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

ire circulation Of this bank has been nearly sll
redeemed ~ The receiver; and or al adjusted
claims twenty hSe percent is being paid An assess
ment viii soon be lnade on the Stockholders To Enui
date all of the outsia-dirg claims - sasketts
tarbor Bank The stockholders Of this bank were
hotihsd 20 appear before the Hon n r Hall. at
MS oHiee IN Buffalo, 80 show. W.eause why they should
not be assessed, 70 satisfy . balance Of existing
Claims sgfnst the bank" They have about 800
banks Under this free banking law and The bank
m0Ggers are iaaeta5ie if hsy DO not show their list
Of stockholders TO the creditors 80 as 10 enable
tham 20 sue then If the bOuds don't pay them eft
Inc 'bdHteT's A1gIsiHe says, this syslen has been
geuarally successful and il the April number pare
e24 hessys, Free Blaks The general baakiar
laE which We had hoped to see enacted St this
session CT the Legislature OF Pennsylvania has
apparently come % untinely end. This is to be
regretted, as such a law is decided improvement
Oh the Plan Of getting special charters. Il would
P'0tsct tAs Ph53c against loss consequence Of reckless
speculation on he part Of the banks gre % ne holders
o cans o'ls he double security Of STATE stocks and
Pa'a up capital. There can be no good reason Ehv
general backing law should not be passed ulder
"nlca All new iostiiutons Wouli be incorporated /
Win seclre1 oirculatlou, and all the provisions
OF WAica al tae existing banks would become sub
JecI Ehsn iheir special act Of Incorporation ex-
pre-. Mr. Homans, whose journal is the organ CT |
oshK interests N tie UaIted States, considers /
security absolutely necessary to The public safety
and that il is no hard restriction on tie hanks
shall not g iuto the dsrent States in which tne7
require security and in which they REQUIRE indivi-
AL liability it is sufficient to ksow that old states
WITH much capital such as Virginia New York. Coz /
neoticut and others snd in new States Tft5 bu lte
capital such as Missouri AliehivsD Tlnois Tnd;ona
Florid1, states, some OF them With less capital tbau
Iennes ee, have required security and indiviJusl IL
ability 70 some ex-eat DO not stand here 10 vo-
cate aoy general aF. but u advocate individual ia
billy auI security, SO as 70 give increased protection
U the note-h1ider according O. the platform That
/ protection which the eldest hank ioursal ia ths
I country thinks right and necessary. Ia Virsiaia
where they grant charter, the stookhcld nlust
deposit security and be liable 10 the extent Of their
stock ous Of their rs0usl property. There are as
many backs thers ia most OF the States. Tseir
bank notes iacre are es safe as tks notes Of the
State # Virginia. If Bank bills bes permit ted 10
circulate as a substi ute for gold aad silver, they
ought 20 be made secure as the notes
Of the State, and if the bonds OF iha Stata
are pledged Tor them and the bonds endorsed over
lhey will : safe. Aud Whaj sort OF b)ads shall
bs taken here! Toe Stale has issGsd bes bonds
for say S4OOOOO0 she mas endorsed bonds say 90
I the am3uut of SO. O.0OO, ,0O0 If the STATE had S.
I 100000 currency loaned State bonds AID on
endorsed bonds, if the houd5 were al owned by he
bankers, Il would retain in the State $3.50 090 of
interest
II half tba. amount Of interest Eas retained in
tAe State by the system t would be a consideration
which ought to weigh the adoption Of lhe system
But any security IS better than none. Ths bonds
Of auy State in the Union are better lhsn no saeu-
rity, fo5 they al pay the iuierest-Dons have repu-
dated. The bonds Of Nashville, Memphis, KaJx-
vile, New Orleans Chicago, st. Louis, and Of any
other city in the Union that has issued evidences Of
debt are better than security. The bonds Of the
counties Of Tennessee and Kentucky are better than
no security, for although they might not be 80
readily convertible, they would, in the long run.
probably secure much If not a total protectsn TO
the note holder. | would rather have deeds OF
trust deposited IN the hands Of the Comptroller AZ
I'd New York or rauie vfr "a. ~, o. Z
double tne value OF the notes for which they are
pledged exclusive Of buildings, uneneumbere and
productive" would rather take their security for
bank issues, snt although 10 would bo so readi-
ly convertible into cash, II would give confidence
ana stability 10 the public mind abUu. the hOtes,
and be positive securiy, except IN eases OF the 9
severest ard most long continued crisee.
