Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-12-22
TheRank Eli,


The prime demand. in the establishment
ofAny Bank or banking system is, that the
issues of the Bank shall be equivalent to
specie, convertible at the will OF the holder
into coin, and that the Banks shall perform
punctualIy and honestly all their engage
ments with the public and with individuals.
Experience has taught that while bank
ing aids and facilities are indispensable TO
business and trade, these institutions some
times fail-altogetber, sometimes partially,
sometimes Temporarily suspend specie pay
ment. To avoid these incidents as lar as
possible and to secure Banks perfectly sound
and prompt is The business of the practical
Legislator
The bill now before US, printed in these
columns yesterday, il designed ito reform
and regulate the business OF banking in
this State. The "refOrm" consists in aban-
doning the system of special charters of in
corporation for each aud every Bank, con-
tanning limitations and restrictions applica-
BILE to each one alone; and adopts the idea
ola general Bank Code applicable to all
Banks and subject to alteration or repeal as
other public and general statutes.
The second section enacts the " counter
note SYSTEM" which is understood to require
the Banks to issue notes payable only at their
respective counters. 1t also prohibits the is
suance of notes of a .ess denomination than
ten dollars. Without questioning the abstract
propriety of this provision, we submit wheth-
er it will not fail of its object which is to re-
tain specie enough in the.country to answer
for all transactions under that sum. Adjoin-
ing States permit issues of one dollar notes,
and these find their way here, and take the
place of the metal which it is sought to re-
tain. We are aware that bill has alread y
passed the House of Representatives at the
present session, prohibiting the circulation OF
bank notes of other States of less denomi-
nation than fire dollars. But upon what
authority? Has the Legislature the power
TO say that a citizen Of Tennessee shall not
regard anything he may choose az of the value
of one dollar or JTue dollars and receive ia
exchange for his property? Is it not an un-
warranted assumption of power over the will
and action of the citizen! Does il not trench
upon his inalienable rights? Mississippi and
Arkansas, States which have no banks, have
enacted similar laws with severe penalties,
yet small bills from other States circulate in
both, and there never has been conviction
in either. and it is not probable that con-
viction or forfeiture will ever occur in this or
any other State for violation of such q
statute. UnqnestiOnably the State which
creates bank may limit the denomination OF
its Issues to any sum, to ten or five hundred
dollars, but it has no such control over those
Of other States. 1t then becomes a question
whether We should place our own banks at a
disadv antage with those OF surrounding
States. II will hardly be denied, that if we
have these small bank notes at all, they
ought, a. far as possible, to be furnished by
our own Banks.
We are inclined to think that the require
ments of sections eight, ten and thirteen
involve an amount OF labor and exposition
of tedious detail which will prove unncces-
s.rily burdensome TO the Banks without ade-
quate benefit to the people. Statements less
frequent would answer the purpose quite as
we'll. The publications required will not be
read by one half the peoples ard we submit
that examinations by the Supervisor at the
times and in the manner indicated and a
brief statement made by him, under oath.
aud published, that the Banks have complied
with the laws, and one doing nothing but a
legitimate business, would be satisfactory to
the public. The operations and affairs OF the
Banks should be subject to no more annoy
ance and exposure than is necessary to pro-
tsct the public against fraud. They should
be allowed to manage their own affairs III
their own way subject only to the law of their
creation. and that law should only throw
around them such guards and restrictions as
will compel them to deal honestly aud faith
fully with the people. There is danger TO
the banks and the public IN OVERRIDING the
thing. The system of espionage may be run
Into the ground. The Supervisor" may be
made perfect Paul Pry, and the whole affair
turned into farce.
Section six twenty and twenty-three re-
late to suspension and violations OF the law.
Taken together, they are clumsy and ineon-
sstent. We shall deter our remarks on this
head to another occasion.
The other provisions are generally
characterized by liberality towards the Banks
regulating their rights and restricting their
privileges. They are generally consistent
with the just powers of the banks, and the
safety ofthe public. We trust that our Rep
resentatives will avail themselves of the holt
day interim 10 give the subject full aud
dispassionate consideration, and return pre-
pared to legislate with that candor aud at
tention to the public interests which their
duties require.