Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-17

Ohlieu otAtes on ibis system Of . confidence bank
ing' and the a5lest men and the most reliabl
journals condemn il as uosafe
Sir was elected on the Democratic platform
ana that pledged increased security 20 the note
holders. I saoud be false aud sr6jious 20 tb
people who elected me, II I did act labor TO civ
increased security to the note-holders. They kn5 v
and kao8, and THIS Sena:e kncws. that when tn,
stockholders are not personally bound for The re
demption Of their promises, aud when no securit,
is lodged in the hands Of a public oHiesr far m,
redemption Of their promises, and where the mel
! who Issued the notes hold Ia their own hands fb
whole effects OF tae "instituuon" without the dan
ger Of punishment OF even arrest, that there is n
security for the note-hOlders Whstever.
pledged myself to give increased security to th
noe-holder
/ nor, sir, no banking system resting on conf
denco" alone can give increased sseurity 10 th,
note-hoideTs, ana l viii vote fer saeh bank. Yot
can increase the security 10 the n5ts holder By ren
derng bank officers responsible Tor be redemption
Of their notes. or By requiring thea give security
/ for the performance Of their promises. Bat yol
deprive him Of all safety whatever, by eEemptinl
the stockholders and directors personally from th
paymeut Of their ds5ts and requiring security
/ from tben, and ilhieliog no punishment on then
/ for frauds
Every body knows the old system Of stock bank
was condemned, because ia every State il he Unior
! there had been the nest stupenious frauds a1C
/
bank system, We ought 10 permit all our publo o.
/ fcers 70 give no bonds, or il they did, 10 hold
them themselves on the eonddsRse system"
Rhe-gasd- arrangement Of c few beuks on the
/ "e0uhdence" prinoiple sgts 20 guaTanteo that II
is a safe system. II it Wers true that most Of the
banks organized on the coal ience principle" bad
/ succeeded in securing the peUpls against suspen
siOns, frauds aad loss, oppressi5n and auotustou,
| it would be no Justification Of system which ex-
posed large masses Of what Gen. Washington called
the most valuable" portion Of the people the Ia
boring farmers-.o severe losses by suspensions b.
frauds and b. huctustion periodically.
Every note th1. is Issued moaey ought 70 be
mads safe and as secure IS the pledge Of proper
ty cou d make it. There was never an issuance Of
large quantities Of paper money, good or bad, that
spectators and B. cynfderce meG " about towns did
aot make something out Of It, whilst the less falls
always heaviest on the toIliug flrmer remote from
the sceues Of bank operations. lie does not par
ticpate in the profits or advantages. Money loaned
a. ninety days does him good, but whea The dark
day OF losses comes, he has TO bear the brunt Of
that loss,
TIE friends Of the 'eoz6lence eystem' have pre-
vailed on many TO think thst they could fill any
bodys pocket with money, but the fruit is biterer
aud tu-ns to ashes On their lips" Mr.. Webster
said shat Of ali the COntvance 10 cheat the labor
ing masses, hat which deluded them with deprecia
ted paper was the most extensively Injurious" 1
want increased protection 10 the Hole-hOlder and
for this purpose rely oa the pledge Of property in
hands Of the issuers # the note, and in the hands
of public officer to sell II, If the note Is net paid
demand. l rely On tho Jail and tie peuiteutsry
to secure the people against frauds. do not rely
on big mOnOpOlies that have he power griGd the
people at ther will l not confidence man
when the safety Of thousands is concerned. 1 want
notes 20 be made as secure as property can maze
them, and as secure az the jail and penitenliary
can make them. Ny competitor fer the seat l now
occupy, last summer in OUr canvass, said: - /
wanted to put all the Banks into tie peuitenuary"
wish to make the issGers Of notes responsible for
their redemption. | wish to make them safe, or
do not want them issued at all. Il is q Thousand
times better thai NJ paper mSaey be issued, than
that every and taen some instituliCn" as iJ is
called or s'confience bank," should breaz '.sus
pend" AID then buy in it's notes st great discouh.
and thus make fortunes by breaking. The peopl! 1
represent, composing the counties Of Hardeman,
McNairy ami Hardin have interest 10 the pJOhts
OF banks; bul when the day Of loss aud trouble
comes they have their Proportional part to bear. [
came here - them ircm fraudulent currency,
ss far as could. gst up by specuiators. came
here 10 save hem from big mOu0p5!ies with power
to make money plenty, and make money scarce and
to 10 this, have DO confidence IN any thing but
individual liability for the notes issued, properly
pledged il the hands CT public c1doer, and in lie
jail and in the peniientiary.
