Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-12-10

I'D IN anybody Is 20 blame it is the board at Men
IBIS, azd not the parent beard. I presume Il
'eard q Memphis sre doing all they can ha'
C doubt the counter note system expresses them
d9es ether banks.
presume that everybody knows hat themoI
\ y which any bank gers the amount Of It's real cil
.hlatIcn is 70 first take It's registered circulation an
'ubtraet therefTom the amount in vaults, aud tina
slsss the Outstanding or real circulation.
4 = dOa { believe then hat the pressure In mon
y matters is eaased By any concerned acton Of al
tis henks, or BY the voluntary action Of any c
| taen4 knew TIA The operat on OF this eoustC
aoie system is to render The larger part OF the cir
| silati Ct the BsRk Of Tennessee useless TO thi
csnmanity, By kseFing it in the vaults Of bank
81 travelling to points whore i can be paid out Tn
Presid nj tells tbas the hraneh notes oontn-
ually coming in. L will certsiRly BE a very exps
sive operation 10 send them back daily to ali thew
rious points where payable, and Jet they are q ad
capital IN il they ere seat back. The whole erca-
lation II tie Bank So 279 PCS
Ia possession OF 1 sos, 6ss
Actual crcu atoa..... =. 81, 800 SOS
admit that porliOn Of banks registered cir
cnlatiOn shonld be in The bank, but certainly ROT
the proportion Of SO 600 IN, 70 81. 300 900 0uf
Some persOns may as, why not loan out more'
fhs aDsWes Is thet il is not q points where il can
Be paid GU. The ulk Of cireu.at on IS always
travelling back to points where il is available. l
take double the bank capital and circulation te
the sane business The President of the Bank Of
TENNESSEE has informed "a that he had over naf >
million Of branch notes on hand, and should ne
>end Them home he is doing constantly, they wiz
be constlnily returning through the merchants %
Il is agzo charged that the Planters aad Union
Blnks are contracting their eircuadoR TO produce
hard tines, in order that We nsy be forced to re-
charter them. Leu zee htw tast is. The PiaR-
lers' Bank had over $4,000 mere in bills and
notes on the 1st Of October than hzd Isl 0cto-
Der, ls98 and since TIE lei Of 0steAer last t has
still further increased It's loans, S44i 000 Bot
the Renlemea say that the cireulatiOa Is less Il
Is true il Is me- less, but they have net taken in
the circulation without paying our Its equivalent
and this Of itself G5ad moi have Frodueed hsrd times
II they redeem their ci5 eulation by e1rtTassiEg
their loans, this would produce hard times; but We
zee that they haze been Increasing heir ins Of dis
counts all time. We see in tbese, % IN the stats
Bank that the specie has been falling OF; sod here
we discover the reason why the circulation is less
than formerly. L you'll Ger anly be very bad pol
icy in any bank to increase its circulation when its
Aa examination Of the Unioa Bank will show
state C facts Of sane eharac:e7 as the Planters,
though not to the same extent. These two banks
have certainly used al effsft 20 extend accoumOds
lions to The county. The books Of the PisnieFs'
and Union Banks show that they had on the Esd
than they had on the 24th November, 1853.
But it nsy be asked if the banks are doing tAe
usual amount of dise0uniing, what makes the times
so hard? L. cannot denied that there is ooBsids
rable slringeBcy the money markets Of this State
The first cause of this 10 In the operation Of the
counter system u2an the state BaaE, running Us
circulation into the ofcss Of the banks at different
points Waere il cannot be paid out Tho contrac-
lion of tha circulation Of this bank has like ef-
feet upon other banks. Soma Of the b8uks OF tie
Stale have wound up. and others are 10 process Of
liquidation. lush Of the private capital OF our
State has gone abrosd ~ Ipves Rtnt, driven out
by the stringent ints rest laws Of cur Stale. The
crops have not gone torW4d arl andin as large
quantities as usCal. The balance OF trade II mean
The rational tra5ej is against us. causing cOEtia
ual expectation Of Specie has tSs effect to keep the
country drained Of the precious metals.
When gentlemen talk of bank reforms ara with
ther; for We wcu d be ignorant indeed if We could
not Learn wisdom Dy experience; but when they ssy
they learned Z all as-iast session. mast disagree
win them | lhink there has been lessons taught
and learned since last session, and one Of these les
sons is that the bank act Of hs ssiob so Tar as
the counter bole system is conoe'ne1 went too far
that il is beautiful system N theory but too hard
for practice at this time. They foand the banks IL
trouble in suspension; ard instead OF legi=latiEg
10 relieve ami strength them, they thought 1t was
their duty to make war on them The banks were
not in suspensicn frem Eeaknsss, but Dseause tney
Our banks we're much stronger than the Kentucky
or South Carolina banks we're
LISA fine thing that sUme Of the banks had ehar-
tered rights, had yesled privileges that protected
then from thai radical Legislature, or this count
would haze ere this the hardest times ever ex-
per. need ia Tennessee Had ali the eask charters
been realable in their natures, Would have rs
inevitable ruin If relieved By called session Of
tine Legislature.
