Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-15
TENNESSEE LEGISLATURES.
SENATE.
SATURDAY. September I2lh,


SATURDAY, September 18th.
PRIvATE BANKING.-[Deferrsd Debate.
Mr. PAYNE said: 1t seems that We have to steer
between scylla and Charybdis this morning. This
| bill is about to be srangled between Ihese two
amendments. The Eenasor from Hardeman fNr.
Peters offers an mendment, and the Senator
| from Wilson (Mr. Stokes) Cffers an amendment
| in lieu just TT for the occasion. l would rsth-
er that the gentlemen would march up and kill the
bill than to seek by this kind Of amendment TO de-
stroy its power. 1t is very clear case that the
whole proposition is to kill the BILL When intro
ducsd this BILL the Senator from Wilson said that IL
hSd studied for fifty years, could not have sug-
gested scheme more Injurious to the banking bust
ness Of this State. II thus well accounts for his
amendment that he is alarmed for the safety Of the
banks of this State. But how to account for the
other am at loss to determine tsough it is very
clear that the whole effect OF the amendments is to
ruin the bill The proposition Of the Senator from
Hardemsn is that no man shall use anything but
bills Of the banks Of Tennessee under this law. Now
il gentlamen are willing that bank bills Of Other
States hall circulate here Why don't they bring in
proposition to wholly exclude them. But you allow
them to circulate here and then turn round say
that if you undertake to bring Outthe private ospi-
tai Of Tennessee you shall not use them. What is
the object of thisi It is emily going back TO that
original issue of legislation thar has been the
course of the State for half century. In the irst
psce, let me ask the Senator from Wilson why it is
ha we sre to be Pternay tied down to this species
Of LEGISLATION If am competent to decide Who
shall be my merchant in ordinary matters, Why
should wait for legislative gcd-tsthers to decide
for me who shall have right TO trade in gold! Is
there any reason-is there any common sense had
almost said. but will say sound sense-Or any
prInople If politicsi economy that allows me, nav
ing a thousand dollars to trade foTlands, horses or
cattle, as chooYe, and thea says th&t have not
sense enough 10 60 to the same perea ant ala oes
DO Nit thousand dollars and lake his cheek f9r
This Law has opsIa'ed ID create monoPolies IN the
hands of Banks and Of Brokers. Taere is where
the Injustice las been done. But the Law proposed
authorizes a man to do what be has legal right to
do-to take his neighb6r's check on New YORK or
Boston If | do so, and lose, II Is my business sLa
not yours. But here is q law WnicS Is e'ernaiy
trying play the guardian over every man. ~ II he
were incapable of managing his own concerns
Now dots sny one sav that il seek t. trade bin
of exchange on New York am not able to 60 into
bank and do it, and if am, there is no reason
why should not go to my neighoor Consult the
authorities from Aristotle to the present day, and
tell me why it is not to be allowed The worst oft
is that by this process this old statute standing IS
G monument Of legislative folly, dams up trade oy
throwing private capital into monopies. The evil
suly increases in proportion the pressure you put
upon it. l ask of the Senator from Hsrdemsn II
he really designs to kill this bill There various
ways of killing dog besides hanging him, but l
should prefer that this bill should be killed outright
rather than in this apparently friendly way
You have already passed Law that no agencies
shall be established to circulsts small bank bills.
Put it in this BILL if you choose that those sVsing
themselves of its privileges shall not be such agents
Note shsvers have already been the peculiar pets OF
legislation. They are faxed, to be sure, but the
borrowers pay it When . man comes TO borrow
money they tell him of the tax and charge him an
II tha mpnt
try to baing prvale capital into circulation 10 re-
duce this, YOU cry out, Banks are in danger The
leading strings must sill be kept up men, may
ba vilIing 10 take South Carolina money UheA
7 am in ficulty, and may save my property
by SO doing; but this amendment says, /" no, yeu
have not sense enough to make this trsde iet
your property GO" 1 nope the friends Of th!s Dill
ill At once xiii 4 these amendments and have .
fair izht on the bill itself. would DO vote Tor
il myse With either of the amendments proposed
Mr. PETERS said: The gentleman frt N Shelby
il altogether mistaken about my hostility to the
principal features Of the bill | am opposed 10
SEINE of the details. object to this particular fea'
turs giving to any person the right Of op'hloe Az
Office and dealing in bills of exchange. The reason
vby is that the person dealing would not act SO
much for the purpose of replenishipg his own COL
f,rs as fer houses in New York You knoG that We
have assailed the banks on this subject You x on
that planters have been nnsbis to get money from the
banks without giving q lien On forthcoming crops
which transfers them into mere agents for IT'S dis
position. The question With me IS E1etneF Se
shaI foster the banks in this State those in New
York for it is not to he presumed tbst the mep e.
