Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-11-29

against the creation or TINS BANK lt was urged
that its notes were bills of credit, and were emit
ted by tie STATE and that it unconstitutional.
They stated further that the banks created previ-
ously had been the means Of creating the existing
distresses of the people.
Whilst the Legislature of Tennessee was thus re
eving the people against the effects of previous
cessve hank issues by the creation of more paperis
sues Kentucky after engaged in the creation
of a similar institution, the Commonwealth Banks,
when the great Kentucky Statesman, Mr. Clay, was
standing out against it, Gen. JACKSON against
the State Bank in Tennessee and the with as lit
tie effect as the other. They both went into effect
and were the most wretched concerns whichperhaps
ever existed in the country fthe size and dura
ton.
The paper of the Bank of Tennessee started out al
ten per cent discount and the most erociOus denun-
Citations were hurled at those who woHd not take it.
1t was declared by act that those who did not take
it should not nave execution for two years. This
was declared void by the Supreme Court. There
was perhaps, such protracted and ferOcious con-
test in any State about money matters, there
about the Commonwealth Bank in Kentucky, and
other relief measures connected with It. The Bank
of the State of Tennessee stood at 20 per cent be-
low par in 1924. Its issues seem to have been,
during some part of its existence like those of its
twin sister in Kentucky, not so good " cash
notes"
Previous to 1927. the Bank of YEATMAN, WOoDs &
Co. sprung up in Tennessee, without charter, and
the act of 1927 was passed to keep men from being
responsible for their issues and to create monopO
" for the benefit of this wretched concern of a
State Bank Judge WHITE said in the Senate in 1888,
that he could travel from New Orleans to New York
on the notes of YEATMLN, WOoDs & Co., without a
discount of one cent
In 1929, the country was deeply in debt to the
branch of the Bank of the United States
Judge CATION said, in an address to the people of
Tennessee, millions bad been loaned by this bank
that money was worth from to per cent. per
month in Nashville and that the crash of 1919 was
about to oYertake the peOple.-See Geuge. 1t was
necessary create another bank to relieve the
people against the wi hdrawal of the notes of the
Bank of the United States.
The strongest measures were taken to raise the
wind to create, in the language of that brave and
patriotic old soldier, Gen. ARMSTRONG q new Dor
rowing place"
In 1882 the Union Bank was chartered, capital
stock not to exceed three millions. The State took
100000 of the stock; authorized t-in certain con-
tingencies to take more than the lawful interest al
lowed to Others declared that it should not refuse
the payment of its notes dues to depostoTS and
if it did that should pay 10 per cent till paid that
its notes might be made payable at either of its |
branches. at any respectable" Bank In the |
Union. whether the same be in Maine, Arkansas, or
Georgia. that its notes and bills issued should in no
case exceed 100 per cent above the amount of cap
tai stock paid in; and by declaring what the tax
should be, tied up the taxing power from 1882 to
January, 1868, period of 80 years
There was no individual responsibility for the
lebts of the corporation no security lodged no spe
lie required by law to be kept by the Bank to meet
is issues; fictitious person with capacity to vend
x millions of notes. on three millions of stock and
he whole resting on the honesty of dozen persons
through a corporate session of thirty years. This,
gigantic monopoly for the year 1882, bOlstered up
With all the power and authority of the State gov
was intended to enable the people to make
eadway against what was considered a still more
igantc monopoly the United States Bank, with its
riarean arms extending into most of the States of
he Union, headed by the moneyed autocrat of the
ay, y. BIDDI-E In 1888 the Legislature chartered
he Planters Bank. 10 expire in 1868, capital 81
10000. 1t charter, in most material respects sim
lar to that of the Union Bank authorizing the issu-
nee OF four millions of notes on two millions of
;apital stock.
In 1888 the Legislature chartered the Farmers and
lerchants' Bank, capital stock 100000, charter
perpetual; in all other respects substantially similar
0 the Union and Planters Bank charters This
uthorized issuance of 81 100000 notes, or 6OO-
90 Of corporate stock. In ls345-6 these machines
OF up by the aid of circumstances in the commercial
world, great imitation of prices producing specula
Ons ending in a collapse of credit, debt, broken
lerchants. suspension. Their paper got as low as !
aud Is per cent. below par in the Eastern cities
ee Financial Register. They were finally com
eled 10 redeem their issues by scre fdcias fore
restoration of specie payments always operating
lost disastrOusly on debtors who got in debt when
aper trash was abundant and then forced to pay
hard money or its equivalent The great distress
the people forced q resort to various measures
n relief, and amongst others to a monster hank 6
five millions, It's bills Of credit emitted on the Il
)nds of the State and its money and the faith and
edit of the State pledged TO it to the extent of its
ock paid in with capacity emit bills of credit to
,ube the amount If capital stock. Thus authoris-
9 the issuance of ten millions of notes on five
ilIions of stock for which the State was bound It's
larter expires in 1868. This bank suspended when :
e Union and Planters Banks did.
In 1874 the Bank of East Tennessee was charter e.
capital 100000, stock may be increased $780, =.
o. with capacity thus to issue two millions of notes
one million of stock paid :
In ls4S the Lawrenceburg Bank was charteredg :.
pital stock 100000 with powers and restrictions
e the Planters Bank Individual liability restrict.
to amount of stock 100000 notes may be is e,
ed on 100000 of stock, and individual liability =
100000. -
In 1852 the Citizens Bank of Memphis chart g.
ID to expire in 1881; capital stock 100000, may -
increased TO S5OOOOO Individual liability for all
debts of tie eorporaton--the charter subject to =
zeal. Charter similar to Planters Bank in other y
pects.
n 1858 the Bank of West Tennessee was charter
to expire in 1881; capital stock 81 100000, with of
hit to issue three millions Of notes on one million Ia
half Of stock. au
n 1854 the Bank of OcOes chartered; capital re
rk s950,OOO, with four branches 100000 each. fec
xpires in 1884 Leading provisions similar to sca
On and Planters Bank charters. S2,65O,OOO Of ha
es on 81, 1925 900 stock. an
a 1919 bAuh Oh Oldil1uOoSa ~ N"t-'~N ]
K $4,000 with right to issue one million OF nee
IS. In other respects similar to Union Bank a d
rter 1t expires in 1884. tins
1854 Mechanics Bank of Memphis was char |
with capital stock of 100000 with right to cor
e S20O, 600 of notes, Stockholders Individually we
e for all debts of the corporation II expires IN 23l
. Leading features similar to the Union and Won
tiers Banks. We
1854 Agricultural Bank of Brownsville was con
tered: capital stock 100000 with right to issue we,
900 notes. 1t expires in 1884 Leading features for
Union and Planters Banks -,de
1854 the Bank of Shelbyvile was ohartsredI = ,
tai stock SJOOOOO with right to Issue one mil 70 j,
OF notes The right to repeal the charter re-
ed. Its leading festures similar to Union K
Planters Bank charters. OF q
1855 the Bank of America was chartered; cap o
ock SlOOO,OOO with right to issue two millions last
ties 1t expires in 1885. The Legislature thought We
ably they were declaring the stockholders liable and
there seems to be some doubt about from the curr
lage used. Other leading features similar to 'lies
JniOn Bank. M.
ese statute books have been run over in much olina
and there are therefore ,yar,, ,obohl,, "a ilodus