Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-20
At Louisville Exahange is quoted at &c premium
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The Augusta iGa CONStHHgi3RutiSt Of the lSh says
Georgia railroad sold through the
pa and interest. and thiry-dve BROUGHT sIO2
heard the sale Of SeOOOO Of tue Mississippi Central
There SOO6 CT East Tennessee and Georgia railroad
bonds sold O. yesterday at 50 and interest
Centred railroal stock is held at Sl2l
BAyKs AND BAsKSa-so much interest manifested this
State present in regard Ranks Banding, that
duced following ext from the Report OF the Su
perutaudeut the Banking Depart q Tie State OF New
York transmitted Legislature Of that State the 30
Thsinormaton contained in the w be found only
interesting hut vaIuabIs The Superintendent says:
The past year has frnshe additional evidence Of the utility
we'll the satg Of the business Of baang as now pgrsud
this sts under the provisions OF the Act T. authorize the
basines Of banking, passed April L. and the amendments
OF the
C special charters, comforting exclusive privileges and
even r.r twenty years experience general law,
dcEt impress upon TIE public mind the fact that the
emp ovnent OF capital IN nHEhs e as re rs us
any pursuit The old system Of special charters
mind, monopoly eaioyed by the fayorite fw,
Fsatnn has been invoked each year either to restrain the
action capital or fter it in its operations
Ny Cock here enters animated defence Of the General
Blinking Law.
During the past year capital has fer the first time since tie pas
sge Of the General Bank Law, comparatively paused in its
aggregation for the purpose pursuing the business u banking
On the Oh OF Juue lo1' te amount ol actual capita spi'eo
in the business Of banking was in round nunes slt5OO@W
havin risen from s4 Oo0Ouoin 1919 During
the year ending l9 june lolo tbOUOO was added TO the
banking capital Of this state, and this white the emit
sdurug past fiscal year is scarcely million aud quar-
ter Of dollars and Of this SUN oiet is the shape OF cres
ell capital already existing, aud but IS has sought
investm in associations and individual banks
clear proof that capital has becOme alarmed at
tb it, oGs are deceasi1g or tb1 otbe Investments are
being considered either more safe or profitable
The desire Of accommodating property or capital is more general
and mo intense with nat0n than with other still
capital perhaps takes greater risks for large profits in this
country the ID world, yet with its provebil tmdty
It ha before remark ed for the first time since the passage Of
profit, in the 1sness Of banking.
That capital has wisely paused in the pursuit Of profit in the
business banking the Superintendent fully believes, and
examination Of the quarterly reports Of those ms buttons for e
last few years viii make this fact apparent
The surplus profits Of those institutions had grown with their
growth ami sreng hsned with the strength Of their capital
i'll in addition TO dividends from ST.
on COO in 1919 S394guOO 1851 In rs decreased,
while hanks passed dividends TO S35b36j and again
It appears to tie Superintendent bank
ing capital brought within certain fixed rules beneficial
prudence would banker that beyond certain and fixed
liability he Should not advance That the temptation to aok
cers With means in their hands step beyond TIE
bounds which prudcne would dictate fully admitted VIXEN to
officers are in the eyes the stockholders would al
show by the Of the past where
the bounds OF safety lie the business Of banking.
While the employment Of capital in the bus OF hlEking IS
its use is in other nusnessaud in the opinion
~ irfI,ai man far fsr h tbs c5nrnit and more
certain upon banking cpit and its abuse
than the concentrated wisdom Of all past legislation
the actual condition OF the business Of banking in
this State elimination, and its gradual but certain 10
that will MAKE the investment OF capital ia that
suit certain and secure prophet
rs e following summary relation Of cap
it banks has been prepared The als 3nEns associations
and individual bankers doing business in this state had placed
upon the shape Of discounted notes rather what
may properly called Lo aud DscJuat in leJO,
- iJnper cent Of their liabilities taer capital De-
posts circulation It will be observed that OF ilmeite
means but Il per cnt including bank balances, Fas instantly
This was using capital and The credit deposits and crcus
ton that prudence would admit c7usi,ten:
with safe and profitable investment Of M actual OF
capital employed This cCnsr 90 - % 100 per cent IA
in 1853 1t tell - Il 10 in 1854 20 - . 40
1855; remained nearly stationary at ~ during The years 1856
,5 ~ the g,-ra ysrarr for The Ten years in Isjg
Iii proper here that the per ceutges above mention
@ az tie 6 he stocks md bonds aud mortgages held in
this office security for circulating notes issued hem, this
epost forming portion OF the capital Teach bank making such
Il viii lie readily that 1859 1851, 1852 1898 and 1855
we're years banking locking to nae ate uas
asteaI SAFETY. And b. reference to Table No lit
will be seen by the rapid increase employed in the
anAiug how responsive was to s profitable employment
again the Investments Of during years show
the Ieslt, and rat tansng business in TN. state has
reached IT'S extreme point Of profit curing the years eJJ o'l
During the year 1850 tn aggregate loans including the stocks
bones and mortsages a this eepauen2 The ls 6tnk-
M Citations and individual bankers OF t STATE we're s1 r
each siOJ o. actual cg5l pa9 up ~ 17' 80 y. ~ SD
3l7 Ijs sl92 in 1859 Slse The figures given in
! round numbers without the f,aclnns.
L wiz he that tie ucdrble years for banking capital are
again o Lav, been lesl, 1851 ls55 ana l-J5
fourteen hon dollars banking capital invested Ia that
business and during the succeeding 500 o. o. aEdiu 1850
and Leary $4,000 OuJ 10 1871 thus increasing
banking capital of the State from little less baa SGJ0U0OUO
( in 1859 70 over $40. g, OO,OJOin 1851.
cptis1 Ct the years l-j- and 1859 viii show that the eg
fors OF the anks Specie ayments reduced their yearly
income or proofs point lover than the history Of banking
m this state under general law sd during Tie past
ten years. aud healthy and profitable Cal it in that
{ business is again approacti
Tie resumption Of eCe aymens ~ hanks Immediately
preceding June statement 1853 large reduction o.
heir immediately followed ssful Efforts It
observed that the tendency from heif ption
increased Of d cir tai deposits per
cenage use rising from per in sjo per
lS9 The sY=Ea-e for years the the available
OF all these Institutions this per cent. Il
would that tn paint should banker
ard that this average would be
opinion upou between che extremes Of 1850 and 1883 there
we're years OF very general prosperity we'll dpres
: sion in the business Of banking
Another curious result shown tho Effects arising rar the
General Ba1 law develop themselves II MT until i1 lt
the General Bank Law became fixed fact the minds Or me
capitalists Of this state To at time attempts male and
for legitimate banking purpose popTieors
thereof making money speculation alone Banks wee
located literally the wilderness signed ny power Of
attorney, given irresponsible persons presidents and CASH
ers. Every work prevent he return q nos
Of the redemption, and they
issued or signed place business shown hY the face
The business carried on % the agency
90 the city New York, Albany Troy
eraly complying with the pr1vous OF the Of ISfO,
which allowed rather compelled all banks banking
aud individual bankers located out Of those ce,