Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-07-12
TUESDAY MORNING. JULY p, 1850

The Patriot in its effort to avoid the force of the
facts disclosed in Mr.. FmLMoRE's letter, has be-
come involved In perfect maze Of confusion. 1t
said on Friday that the policy Of reserving power
70 the Legislature to alter repeal acts of incOrpO
ration had been abandoned in New York. We have
ehoEn that under the present Constitution Of New
York, every act Of incorporation, whether general
or special in thst State is subject to modification OF
repeal by the Legislature The system is now in
successful operation there as stated by Mr.. FILL
MoRR, and "the reserved power of the Legisla-
ture over Bank charters has never been abused"
But the Patriot now argues that although the Con-
stitutOn does provide that all special acts and gen
eral laws of Incorporation may be altered from time
to time or repealed the corporations operating
under the general banking law Of New York cannot
be abolished by the Legislature. Now, the act of
April ID, 1858, entitled "an a,t to authorize the
business Of banking" which is the only Law under
which banking associations be formed or carried
on in the State of New York, expressly provides
Tsection 80 that The Legislature may at any
time alter or repeal this act" When the Legislature
does repeal the act the only authority under which
banking institutions can exist there, is withdrawn,
and, Of course they cannot continue without such
legal authority.
But the Patriot says that the free banking law in
this State has been repealed, and yet the Banks
organized under that law continue. True but our
free banking Law did not to the Legislature
the unlimited power Of repeal, as do the General
Banking Law and the Constitution Of New York.
Ths free Banking law passed by the Legislature of
this State in 1872, authorizes the establishment
of banking institutions for period of twenty years.
and then provides SeetiOn 49, ''That the Legsls-
ture reserves the right to amend, alter, or repeal
this act IN such manner however, shall do no IN
jEry to the corporations, destroy any rested right
acquired BY heH."
The last portion Of this repeating clause pro-
viding that the Legislature shall not destroy any
vested rights which the corporations may have ae-
aured, renders it impossible for the Legislature to
abolish the corporate privileges Of the banks actual
IL In operation under that law until the expiration
of the time fixed as the period of their existence
There is no such limitation of power in the law Of
New York "The statute" (that Of 1889 says
Chancellor KENT in his Commentaries, VOL page
29s, conferred the power of Free Banking, and
did not create any monopoly, nor secure to any
association, privileges which might not be enjoyed
In like manner by all others, place them beyond
ths entire control of the Legislature"
That is all we ask in Tennessee. We only desire
10 reserve to the Legislature entire cGntrOI" of
banking corporations. We wish to incorporate into
every act Of incorporation granted in this State the
very clause Of the general act of incorporation in
New York, which provides that "the Legislature
may at any time alter or repeal this acts''
The Patriot argues that this clause does not en-
power the Legislature to discontinue the banks Of
New York. Then similar clause in the charter Of
the Planters OF Union Bank, would not according
60 the Patriotic reasoning confer any power upOnthe
Legislature to discontinue those institutions. Why
then does the Patriot object strongly to the in
corporation Of this provision into bank charters
Why has 1t argued earnestly that the reservation
of power to the Legislature to change, modify or
abolish bank Charters will enable the Legislature to
destroy the banks? The New York statute reserves
that power to the Legislature, and yet the Patriot
ssys that the Legislature Of that State cannot abo
ish existing banks.
The Patriot was nearer right in its view Of this
subject, before it undertook to explain away the
facts contained in Mr.. FILLMoRE's letter. The IN
limited reservation Of power to the Legislature to
amend er repeal acts Of incorporation whether en-
bodied in general or special act, gives the Legis
lature as ChAncellOr KENT says, entire cOntrOI"
over the oorpOrstions-s control which the repre-
EentatiEss Of the people should always retain over
the Institutions Of the State, aud which they have
never given up without serious injury to the public
Ii is by retaining that control that all the great
commercial States Of the Union have secured
sound and reliable system Of banking the Legisls-
ture having power to remedy any defect in the
bank charters which experience may develOpe, or
to destroy them entirely if they become oppressive
to the people.