Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-07-18
MONDAY, JULY IS, 1859.
RePealable Charters.

RepealAble Charters
The letter from Hon. d. s. Dickinson, of
New York, to A. G. MERRITT, Esq, and pub
lished in the Union and american OF yester-
day, but serves to confirm our impression of
the entire failure of the practical operation
of repeslable charters in that State. After
referring to the charter of the Manhattan
Company, which was granted in 1893, and
which is perpetual, Mr.. DICKINSON proceeds:
sThe history of this charter doubles.
served to arouse legislative watchfulness and
suspicion, and charters have since contained
the declaratory provision that The Legisla-
ture may, at any time. alter, modify or re-
peal this act' Under this clause two char
tiers, at least, were promptly repealed, years
since-one for being engaged in usurious
practices, and another for having issued
notes or checks contrary to the provisions of
its charter. Yet, notwithstanding this sum-
mary treatment, go long as special charters
were granted, the legislature was annually
besieged to increase the number, and the
stock was 30 eagerly sought for, that millions
were subscribed where but bsosssands were
to be distributed.
In short, SO clamorous and importunate
became the applications for bank charters,
that it aroused popular feeling, and about
1889 acrude general banking law was enact
ed throwing the business open to all who
would comply with its provisions and since
that period, no special charters have been
granted, but those In existence were left TO
expire by limitation. This general law, with
many amendments aud improvements sug-
gested by experience, constitutes our present
system, and all new institutions are formed
by its authority"
It must be borne in mind that all our bank
charters-except those established under our
late free banking law, which is now repealed
are granted by special dct of the Legisla-
ture. This was also the system pursued in
New York previous to the general banking
law of 1888. In that State the provision for
repeating these charters at the will of the
Legislature was incorporated, previous to
the general banking law. The system now
proceeded upon in Tennessee-that of grant
ing bank charters by special acts, was in
vogue in New Ycrk-and it is now proposed
to adopt the other provision Of the
New York charters, that Of making
them repealable. If we shall adopt
that principle here, we will be acting on
precisely the same line of policy which was
tried in New York. But Mr. DICKINSON says
that under this policy 1.-The Legislature was
annually besieged to increase the number
of banks, and the stock was so eagerly
sought for, that millions were subscribed where
but thousands were to be distributed" $50
clamorous and importunate became the ap-
plications for bank charters, that it aroused
popular feeling" and about 1889 a crude
general banking law was enacted, throwing
the business open TO all who would comply
SPECIAL CHARTERS HAVE BEEN GRANTED, but
those in existence sOere lsn 10 ezpe by l,tation."
This shows conclusively that the system of
special bank charters with the provision for
repeal-precisely the same as is now sought
to be adopted in Tennessee, if any bank char
ter shall be granted-has failed to bring the
desired benefits, and has been abandoned IN tie
STATE of Nep York. Most of the charters
granted under that system, as Mr.. FILLMORE
states have expired and the business of bank
ing is now done under thegeneral law Of 1888
as it has been amended from time to time.
The people of Tennessee are now invited to
adopt a system which has proved abortive in
New York, and which has been given up as
failure.
Mr.. Dickinson continues that "the general
law, under which our banking institutions
are now formed and transact their business.
is, Ike all other la,cs, subject to change, modih-
cation or repeal" and that there is no State
which holds precedence over New York in the
stability, safety and honest management of
banking institutions. But it will be observ-
ed by the most cursory reader of the extracts
above given from the letter, that so far from
being an example or an argument in favor Of
repealable charters granted by special act, il
is an example and argument in favor of O
general banking law "&rot0ing the business
open TO all wAo soiH comply ,rith ITS prosisions"
This is the sum and substance Of whas is dis
closed by the letters both of Mr.. FILLMORE
and Mr.. DICKINSON. II the New York system
is to be adopted in Tennessee, all that will be
necessary, will be 10 reenact the Free Bank
ing law of 1872, which was repealabe and
was repealed. Are the democracy ready for
this? Are they willing to readopt system
which they have tried, and which has proved
unsatisfactory. IL works WELL il IL true ac-
cording to Mr.. DICKINSON, in New York, but
did it work well heref AS between Free
Banks and such Stock Banks as the Union
and Planters, the public sentiment OF the
State is unquestionably in favor Of The latter.
Shall we wipe out the Union and Planters
banks, and try again the free banks, So far
as the New York example is concerned, this
Is substantially the question. The Union and
American, Of this city, has been especially
clamorons In behalf of the New York system,
and we now ask that organ whether 10 is for
the system ofrepealable special charters, or
for the General or Free Banking iawt Since
it has been so active in making the question
let 1t meet the issue.