Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-05-24
TUESDAY, MAY "a, 1859.
Banks or NO Banks-What say the
Planting Interests


this State, let the people reflect upon the
consequences which are 10 flow from a sue
cessful prosecution of that war. Every voter
Is personally and pecuniarily interested in
the decision TO be made in August. The
decree has gone forth that the banks must
die, or be so MANNED and crippled that they
will be less efficient for good, and more eff
cient for evil. How stand the farmers on
tn issue? What will they gain by the ami
hilatiOn of banks, and a resort to an exclu-
sive gold and silver currency? Will their
lands be enhanced in value, if the amount OF
money in the State is reduced one third or
one half? VIII the market price of their pro-
ducts be increased, when there is less money
in the country to pay for them? Will their
sales be more prompt or their returns more
immmediate? VIII they gain in any respect
by the abolition of banks and the substitu-
ton of specie? If these questions are to be
answered afirmatively, ''let the banks pre-
pare to die the death''-but if not, let the
farmers lift their arms in their defence. How,
then, are these questions to be truly answered.
Shall it be by abuse of monopOles, denun-
Citations of bank parlors, and a cry against
shiu-plasters and swindleIs? Or by recur-
renee to the facts of trade and the principles
of Industrial economy? While the hard money
champions are content with the former, we
prefer the latter.
The staple products of the farmer in Ten
nessee, are Cotton, Corn, Wheat, Tobacco and
live stock. His profits are derived from the
sale of that portion Of his produce, which he
does not require for his own use or cOnsump-
tioo. ihc surplus over the supply of his own
waits. Hc Xchanges this overplus for money,
and with the money, purchases such articles
as cuaot produce himself, and which he
CO.. ider- necessary to his comfort; and if
Their, is any then left it is net profit and goes
to Increase the sum OF his wealth. The
amount of the profit is governed by the price
at which he is able to sell his produce. The
price of this in his hands is governed by his
convenience to market, the rate of transpor-
tation, the amount of competition among
buyers and the facilities of exchange. These
are the chief elements in the money concerns
of the farmer, outside of the mode of cul-
tivation and cost of production, which do
any fall properly with the limits of this
enquiry.
The great majority Of our farmers cannot
afford. and do not sell their produce in the
place 81 ultimate consumption-the smallness
of their crops, the risk of loss the expense,
and the trouble and delays will not justify a
farmer in driving n half dozen mules to a
Southern market-or sending twenty bales of
cotton TO Liverpool-or hogshead of tobac-
CO Ia New Orlcans--or a hundred bushels OF
wheat to London. He finds it more safe, ex-
peditious aud profitable TO sell nearer home,
and does 50. to some one who deyotes his time
and labor and capital to the business of deal
ing in produce. But who are these dealers in
produce? and where do they get means to
cash the farmers crop, and send him home
free from all further care! He is generally a
man of limited capital, but of integrity, in
dustry and a thorough knowledge of his bust
ness. He opens 4 bank account. For his frs,
purchase--for instance a thousand bushels OF
wheat-he draws q bill of exchange, PAYABLE
in go OF 80 days in New York-the bank paws
him the money for 1t; he pays the farmer for
his wheat; sends the wheat to New York; has
II sold; places the money in the hands of the
person who is required to pay the bill of ex-
change or so much OF it as is necessary. and
pockets the balance; the amount is placed to
the credit of the bank which first advanced
the money, and forms fund for exchange
which is equivalent. in all respects, to gold
for the benefit of our merchants who have
payments to make for the clothing We wear
DC. So, of a shipment OF cotton, or corn. OF
tobacco TO New Orleans, or of mules or horses
to Alabama, Mississippi or Georgia. In the
latter case the cotton planter pays the horse
trader in bills on Savannah, Mobile or New
Orleans, which. in turn, form \ convenien,
specie fund Tor exchange on those points. The
produce dealer, ut the end of the transaction,
after paying all the costs of transportation
and sale, strikes his balances aud receives his
profits or pays his losses. The dealer contin-
ues to repeat his transactions eS cry day during
the season Tor the sale of farm products, until
oil the farmers have sold what they have TO
sell, and at the end Of the season, enters up
on a course Of preparation for the next This
l. simple and brief statement of the facts
aud course OF trade. The tlrst step in IL is a
b'nk accommodation and the rapidly and sue
e;ra OF the whole process Is kept up and sus-
"a. aed 10y the bank So far as the farmer Is
concerned, 1t is easy, simple, certain and safe.
By this means the country ia supplied with
just as much currency as II needs, aud no
more. II there is a bad season and small
crops, money is scarce. The farmers do not
produce SO much, they are unable TO cell 30
much or to buy SO much aud hence they
have less money aud are Obliged to live more
economically.
But what would be our condition II we
shall have no banks? The entire current OF
trade would be ut once broken. Take the
example Of the wheat. A dealer Is provided
with gold ? I silver 10 purchase one or ten
thousar is. He purchases that guam
ttv producer In gold and silver.
York and there sells II ut
and the specie Is ship
D during this process
iu- another bushel Of
u 70 him, bai be
rrRt,S0H a candidate for cri,n, II frt f.fsFt \