Daily Nashville patriot. [volume] (Nashville, Tenn.) 1860-1862, 1860-11-29
sHELBYy1LLE BANK

Specie and Specie Funds -. $50, 199 %
Discounted Notes and Domestic Bills 75,574 So
State Bonds, OBSERVATION-DISCLOSURES 1000 90
sl71.s1s Ga
4 still further analysis Will show another fact
that the people are indebted to these Banks on
bills and notes more than ten millions of dol
lars, while the Banks are only indebted to the
people in the shape of deposits and Bank notes,
something ever four millions of dollars, show
ing balance of Indebtedness, in favor of the
Banks of more than two to one. This fact is
made prominent, in order 10 show the holders
of the notes of these Banks that they cannot
and should not suffer any loss upon them, in
any event, the law making it obligatory upon
the Banks to receive their notes in payment of
debts due them.
The above statements put you in possession
of all the facts of which l am cogniZant, and
your own judgment will lead you to conclude
whether the Banks can live through the exist
ing monetary storm.
now come to consider the remedy for the
evils which have been previously referred to.
1t cannot be denied that the disturbing causes,
whether rightly or wrongly, have destroyed
public confidence, and IS driving home the
notes not only of our Banks, but the Banks of
all the other States, for redemption. The re-
suit i'll most of the chief emporiums of trade
has been Bank suspension Again let ii be
remembered that every dollar of specie fund
taken from our Banks makes it necessary under
our law for the Bank to contract its circulation
three dollars, thus abstracting from the circu
lating medium, already too small, at a ruinous
ratio, which, if persisted in, must inevitably
result in the total bankruptcy of the country
Is there any method, then, by which this
great evil can be averted? l have considered
the subject in every point of view that my
mind is capable of comp-ehending it, ann do
not hesitate to give it as my opinion, that the
only remedy is to be found in the immediate
but temporary suspension of specie payments
on the part of our Banks.
If they do not suspend all they can do is to
contract their circulation until every note they
have out is redeemed. and in order to do this,
they must, in selfdefense, cease all discounts,
and what is still worse, add tenfold to the al
ready distressed pecuniary condition of the
country by collecting in the ten millions of in
debtednesS due them from the people. Is the
country in a condition to stand such pressure?
Who will be benefited but the fortunate few
who, happening to have their fortunes in money
will be enabled TO purchase the property OF
their neighbors at one-fourth its real value If,
however the Banks suspend, temporarily, and
with the bona tide intent and purpose of re-
LieUing the country, the good they do as an
caLcuka5Ie
The Cotton Planter can find sale for his cot
ton, the Banks can discount the bills of the
cotton merchant, and he having time to send
his cotton to the foreign market, can bring
back the gold, with which the Banks can re-
deem the notes loaned him for the original
purchase The Planter with his local currency
thus obtained, can pay his merchant for sup
plies, his mechanic for the implements oflabor
manufactured by him, and these in their turn
can meet their indebtedness The same
I LIZ L
corn, and all the other staples of the
country This too will enable the Banks to
extend the ten millions of Indebtedness, hang
ing like an incubus upon the people of the
State, and in so doing benefit themselves as
well as the people. By forcing collections at
this time, many of their creditors would be
unable to pay, who, if allowed time and easy
instalments, could readily meet their liabilities
Thus would result two fold benefit, the banks
getting their money which they would other
wise lose, and the people the relief they so
much need. The remedy, in my humble iudg-
ment, would be immediate, and would reach
every class of society and every public enter
prise in the State.
No one is more opposed to bank suspension,
IN ordinary times, than myself; but extFaordi-
nary emergencies require extraordinary RENE
dies The suspension of the writ of Hd5eas
CorpaEs, and declaration of Martial Law, are
remedies resorted to in times of anarchy and
revolution in governments. There is a state of
anarchy and revolution in the monetary world
and it seems to me that remedies of a prompt
and extraordinary character are peremptorilv,
demanded. The remedy must be speedy or
the evil to be avoided will have been consum-
mated. If it were otherwise, would suggest
that the whole question be referred to the Leg
islature for its action; but | repeat, there is no
III ID
States are acting and relieving their citizens
Why should not our Bankers listen to the APP
peals of distressed and almost bankrupt
country, and apply the remedy? l trust that
they will have the patriotism to raise themselves
above their money bags, and act for he peo-
pie in these gloomy days of political and pc
cuniary revolution.
IT'S true, there is a penalty placed upon
them by law, in case of suspension, but what
is this penalty, compared with the great good
they do, the great evil they avert, and can they
doubt that the members of the Legislature
fresh from the people, fully aware of the ne
cessity for this course of action, and the relief
to the people resulting from it, would hesitate
to release the penalties?
To recapitulate-First, 1 propose a tempo
rary suspension.
Secondly-The Banks so suspending to act
of liberal but prudent discounts and renewals.
Third-To check at maximum rate of one
half Of one per cent.
Fourth-To furnish in exchange for their
notes small sums of coin sufficient for the ordi-
nary wants of the community
Fifth-A resumption as soon as the causes
operating to render their temporary suspension
necessary, are removed.
These views are given, gentlemen, with much
difiidence, knowing as do, that am address
ing persons fully acquainted with the finances
and wants of the community. l could not,
however. hesitate TO respond 10 your communi-
cation, and in so doing assume my full share
of responsibility to bring about the result
above indicated. @ te
l have the honor, to be very respectfully,
your obedient servant, sc.
NM. A. QUARLES.
To Messrs. G. W. CUeNINGHAM, T. AMBER
son and others, Nashville, Tennessee.