Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-10-25

Is TO be found in the violence and unfairness with
which If has been criticised by the class of individ
usls who are interested in unfolding these insttu
tons.
The Banks are very much dspleased with the Mes
sage-perehance from no less selfish motive thah
that the Message is not favorable to the BANKS
Their organs in their zeal to protect these lhsl'u
,ions from the influence which the Message might
exert upon the Legislature and the people have
chosen to misunderstood the language OF the Gov
,nor in order TO render it more susceptible to their
o-;,;oisms and. by naked assertions, to deride |
him a. an empric in the business Of banking OF
whose sublime mysterious they wouldi have us be-
Iieye none can speak with accuracy but the mitia-
ted Their arrogant pretensions place them IN the
d;cuous attitude Of saying to the world that those
who sneak favorably of our banking system have
;t claims TO wisdom whilst those who assall 1t as
nsouna and deserving to be corrected are mere lg-
,,orant nretenders But the great world without
the limit of this seconceit viii laugh at its rldlcu
Iona assnmntions. and scOrn the ayarice and self
jsbness that gives it birth.
The most salient point of attack in their estina-
,;op. seems to be that portion of the Governors
message which, after having shown that the prlma-
vleading and controlling purpose with the trainers
Of
+u the mower to create these privileged ncorpora-
tions, was ito promote the interests Oh inc p'O"'
20, those of the individuals incorporated" pro
ceeds 10 say;
y, the effect of the charter is, to clothe the indi-
yiduals with poJcefs and special PriGeegss usuay
highly beneficial TO them, and from which the pat
.nce Of the community are excluded. One OF which
& in banking corporations the priodege OF issuing
two or more dollars in paper Tor every oolar %, OF
tbei actual capital with the whole amount OF whoa
tbey discount the Of individuals at the rate OF
six' ner cent thus realizing from twelve 10
TWENTY-FIVE per cent per annum upon ther acluai
capita in this the least profitable part oil ther Du-
sinsss for they realize yet much larger profits III the
purclss. of bills OF exchange 10 illustrate WHICH
take the case OF the Planter who draws ms bil upon
New Orleans at thirty days. the bank discounts inc
hin a the rate OF six per cent per annuin rs inter
st in addition to which it takes one per cent from
the whole amount of the bill as exchange mus max
in,, the su,nle item of exchange equal To twelve per
cent ner annum: add the items oil interest anu eA-
chance together and it makes eighteen per cent per
apnuIn as the nroiit which the bank charges upon
.ba Loan of its notes and if it issues only two dol
Iors of its notes for Of specie, 1t makes me
round sum of thirtysiN per cent per anhum W!iiC.
the hank realizes upon its actual cdphd While hlui
riduals who do not enjoy similar privileges car
only +, 'ize six per Ce II per annum upon lhelIs
Int tbe 1,rotts of tins transacuondo not stop mere
for ut maturity, the bill OF exchange is PAM Dy 'u'
,IaDter in New Orleans and the fund placed 10 Ii'
If *.
t;aL = sold To the home merchant at premium o
one ner cent which if repeated monthly makes an
other item of profit Of twelve per cent per ai'iil
add This 10 the items Of interest ana eAchAiiSe oII
Ii taken from the bill, and it swell the pronts upon
cfs1I cqpifa of the bank to forty-elght per cent
will he observed that the subjectm matter discuss
edbv Gov II AREIs in this extracts, the pooerS ana
,,ociaI orrIess conferred by the charters Of the
ti,Dls and not how far the banks have been sue
It'll in their operations, thcper cent awarded
e.ou, time TO time as dividends to their stockhold
A. to whether this bank or that bank has done
= nroftable' or improbable business, was not the
-. &c inoui-v. Perhaps had such been the pur
80 At the time it might have been shown that tho
-, p,,l- and other kindred institutions haC
,,,oda "a, their owners twice forty-eight per cen
-, oil the actual capital they had to bank upon
-, ~ MIGHT have been shown that other banks ha'
- various times made heavy losses for their stock
LoIdors and have had their stock peddled on TIN
tho streets at ruinous discount But the point made
b. the Governor. and which the organs Of the bank
6nd il impossible to eontroyert was the uHfe'Sona
I'd dangerous pricleqes conferred by the char
rsof our present Janbs proper limit upon WIZ
"a, ovo,v reasonable restriction, urged as n
cessarv for the public security. Lettbose WHO see
- take issue with the Message, do it fairly, ant
verv fact stated in this connection can be establish
ed 20 the letter.