pledged myself u my constituents 70 try 10
give decreased pr0leclod 10 tie note hOlder, and
viii n3t iEaugurate IN this S.ale new career Of
speculation loss, aai Ir4ud 10 last af,een or lWen
y years or more before il be arrested. But it
Is said the free banking sys.em has failed in Ten
Bessee. / advocate no sys4m, free OF net free [
have introduced no b'll organize banks | advo-
Gale security TO TIE note holders iC charters aud
bPuk laws brought forward by others. [ advocate I
the free Of the Jail aud the penitenliary 20 pun
len wholesale frauds in bankers, and have iutrOduc-
ed bill 90 that effect. DO not 60 for destruction
Of all paper money. 60 for the securities advoca-
ted BY the most experience mea IN tBe country On
the subject Of banking. ,
want 10 psper money 81 all, or good paper
mOEey-just good as # The STATE had endorsed the
notes want he people of the counties CT Hlrdemsu
McNary aud Hagdin whc seut ma here, to have good
money, or 10 paper money at all For this l will
stand till The last day Of the session. aud 20 home
to my constituents and tell them what I tried 10
ge-a paper currency secured by property, and that
voted against al bank bills WIich did not secure
the note-hoier.
Bat sir, tLeIe are now in this State in operation
q number Of banks with cap tai Of about $500 OOC,
which have put bonds OF the Stale in the hands Of
the ComptTol 10 meet their notes. There are now
probably 500 banks in some ten or more Of the
States Cf this Union which have pledged property
to the extent Of their n0tes. Nov, can any one be
reckless 10 assert that thsr notes are not more
secure than the notes Of banks which have given no
security, whose stockholders sre not responsible,
and who hold all the assets Of the bank in their
own hands How much have the people lost by
the free banks They lest absolutely about $780,
600 by the Exchange Bank where the bonds we're
either not deposited at all or we're withdrawn. or
stolen. Ii the bonds were deposited aHd had
been assigned on the back Of them for the benefit
Of the stockholders Of the Exchange Bank, and
properly registered they could not have been sold
in the market, and the loss Wou,d not in all proba-
bi,ity, have occurred. IL should be made an offence
punishable By confinement 10 the penteHtiary for
net less thar hree years. m either the Comptroller
or banker TO orculste notes vii hOut the security re-
CURED By Law, with the intention 10 defraud the
rote-holdtr.
As 70 all the other free banks the notes Of such
have gone into liquidation, either voluntarily o.
invoiuntaTily, have all been redeemed, believe 70
the last dollar. Can as much be said oi the old ,
system. where no security given for the stock
holder? II cannot shall not undertake The IN
pleasant task Of setting forth the losses ~ all
Is most probable hs parties did Ht intend so
wrOng IN The first instance Bur the losses Of the
stock banks have been over Ehelmingly greatest in
all the States Of the UDion, and The security has
hecn required n consequence Of such losses. 10 /
The of things II could not be Otherwise lathe
Stae Of New Yo:k, the present Governor said that
that in the Of the failures ofthese tock banks
the loss amounted 70 fifty per cent whilst The whole
Of the loss By free Gnt secured bsnks nad been
only 800 d9llArs and that this the result Of ]
fraululeut m1r cages and the superiut -udlHt says
that was the sole yOlivo loss b. want Of eds 10
nsct notes in the course OF three year. Thig /
is mos; ut,restiuE event in The history Of hanks
Mr.. iamtns wa 10 favor Of ock backs rs will bs
seen hy his Commercial Directory, before the lac
suspension, but as viii be after the crisis Of
1851 trok ground against IL aad in f3vor Of n
se:urc1 and free currency Why was thisy
Deoguse he had Ia NeE York, Louisiana,
and every where else that the people bad suffered
less by them and the public hsd been uzdsr that
SyS;en cured against fraud; az The ssms lime /,
iaAt they had paper circulation amply sufficient
g. meet real OF supposed commercial wants.
Our lave ought g. be equal on all All mea engag d
in the business ought o. have equal prsileges and
equal rights aud be placed on The same platform -
This can only be done by ruling all the future
banks, rs was dome ia New York and other States,
10 give the security required by the general law or
release al the existing banks frcm The security
they have deposIiPd and return them the siK hHu-
Ore thOussad dollars 90 b5nds now in the hands CT
the Comptroller O. redeem their notes IN case OF
failure.
Those who vote 10 create new banks wi hCu! Sc
Guilty TO The note-holier ought, every principle
% justice and equity, 90 release the sttCkholiers
Of the free banks from toe requirements 20 liye se
curity aud return TO Them their bonds Nov, sir, q
am not prepared - inaugurate sDy new opportu-
nifty fer suspensions aad frauds IN large baaks CT in
small banks, and system Which Wlil be adopted
will be satisfactory bat that which offers substaa
;ia security the paper circulation which may be
ie.usi.
But ibe worst defects Of this system noE attempt
ed 10 be commenced IS that the bin brought tor- .
yard 10 secure to the banks vested rights for 6iLeeu
or twenty years closes he door against al improve
mpnls Of The Cystcm.
Il proposes t5 take away the power from The Leg