Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-10-24

The portions of the School Fund hereto
been transferred to the mother Bank, and
the Branches supplied with cash in lieu, SO
mai their books In future will exhibit their
? entire capital as cash. The whole School
Fund in the Bank amounts to Sl.12O5S IA.
The report states that a comparison OF the
Y statements accompanying it, with those of
preceding years, show a large reduc-
- ion in the business as we'll as profits of
the Institution. The profits for the year
ending on the LIST of July, 1859, compared
with those of the preceding year, " show an
actual loss to the State of Sl97, 954 g." A
considerable portion of the Report is occu-
pied with an explanation of the causes Of this
unfortunate state of things. The last Legis-
lature enacted laws imposing restrictions
upon the Banks and requiring them to resume
the payment of specie on the list % Novem-
Der, 1858. The Bank of Tennessee accepted
these restrictiOns-the Union and Planters
Banks did not. The Bank Of Tennessee de-
termined upon line of policy which would
enable her TO accommodate the people, and
resume at the time required by law. The
Union and Planters Banks resolved to re-
sumo on the LIST OF July. and invited the
Bank of Tennessee to join them. The invita-
tion was submitted to a convention OF the
Presidents of the Bank and Branches and
declined ; it being regarded as better 10 ad-
here to the policy already adopted From
this moment, the Bank of Tennessee was de-
nounced as unsound, and the denuncations
we're kept up 80 vigorously az to prevent her
from carrying out her line of policy and re
sumption was determined upon, and carried
into effect. Notwithstanding this the clamor
against the Bank was continued. The set
Ting of balances between her and the old
banks was made the occasion of drawing
from her from the LIST of July to the 18th OF
November, the sum of Sl.3l3, lac 80 in
specie. The President thinks the heavy de-
mands made upon her for specie were the
result of a determination TO force her into a
second suspension. and a consequent forfeiture
of charter. He does not, however, doubt the
statement of the officers of the old banks that
"no unusual and unfair means were resorted
TO By them 10 bring such demands upon it,
The effect of these demands was TO cause
heavy reduction of the discounts of the Bank.
and of the profits to the sum mentioned
above, in one year. Another effect was the
Injury done TO the credit of the State in the
depreciation abroad of the price OF State
Bonds.
The Report recommends again the adop-
ton of amendments of the charter of Bank
suggested two years ago-one OF which is,
the placing OF the branches under the control
of the mother bank; and another, to author
ize the courts, upon certificate OF the defalca-
ton of any debtor. to issue an execution for
the immediate making Of the money due as
in cases of money of minors loaned by
masters in Chanccry.
A repeal of article 1914 in the Code
tablishing the counter note system is recon-
mended.
The act of January 49, Section Z, prohibits
the banks from paying out any notes but
their own, payable at the counter whore is
sued or paid out; but to avoid the evil effects
OF this, an act was subsequently, passed, nu-
thorizing the banks which should accept he
restrictions Of the former act, to receive and
pay out the notes of the Bank of Tennessee
and branches. The act OF January was in
corporated in the Code, whilst the subsequent
modification was not. This oversight has de
prived the Bank of Tennessee of important
advantages, and entailcd upon her serious
evils. The Report states them as follows
By these provisions. the Bank and its
hran cl.aa la asIf
able ut the counter, whilst by other laws,
they are compelled 10 receipe in payment oidebts
the notes of each other; and cannot, with "A
proper regard for their credit, refuse TO re-
ceIps than on deposit.
The notes of the branches in the course of
trade and business, will necessarily coucen-
trade at the principal points OF business.
Thousands OF dollars of the branch notes
are daily paid to the Bank in Nashville, and
cannot be used for any purpose until sent to
the branches where payable. the gold obtain
ed and brought back-so with each of the
branches-lhus mourning heavy additional
EXPRESSES besides the hazard OF transmitting
the gold from one to the other. The Bank
before the middle OF September. found itself
in possession of more than half million of
It's branch notes and yet unable 10 discount
dollar for its customer; its ,psu notes were
in circul ation and could not Do. had for i'm
mediate use. New notes based upon the cur
rency OF the branches could not be safely is
sued; and hence the business OF the Bank has
been in a great degree suspended since the
LIST of September. The same thing occurs
with every branch; their circulation is gcncr-
ally in the hands of the people; the debts
collected often the notes Of the other branch
es, aud cannot be used until gold can be OBJ
tanned for them. 4
The Report regards the restrictions as i'm
proper for Banks with branches over which
they have no oontr oil. and says their opera
tion upon the Bank of Tennessee - has been
TO compel ii. at ITS e1pense and risk, 10 br,ng
gold from the Braaehe, 10 Nashville for The ben,ff
Of Brokers and other BGlks."
The notes of the Bank under five dollars,
have been withdrawn from circulation as fast
as possible and destroyed but their place
has been supplied with email notes of the
banks of other States. II Is apprehended
that AFTER the LIST Of January next, when no
notes under ten dollars TO be issued, the
same result will ensue, unless some steps ARE
taken by the Legislature to prevent il.
1t Is suggested that il II shall be the /" de-
termination OF the General Assembly TO con-
tinue banking as il has done for the last
twenty years, Il would seem wise and proper
for it to assume the exclusive control Of the
paper money used In the State. as scon as the
same can be done consistently with the char
tered rights heretofore granted.
{" The paper money used in the State should
be made by public officers. having no interest
in the profits arising from its use, and the
amount put Ia circulation should be regula-
ted by law, and the State made responsible
for every dollar permitted TO be put Ia cireu-
alton BY ils authority. Proper restrictions