Gagged in this business will always have fuHgs on
| hand. but they must rely on New YORK, Boston,
| Charleston or some other place. The gu stlon ls'
vhether We will keep our banks INTACT, or transfer
the results of cur produce TO others. That II the
| onIy res SOU Why offer the amen mel
Mr. STOKES said The Sc, a or from Shelby Is
ricot in supposng that / an the opponent Of this
hil do not conceive that the Legislature Of this
| state could do any thing that would 30 entirely
| mt the banks of this S s'e II the mercy Of tht
| hanks of the ueigbbOring States as by that bill
| asserted the other day that it would create 9
host of bood.suckers scattered over the State drain
4 inc the banks of Teunssses. beg the Senator moi
A underrats the importance Of the banking interes
of our State On the first Of July last, the baking
/ interest of the State amounted TO 81 ,6S4 600
The entire taxable properly OF the state-lands
slayes. and town lots being dedueted-Has only
SlS 900. Of the bank capital, i've milionl
was in The hands of borrowers at six per cont Th'
| remainder was invested in bills Of exchange a
about nine per cent.
| When the Senator has asserted that this State il
the only one which has not laws like the one pro
posed, challenge him to produce single Stat
where the same policy has been adopted. He hs
before alluded to thu policy Of Missouri hsV'
Is even more stringent than our own,
| But what Is the proposition now before the Sen
atef The Senator from Hsrdemsn proposes 81
amendment l propose one in lieu Of that, Il
which desire to call the at ention of the Senate.
The first proposition is, that those various per
sons engaged in discountiag notes, &C., shall no
receive on deposit or pay out the notes OF any cor
poration not chartered by the State Of Tennessee
] No bank or person chartered or licensed by thi
State is now allowed to pay out the notes Of any in
slitution not chartered by this State Does tn
senator from Shelby desire to giTs to eVerybod
else privilege superior to that given to the BANK
which furnish us our excellent currency, conSerti
bic at all times into geld and silVeri Tue object
TIE Legislature iu passing thsl law was to secur
| to the people Of this State the advantage Of CIT
| culstion OF their own banks, which should not b
| superceded BY the notes Of the wildcat banks Q
Georgia or any other s ate. If these are allowed
| ,rculaie il requires ShreWdness 70 see that the
will be . constant drain up n the banks Of Tennes
see and diminish their power to aid the people i
commerc, eli purposes
In the second place, propose that these Variou
associations shall not form little note-shaTng cor
Germs all over the State of tennessee. If underGn
the ope. ation Of this bill, any person would haV
the ght to cut note into a. ans rate bis peculis
fancy might dictate. Yet understood the Senate
from Shelby few days ago t. say tat he Was arl
aud arm with me for the purpose Of resrrsiOing thi
n te-shaVng system. propose in this ameadmeT
that these people shall MT be allowed to discOdI
any note bill Of exchange at any rate over that 40
fixed by Law II the proposition for eonvertion'
interest to per cent passes, gi~e them 'hat bt
till that passes propose some limit to che greed
ness vito which men would Engage IN this pul SUI
Ii this bill passes unrestricted, no man would IS
for banking privileges. No capitalist would d.
4. sire better opportunity han 10 act under tn
law, trimming sd curiDg whenever he mIgi
get j., to do. For hOW much osA he game
L ~ bankiHgf know tast our Democratic Cove
nor thinks that banks can-aDd Il IL not qsIse ce
J., tain whether be does not say they do gam fri.
eight per cent Bot me bis, DRY Of banking ia Tel
= nessee demonstrates beyond all controversy, th
the Governor ls speakit in diree' eOHtrsdicti.
o all facts. Few backs make more thsn SIX per Gel