Ia Ierisai6g for the note holder i. will not DO to
wholly neglect the Interest Of the bank. II 7Ou
takc-thissbarroF view Of the question, you will 50
cripp e the bank that it eanuot afoid aeeommoda>
iious to the borrower, or il Re is already borrow
er be sil re broken down, because the bank Is IN
able 20 Indulge hiD. rs- t-r
Thai form Of counter note currency proposed ~
the bill in would relieVs the pareat bank BY
ailoHisg it 10 pay cut iis own eouo er notes Of
branches. but MS would give 10 relief 10 the
branches Whatever Il relieves the customers Of the
parent bsus, but viii afford relief 10 tire borrow
or Of The branches. That bill still esnhnes the
branches to their eou9ter notes, that these notes
may be ssattert al the State, and even carried
| by travellers to other States, while the parent
bank can use ali the notes OF whole institutions
ask those members who re! resent coanties hsVin
branches, are they willing for their people TO be
| oppressed? While those vino happen 20 be lucky
enough to live around parent bang shall be Keller
1 ed The amendmeat sfer, while 1t sticks subsan-
italy 10 TIE counter note system brings relief Il
| all / can't see fhat aDy possible VduseN cONiu
arise in permitting branches to pay out the notes
of the priaeipal bank which may have received il
the due course of trade. If tie branch receives
! uots or bank bill from one customer end then pay
it out TO another the bank does not by this act
~ the mole farther frOn the piaoe It vas pay tel
than when il received 1t. II citizen Toloniar 1
carries bill from the point where pay abe, viii yo
compel the bank to carry it back home every tim
the bank may see IL Ii this duty is imposed uPo
IL il will be employed IN carrying about its pape
more than half Us me. TEls policy WSald les
the bauk to refuse ngte not payable 81 its eOunte
on deposit, or in psymeat OF a debt due it-for a
such paper would net only be dead capital until
could he exchanged: tut the bank may be called o
nv the depositor for counter notes ct any tine In
nTessnt form Of counter note system works bar
upon CIsrkssille. On account Of its locality an
tSc cbarac er Of its trade Il Is situated near u
Kentucky line aod receives the Dnlk Of IT'S trad
from that state In addition to heavy trade i
aour nark and other farm products, two and 9
millions or dollaTs worth OF tobacco come into th
Clarksville market annually, .---.- 49,
Nowtbese Kentucklans viii sell their tobacco fo
counter notes, and either draw silver al carry
Kentucky banss, or put the money IN their pockets
2 not keeping their deposits 10 much extent in GU
bsnks We do net so much object TO their DRAWN
speeie as we ere afrsid that We Eonid lose sigst
opr oounler notes and have no material upon Whic
: We can banE. Oar trade is very heavy in %
sp,isg We sometimes use more than SlOO, COO !
4 n Week TO pay Ter lcDacco II b1is SthhteI not
e currency is continued the banks would be unabl
10 furnish the large needed on such short nc
3 ties We have three times the use for money j
: The spring than any other time OF ear TIE op;
ration Of The strie, counter note system IS to kee
the capital uniform 10 respective baak districts ii
I wear round. I osjset to ibis want $1,000, 90
in ClarkssiIlo in the spring. 10 buy the baceo
? this business over, am wiling for come ospna
/ ba used in Whes. and other pscduee, in the fsl
and winter in cotton aud again IN the spirg
tobseeo. The Nashville, or psrent banks alTs,
lacrosse the capital Of the ClsTksvlls branches vii
part Of their capital TO buy bills whsn the t9bac,
8 trade is heavy. Bat under the counter system III
could not be done, fer the branches could not ps
! parent bank notes. IL the couoter noe 81 stem
o last session is preserved Clarksvle will be cor
t psllsd to have large increase Of psr@snent ban
ospilal or bste iis trade greatly crippled.
believe hat the plan Of mekiBg all notes pay
bic al the Friacipal banks and permitting Il
Y branches 10 receive and pay them ou;, would b
good a de as any that conlf be adopted.
: tails plan Should sdol d. due regard shou
be had TO the Interest Of the three natural division
Of our State. | expect come near lsgislafil
\ for three States any deii5erativs body in Il
: Union, aud this is one reason Why thers are
many confising views among us. Our nteres
are IN May instances diverse, aud il IL difficult
: frame lay general in is nature 70 suit all.
!, | pro miss East and Wet Tennessee. 50 far as q
oonssFoei 70 vote literally this respect, chou
il even he &c the axteut Of giving to each the pri