $500 and borrow Of the bank their
otes TO that amount to pay it, Thereby they put 4
st no money. They do not pay your CREDITOR they
imply promise to pay him, and their credit their
ronGssfo pay is more widely acceptable than yours
our creditor il satisfied snd in his turn dispose
{ the notes but whoever holds them the bank is
sLtor to him for that amount, snd has virtually
Orrowed his money, 80 that you pay the bank six
er cent upon money it has borrowed from your
reditor, without paying him any interest upon it
Now fit were not forrcstrictions such as are nov
roposed az the money they get interest upon would
e borrowed moBey, and bank might be drawing |
lterest upon money borrowed from the public to an
nlimted extent or least TO eXtent only limited
= its credit And this il not mere suppOstion, but
- been done in tbis very State, Notes have been
In other words, upon capitol traudulenty
legged toexst And it is this privilege 0f issuing
Unlimited promises TO pay with limited means Oi pay
q. and then using them as money, and drawing in-
rest ON them from persons TO whom they have been
iYsnced-this we say. is the privilege which Cow
,RRIs' Message recommends should be restricted
NJ how fars Simply, that for every two dollars Of
,omise 70 pay which the banks issue they shall have
" dollar real nseaey to psy ii with In other words
,pnosinr the bank has notes TO the eKtentof $780,
70 in circulation on all Of which it drawing inter
u IL uHs beth ADVANCED VHiy WV <
10 Is money actually invested or to lend you the
500, they have actually advanced only 800, and |
proved the rest from the note-hOlder they re-
,iVing from you per cent upon the whole amount
SIS per annum, which is in fact per cent on the
oney they really advanced q
Thus, banking is really system of borrowing
oneY without interest and lending Il out at :
.srent; and If the Union and Plantors' Banks I
,otld really resent so much the restriction Of c
wing TO furnish 500 of their own money s
m sveET e20O they borrow from note hold q,
= without interest, while they draw interest Y
the whole, as 10 retire in Indignation, we think =
AZ this nominal per cent, but actual Is per cent
the capital advanced will be sufficient INDUCE +
ant 70 hiring out other gSsd men and trusty, who t
all accommodate us by borrowing our money for
,tbinp and lending Il out at good interest
This wouId have been our conclusion evcn n the
,oe,s Of the Bank vere limited to the rate Of in
rest we have meusoned; but II is well known that
Is discount business is far from being the most t
,,atsble Transaction of banks, as ms been shown
the statesman-like message which has been 30 .
yerely criticised We have only to add, therefore,
1T a. IA very far from being our belief that the eX-