Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-11-11

as an abstract proposition, he Would De IN
favor of a metallic currency, but the circum-
stances demanded such legislation as would
meet the emergencies of the present and
would be elective and practical in giving
the people sound currency He would be
in favor of applying further restrictions
hereafter, if occasion should require. The
following is the substance of Mr.. CAN'T s
bill /:
Sec. /. Makes all Banks now existing or
hereafter to be Incorporated in this State sub
ject to the provisions of this act.
Sec. 2. Prohibits the Issue Of any note not
payable on its face at the place where issued,
provided any principal bank may pay out
the notes OF it, branches, " kich shall also he
payable at the principal hank: and no note
shall be ISSUED Of "a less denomination than
'en dollars.
Sec. }. Makestbe CAPITAL stock payable in
coin aud nothipg else, and prohibits the
transit r OF stock until paid in: and loans TO
IT. ckhnldrrs until their stock is all paid in.
Sec. 4. The capital strck of any Bank
shall not excerd TWO millions. nor be less
than seven hundred and fifty thousand dol
lars.
Sec. 5. No bank shall increase it's liabilities
beyond its actual solvent assets; nor shall
engage in trade or commerce, and shall not
hold real estate except IN payment Of debts,
and then for not more than three years.
Sec 6. Restricts Bank note Issues to two
for one of it, specie furds-coin, notes of
specie paying banks and sight exchange.
Banks shall not permit their coin to he ,e-
duced below one fourth OF thCir immediate
cash liabiilics, and shall KEEP specie funds
equal to one thiid Of their liabilities.
Sec. Z. Not TO employ in business the divi-
dends due TO stockholders, unless they are
made part of the permanent capital stock of
the bank.
Sec. 8. Makes ii the duty of the Directors
to thoroughly examine the condition Of the
Bank every six months. and no dividend
shall he d clared, unless the profits exceed
the amount of bad and doubtful debts.
Sc 8. No hank shall be chartered for
more than fifteen years.
Sec. 10. Each bank to make monthly
statements of its true condition 10 the Comp
tro!ler of the State, which shall be pub
lished.
SIC. IL. No bank shall deal in uncurrcnt
money or pay out the notes of other banks;
shall not receive more than one per cent.
for exchange when in state Of suspension
and while suspend d shall pay one half Of
one per cent. on its capital stock to the
State.
Sec. IL. No bank to give currency to the
notes OF another through security or indem-
nifty. without The publication of the terms of
The arrangement in some newspaper at Nash
vile, Knoxville and Memphis.
| Sec. 10 F,qurcS all notes put in circu-
lation to Ire registered in a book 10 be kept
| by the bank which shall be examined and
certified by the Supervisor of Banks, " who
shall report the same TO thu Comptroller. who
shall then publish the same. The penalty
for Issuing notes not so tgistered is fine
of not less than Eve hundred dollars. and in-
prisonment not less than six nor more than
twelve nuntiiP.
Sc. IA. No part of the capital any bank
shall be Withdrawn. nor any assets applied
to other purpose before the liabilities Of such
are paid--and penalty for violation of this
provision is fine OF five hundred dollars,
and imprisonment not less than two nor more
than ten months.
Sec Is. One fourth of the Directory shall
not be stockholders in the bank and no per-
son not citizen OF Tennessee shall be Il di
rector.
Sec. l6. Accommodations to stockholders
shall be on the same terms as to other Gus
TONERS. and violation Of the provision shall
be a misdemeauor and punishable by fine and
imprisonment.
Sec II. No bank shall pay interest on de-
posts, or buy or hold or cancel its own
stock.
SEC. lS. A perscn known as Supervisor of
Banks" shall he appointed by the Governor,
10 investgat the condition of all banks IN
the State, at least quarterly, and report 10
the Comptroller, who shall publish the same.
Sec. 10. Makes il the duty OF bank officers
TO afford the Supervisor facilities for examln-
ing the affairs Of the Bank. no is authorized
tn swear them touching the affairs OF the
Bank-and the exhibition of false assets, or
iy no hank N la. "A mi.
demeanor and punishable by fine and i'm
prisonmeut.
Sec. 20. In case of suspension for more
than sixty days. the Supervisor is required
to proceed in the ChanceIy Court OF tue dis
trict in which the bank is situated, to subject
thu assets Of the lInnk 10 the payment OF its
debts. and to declare its charter forfeited
ProU,ded that. if The Governor thinks it for
the public interest h. may suspend the pro-
cerdings from time to time ill the meeting
Of the Legislature.
See. u. The Supervisor TO give bond in
SO 600 aud be paid $4,000 per annUm Tor
his services.
Sec. y. A pro RITA tax to he levied on all
the Banks in The State except the Bank OF
Tennessee, to pay the salary of the Super
visor.
Sec. %. Provides that whenever the Super
visor thinks any bank has exceeded its chart
cred powers, he shall report the fact with the
reasons. TO the Governor who shall submit
the same to the Judges Of the Supreme Court,
with any statement the bank may make I'M
der oath; and The Supreme Judges shall then
after hearing any argument they may desire
If they or a majority of them shall think
there has been any abuse or violation OF it's
charter ley the hank. give their opinion III
writing to that eli CT 10 the Governor, who
shall report the same to the next Legislaturr.
and the Legislature may thereupon repeal,
alter or abolish the charter OF such bank.
Sec. "a When banks de>ir" their notes can
celled, it shall be done Ia the presence of the
Supervisor, and the amount. number and de-
nomination of such not. shall b. registered.
Sec. Is Banks may discount bills and
notes payable in the State at The rate Of six
per cent. pr annum: and if such note or
bill l. payable at place different from that
where The Bank l. located. it may collect, in
addition 10 the SIX percent. the sum il would
take b. collect such hill or note if paid ut
maturity: nnd on bills of exchange payable
out of this State. a reasonable exchange in
addition to the Elk per cent. may be col
lected
Sec. %. The stakeholder shall b. indivi-
dnally liahlr To- iiI- creditors If The bank un-
Gil h.. has paid the same in full on HE original
subscription; and ii directors shall be guilty
of fraud or " ilfal fuisHauae efneIt of the at
fairs of the hank whcr by loss is occassioncd
to creditors such directors, on legal a>ccr-
tainment Of the fact, shall be Individually
liable ter such loss.
See. "a. Bank to pay snch tax aS the
Legislature may fix, provided it shall not
exceed the tax upoa the money OF citizens Of
the 5 ate.
See. 2e. All banks shall be subject 10 ex-
animation Icy such committees as the Legis-
iaiure may appoint.
fS,s-,.t m, ,..,.b D., ,,,. ,-t,,t,.,, s..x.,,a,