Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-04-25
MONDAY. APRIL 25. 1859.
A Measure TO stimulate Fraud and
encourage Swindlings

A Measure TO stimulate Fraud and
encourage Swindlings
The Democratic State convention adopted
the following resolution as part OF their
creed on State policy:
Re.olred That ii is essential to the welfare
OF the State, that in all charters Of incorpor-
alton, granted by the Legislature, the
power should be reserved in all cases to
change. modify or abolish these private and
privileged corporations, as the public good
shall demand
This was evidently thrown in az a make
weight 10 counterbaance the effect OF the
resolution Immediately preceding it, which
tolcrates a mixed currency. 1t was unques-
tiOnably intended TO operate mainly on any
banks that may hereafter be chartered. The
Democratic party herein say in effect that
should any more bank charters be granted by
thu Legislature of this State, the power shall
be reserved to change, modify or abolish such
charters, whenever in the opinion of any sub
sequrnt Legislature the public shall demand.
The Democratic members of the next Legs
laturr, no stand on this plank of the plat
form, will Ice forced to vote against all
chart RS Of incorporation that shall ot-con-
tain this reserved power. This proposition
will not be- disputed. 1t is therefore impor-
tant that the people should inquire what will
b. the tendency and probable effect of such a
provisonI
The fr~t effect will certainly be to deter
men of capacity and honesty from accep-
ting such charters or engaging in the business
Of Ba king. 1t may be safely assumed that
no SCI Of men Of intelligence and prudence
will risk their fortunes in any enterprise that
may be nj any time taken out of their hands
by capricious body of partizan Legislators,
who, as general rule, are ignorant of the
theory and operations of banking. That
there should lie guards and restrictions
thrown about these institutions no one will
deny. Thy are as necessary to the honest
bankers themselves, as TO the people at large
Sound aud wholesome restrictions, properly
applied will not deter, but encourage the
or alton OF sound banks, that would facilitate
tradc and commerce. and always supply a
convertible currency. The principle embodi-
ed in this resolution. however, directly
initiates against such II consummation. And
through Il the hard wing of the Democracy,
are satisfied that the Legislature will lock
and holt the door against the creation Of any
more banks in this State.
But no such objections will operate on the
m nds If mere finantial adventures and bank
trickst'rs The corrupt and dishonest who
NAV be on the alert TO swindle the people
whenever an occasion offers. will go to the
Legislature and ak aud accept bank char
tiers with the proposed conditions. They
will' organize their banks and send forth
their issues, well knowing that they cannot
be checked till the next session of the Legis-
laiure and food the State with paper that
may not have single dollar for its redcmp-
ton. Meanwhile the people, deceived into
the belicfthat no harm can befal them, or
fraudsbe practced upon them, will accept this
worthless circulation. giving it credit and
currency, with no foundation except in the
assumption that the Legislature has placed
surh strictions will protect the people
against loss. The Legislature will thus be
The instrument in the hands of the dishonest
and corrupt swindler, to deceive the people
and to drcoy them TO ruin. In other words,
the Legislature gives the public assurance
that ih,y have well guarded these banks that
they hold the, rod of death over them. and
that the people cannot suffer TO any mate
rial extent or their charters will be revoked
In this assurance the people will trust and
oonfide, aud the banker will have full swing.
Before the next Legislature can meet. he will
have accompli~h,d his purposes-will incon-
tinently shut mp shop" leave the country
and the people with his worthless promises to
pay, without any recourse whatever.
To our mind. this will DC the most proba-
BILE practical effect of the establishment Of
this new and dangerous principle in our le-
gislation In this view, The principle will
practically exclude the honest and capable
from the business, and open the door to ras-
cslity. Il will stimulate aud give shelter 10 |
frand aud encourage aud promote the aims
Of the villlinous swindlcr. This is the sort |
OF safeguard the Democracy of Tennessee
proposes TO throw around the people as
against the banks!