Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1860-03-30

FRIDAY, MARCH 70. 1850. z
our Currency system-The Aetion %
Z = the late Legislature.
me action of the late General Assembly
ON the subject of banks and the currency was
ruueh more literal than we had any reason
q .porebend. from the declarations OF lead
INC members of the dominant party, within
-svelve or eighteen months prior TO The last
August election By those declarations we
had been led TO believe that that party would
sci It's face against chartering any new banks
of fszue. but would inauguIafe q system, de-
signed to wind up eli existing Banks as their
charters should expire, and thus ultimately
reach an unmixed Fpecie currency. But the
thorough exposure which that theory receiv-
ed Mt the hands Of the Opposition during the
canvass, though It did not secure their tri-
umph as a party, caused an abandonment Of
that idea. and was thus of great service TO the
commercial interests of the State Those
other iudefensibie doctrines known as ''indi-
vidual liability" and '.repe.labiliIy," so
much insisted on by the same party. were
wisely given up, and general law regulating
the business Of banking adopted. This meas
ure was professedly a reformatory one, and
its chief features were wholesome in princi-
pie and will prove beneficial in practice
During its tendency we embraced the occa-
sion to animadvert on some of its provisions.
and ii WAS partially amended before its inal
passage. Yet it is, perhaps, imperfect in
some of its parts, and may bear proper
amendment at some future time.
Under and subject to this law the follow
ing Banks of issue were incorporated:
Union Bank. Nashville.
Planters Bank -. ...-...-.-.
Mechanics Traders Bank.
Bank of CIsrksville, GAINESVILLE.
Bank Of Frankland, ,. Knoxville.
Valley Bank, -DaDdridge.
Merchants Planters Bank, Memphis.
All Of these are new Banks except the
Union and Planters in this city-and, we be-
lieye, each with capital of one million,
with the privilege of increasing the same 10
three millions of dollars Besides these, va
rious banks are authorized to establish
branches at many points in the State; 80
shat the number of Banks of issue will be
largely increased.
Banks of deposit, discount and exchange,
without the power to issue notes to pass as
currency, were chartered at Brownsville,
Knoxville, Athens, jackson and Harrison.
A general law was also enacted permitting
any individual or association of individuals
60 organize, establish Offices and prosecute
the business of deposit, discount and ex-
change, issue checks. bills, &C.. &C., but pro-
hibiting the Issuance of notes to pass as cur
rency.
Several new Savings Institutions were also
incorporated
The Bank of Middle Tennessee was chang
Ell in its nature from a free Bank to u stock
Bank. subject TO the provisions of the general
banking law. or bank code. The Bank of
Memphis, IA Free Bank). was authorized to
be withdrawn and branch of the Bank Of
Chattanooga established in its stead. The
Bank of Knoxville was united with the City
Bank OF Nashville, both free Banks, and thus
one of them is blotted out.
The act establishing conventional rate
or interest, at ten per cent, where agreed
upon 10y contract, but leaving 1t at six per
cent in all cases where it is left TO be fixed
by law. will, in addition to the legislation
on the subject Of banking, exert material
influence on the monetary and commercial
affairs of the State.
This. in brief. is an outline OF the action
of the General Assembly at its late session.
on this much vexed and. in many respects
delicate subject. 1t will be observed that
much of it is quite radical, and most Of it
new in this State. The idea of the "code''
IL borrowed from the system adopted in
Massachusetts, where il is said to work safely
and satisfactorily. 1t is a modification of
the special charter system. and may be found
ed on sound principle. It's chief effect is to
reserve legislative control over banks. but
ut the same time secures equality among
s them all-one cannot be- legisiated out of ex-
istence without producing the same reasons
for all to go Quit tends 10 prevent favori,-
ism In respcotito any of ihem-but we scarce
ly think il is perfect. The making every
man In the State, at bis discretion. banker
for the purposes OF discount, deposit and ex-
change, we fear will promote q spirit of
speculation, which may result in fraud and
injury TO the public. Banking In all its
phases. is, from its very nature, subject Of
abuse; and must be left, under the slrictest
regulations a9d with the most perfect safe
guards, to considerable extent, 10 the
honesty and Integrity ofiis managers. It Is
mysterious and inventive, and should he
limited and restricted, both in extent and
prerogative, 80 far as is consistent with it,
successful operation In answer TO the I'm
peratIve demands of an enlightened and
prosperous people. We trust that The late
Legislature has not oyerstepped the bounds
of prudence. bu, that their action may re-
dound to she public welfare; and while we
n,isgive that they may have Transcribed a
sound discretion we hope their successors
may be able TO correct any error aud sup
ply any deficiencies that practical develop
ment Of those measures may disclose.
THE CLAY Static N NEw ORIEkNs.-
C<s.t nrenara fions arr. making In New Or