rr.,,o the extract we have given, and dissect
.ortence by sentence, and no one at all iamIla
,,;tb the subject and who is not in the interest &
.bo hanks. or wifuly blinded. will dare to contr'
-, tbon It is said by Gov. HuRIS, as one OF til
:. ,.iviecesr conferred upon the banks by eXsui
t.,,o,.s first that they may issue two dollars IN p
nor for every one of actual capital Will any bod
oo,troyert this? Second, that tins paper SO issue
,Ds loaned in discountns the notes Of individuals
,ate cf six per cent, viii amount to from tWeh'
a twenty-five per cent per annum upon the capt.
,vbicb If represents VIII any body con'roNert u'
uti,1 that upon their issues used IN the diSfonn
;n, of thirty-day bills they can realize IN adaiu'
-, MAJ, cent. As exchange. which Is equal 10 t"e'
IS. cent Der aunm; which, adding interest ~
v,bspge together will make eighteen per cent F
:. en-, ,,,,,ft that the bank can charge up'
q, it, notes making thirtysiX per Ger
Any .,r, IN, actual capital they rcprcscr
G.n,As;ne. even that the bank has ISSUED only TWO
''PP - an, of coin Willauy one cortrovs
.bis. Fourth that the profit Of tins transaction 40
,,ceston here for atmaturly, Whenth oIIls I'''
,bo ,lartcr in New Orleans. and the i8nd pE'ced
.ro credit Of the bank. il serves to check upon
+r bon,c merchant, selling at an addltioh'I p''hIu
,f,.n Of one per cent; which, If repeated month";
,,ould make another item OF twelve per cent
o,unm. VIII any one controvert TINS -fli'h' al
r.. ,bo nrofts upon one dollar OF actual capIti
,-epresented by two OF paper anu tn"' b
~ us,a in the purchase of thirty-day bill at s
NOR cent: with the privilege OF SAac'IlS one
cent IS exchange, which would be at the rate
evolve per ceat per annum. and ihS tuna WIZ
,Toctad At the foreign point again turned over ri
nor cent profit, as is often the case by chcckn
., IL for the home merchant. would swell the pro
r.,de mon that single dollar Of actual capital to Il
,ate of forty-eight per cent!
S,ot .re some of the privileges conferred on Il
p.,I-s nv existing charters. That they do not rea
mott profit of forty-cight per cent upon d
;r active capital employed is not the fault oil the
- The friends of these institutions m.
inform the public that banking Is attended WI
-. ,,oo,sssrv expenses and is liable t. hea'
losses and that these expenses ana losses u'ii'''
,bo mott nr,f of the Banks but it will constitute
Yefutation of the facts stated by Gov AA'i''S' :"
,pou which his conclusions are based
In addition 70 the general enumerated facts
Gov. HARRIS aud which cannot be avoided eXcept
nv peY.vcrting his language let Us look TO anoth
privilege belonging to existing Banks, not specih
nv him Article NI of the Union and Planter
Ranks charters contcrs upon them the right TO !
caiye on their paper issue loaned upon notes of S
months. interest Of eight per cent. per annum. Al
- tins rate the Union and Planters Banks. if thC
ala nothing else than loan their circulation up'
.,,.onissory notes. would realize upon their actu
$50 interest at the rate of eighteen per cent p
,,t To say that ;hc Planters Bank has new
,I;z,d as a nett profit, more than fourteen ?
-, aUnum. does not disprove the general Il
-, ~, have stated. And yet the assertion Il
L.In;o, and Planters Banks have never made
cIear prost of forty-eight per cent. is stated a
,o,,,lira ,efutation of the general facts and
5,,ct5ons Of the Governors Message, touching t
question. -. ,,,, s,,,,;,o+ \
hon treated with marked ability by Gov H. and
.bot practical and efficient way that justly alarm
-: ,,,,+i ,i,riss and champions of those