Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1859-10-06

=. NECESSARY
: at upon tn. face of every charter you should |
their Legislature. the power to modify or |
or abolish such charter, when in their opinion |
the public interest demand it.
Indeed, to dep'ive the pf o ,le OF the power |
tc control or abolish institutions created by
their authority and alone for their benefit, il
Inconsistent with the great and fundamental
principle of selfgovernment
| maintain that the people are at all timas
capable of determining for themselves, and
are the best judges. as TO what will promote
their own interests. That they have right to
determine for themselves thenumber and char.
acter of banks they will have, and To restrict
andgnard them, as theiights of experience may
prove 10 be necessary, and 10 abolish them
WHEN thy fail to perform their functions fully
and properly, and cease to be public benefit
And for one Legislature to fasten upon the
STATE a number of banking institutions for
period of thirty or fifty years. the charters of
which cannot be amended. modified or repeal
ed is an usurpation of the rights OF future
Legislatures. contrary to the principles of
self government. and an outrage upon the
rights of postPrity. ~
1t is. in effect, denying to those who shall
come after the rights which we claim and
exercise for ourselves. And not only for our
selves; for..by this policy. we undertake to
penetrate the dark and distant future, and
decide for our successors. for the next quarter
or half century, the character of institutions
which they shall have. Withholding from them
the power to mould or modify them to suit
their necessities or convenience. OF to protect
themselves against the wrongs which they
may perpetrate, or to abolish them, however
pernicious and prejpdieal to the public in
terest they may become thus denying to the
people. in the future. the privilege of profit
ing by the wholesome lessons taught by the
experience of an entire generation.
will never assume the responsibility of
denying 10 the people, in The future, the right
| of d. Gliding for themselves as to the character
of institutions which will :. be expedient for
The public good" aided as they will be, in
determining the question, by The lights of ex-
| perience. and the facts and circumstances
which time will have developed.
l. II the pPople OF the present day need and
desire banks they have right to make such
as the Constitution contemplates, and to
| manage and control them tor themselves; bnt
| they have no right to forestall the popular
| will and tie the hands of their successors.
For the experience of every man proves that
| the policy which may be highly expcdient at
| this time. and under present. circumstances,
| may become the very reverse in the course of
a few years, when circumstances have chang
| ed. And the great distinguishing feature of
| our Government, which commands the love
OF the civilized world. is that it is purely a
Government of the people, who have the
| capacity and the right to mould and modify
| their institutions and their laws to suit their
| own Interest and convenience. and the cir
| cumstanccs which may surround them from
| time to time; but if you adhere 10 the policy
| of irrepealable charters, the result is the cs-
tahlshment ofsovercigntirs within our midst,
invested with powers 10 affect materially tn"
| Mt of in n uti-U vii
| regard to which the people have no power
except that of patiently enduring such
| wrongs as may be perpetrated upon them.
| There is no dissenting voice in this country,
| and | trust there never will he, to the pTopns-
ton that the people. through their Lcgisa-
| ture. may at all times make. modify. or re-
| peal The laws upon which the lie, lbrriy,
and property Of every man in the State de-
| pend; yet this policy of irrepealabie charters
and ..vested rights denies to them the power
| to modify or repeal the law upon which the
| special privileges and franchises Of a souiless
| corporation depend. Are these to be held
| more sacred by the people of Tennessee than
the life, liberty and property of the citizen
| Let the banking system of ihe State, like
| all other measures of public policy, be placed
| under the control of the people, and then
just so long as the banks perform their func-
lions fully and in good faith just so long as
they make themselves advantageous ard bed
9ficial TO the public just so long as they are
"eXpedient for public good" they will be
fosiered and sustained but when they TAIL
in these res poets, they ought to be- abolished.
| Tee fact that their continued eXis -ence Is
made to depend upon their prompting the
| public good. by full and fair performance
| of duty, would furnish the powerful incentive
| of self preservation as a motive to banks to
| avoid excuses, however much tempted by the
prospect of large profits and to perform, with
perfect fidelity, their whole duty TO the
people. E... ... .las..
1t seems to me that you had just well
expect rational people To shut themselves
in from light. air, aud the genial warmth OF
the sun, as TO expect them TO strike down ill.,
stitutions which are promotive of their inter
ests, and beneficial and convenient to them;
and the Constitution tOrbids your charteriHg
any corporation which is not of this cha.ac-
ter. Hence, cOrporators who intend to make
| a bank which will furnish to the people, at
all times, and under all circumstance, a
sound, uniform, and convertible currency,
need have no fears of the reserved power
| and il would be unwise and impulitic in the
| extreme, as well as unconditional, to give
them the privilege of creating one of diff
! ferent character
About half the States of the Union. and
amongst them New York and Pennsylvania
two of the largest commercial States in the
| Government, guided by the lights OF long
| experience in banking, have been forced to
adopt the policy of risfrving complete iegis-
lative control over their banking Institutions
| New York adopted this policy by legislative
| enactment i'll 1880. aud after testing il
by trial of sixteen years. it was incorpo-
rated into the constitution of that State, and
there is not single instance upon record
where it has been adopted by any State that
the reserved power has been abused 10y the
people
Indeed, / cannot see why they should be
expected to abuse this power any sooner
than any other or every other legislative
power which they possess. 80
therefore earnestly recommend the fol-
lowing restrictions, as indispensably neces-
! sary 10 any say>t,m of banking which is
| tpected to furnish a sound, uniform, aid
convertible currency:
Fra.- The power reserved to the people.
through the Legislature. to amend or repeal
The charter when deemed eTpedieat for The pub
Second-That no bank shall be permitted
TO ISSUE more than two dollars of paper for
one OF specie, or to print its entire liabili-
ties to note holders, dcpositers. and Others.
at any time, to exceed the specie IN the
vaults more than three for one.
The experience of the financial world has
demonstrated. beyond controversy, that tue
convertlbility OF a paper currency cannot be
maintained, at all tunes. when the dIspr por-
ton between their specie aud liabilities runs
| higher than this.
7Hud.-That no bank be permitted TO issue
any note of les denomination than twenty
dollars. This will secur" sp Gle curr' ncy
for all the smaller business transactions OF
the country, aud at least a partial exemption
from losses hy bank failures and d pr cia-
trd currency, OF that class of the community
who are least benefited by bank aecommO-
dations. and yet are generally the most scri
Gus suff rers by heir failures or depreciatio on.
And the large amount of specie ne eSsarily
retained ia the country in constant circuIa-
ton under this policy. would g. far to relieve
if it did not prevent the commerci.d revul-