We put into the penitsuJiary poor guilty wretch,
reared IN the midst Of evil associations, Without
moral training. and without education, poor, dgst-
tute Of the means gf supporting family, and, per-
haps, lxisLte; iHearcersto ths poOr creature,
the most appropriate OBJECT Of human sympsthy,
without mercy ia the walls Of feniJentiary, t5r
the passage Of five dollar counterfeit bill. This
is al rignl, mighty well-a just and q good SEN
tsHce But The men who cCntrol 3 monster monop-
oily, break haf u-illiOa premises, derGuge ell
trade, ruin thousands and the wsil Of th suffering
lsborer, and he cry Of his family for bread Is heard
through the llLd; but the author Of a.. this mis-
chief escapes unship, Of justice, with l21 per cent
damages TO The note-hodsrs, which is not exacyed
/ want some additional security to the n0tehOl9er
and 1 know sud you know what that security con-
sists IN every where else It is ir the responsibility
Of tie individual property Of the stockhoIder for
the debts Of tie bank; or i is in the deposit Of
bonds TO meet the notes issued. You can give sur
h5ieDt protection to the nOtehOlder no other way
than by sui tecting the individual property Of the
stOckholder, or placing it in the hands Of the State
officers. Ia the State Of Louisiana the stockholders
are liable, Individually, for the last dollar Of the
debts Of the bank They are also required 20 place
s ate bonds in the hands of officer 10 be sold 10
pay their n,tss, if they dc not pay them Ia short
time This makes the notes IS good a. the State
of Louisiana is itself bIr Buchanan recommended
that system of banks as the best. The NeFchGRtS'
NGgsziae and the BANKERS -Hggazme both say il is
the hest. The noteholdcr is then fully protected
and The Board Of Currency Of Louisiana sag these
banks are making money. The minimum size Of
the banks is SlOO OOO as in New York. Il is said
that Louisiana has more capitol than Tennessee
and therefore individual liability and security viii
not do here If there be more capital they need
more, and the cost OF living Of labor, and Of en-
pICying capital is more. But this amounts to an
assertion that we should adopt O system that is
also more Gusafe sud that everybody knows will
lead TO the most extensive losses 70 get paper money
out in abundance So i=r from It's being true that
We should adopt d lo0ser system Of banking, it. is
perfectly certain that the interior agricul,urs.
States sre almost always Indebted to the seaboard
cities and the exchanges almost always against
them and always 50 where they have a heavy bank
note circulation. Il is therefore much harder to
nl,intain paIes circulation sound and convertible
in IA interior agricultural State like Tennessee,
than it is in q seabcard city. They break oiteuer
and should give heavier bonds 20 protect The note
holder aud keep more specie sustain its couverta-
biiy and meet the constant drain on them. The
Bankers Magazine, March 1859, says, "The Board
Of Currency (of LOUisiantl presents very hatie--
ing pictur; Of the condition Of the banks. Since
the last annual report the am1uet # actual Tin in
he vaul Of the banks has been at all times great
ly in excess Of the requirements Of law, l33i per
cent and the aggregate amouu' Of specie NOD Oh
hand by them is more than hslf their total cash
liabilities whilst their balances OF fO-5.gu and do
mestic exchange is uursgaliy large In add ion,
large profits have been acquired which have euH-
bed each Institution TO declare hands me d,v.-
dends to the shareholders, aud also to increase he
surplus fund The banks had been faith.ul
in making their mon hly statements"
Hunts Weg0zHe also states that this banking
system bad made New OrItsns one o. the
soundest cities in the Ua0n, when it bad Tr v:ous-
u been Of the mJst uusCuni. This State has
the tree banking Law, 60 that capital with lraw
or enter jhe busiDess st any lime. Every so.k-
holder in these free banks in L5uisisna is Just rs
much able for the whole d, bls Of lac tank
Woods ! Altman Co we're in I, nHessee without any
charter, ard having in addition placed Sta.e boEls
in :hc hands Of officer the notes ofhe S,ste tsalf
could ardy be better. The June nEmber Cft the Bunk
efs Hdgazme states hat this law vas lol ced OD the
banks and that they b. urd 10 accept il or X
iotO liquidation, bot that ''i has since proved be
their best Safeguard, and under its provisions The
banks secure regular dividends C the share no ders
and a consistent and wise course for their Gus 0meis
aud for the whole community.
In Michigan the stockholders and directors Of
the banks are individually responsible f5T the Debts
If the bauks. Trey must give security also and if
the deposits Of a bank frauiulegily Withheld the
guilty pari are liable to three years tmpriscn
meut This is Stale younger ami has not toe
capital Of Tennessee.
Ia the June number Of the BgHEers Nagazise
find the following notice Of a bank failure '.The
assignee Of the Lancaster Bank Psnnsylvaaia)
yrbioh failed with an OUTSTANDING circnIptiop ~