Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-21

have not violated t1elr Charters
Bal suppose back shcnld anspeRd for period
Of one hunira6 snd wenty in the same year What
remedy 90 We have ay The provisions og the bill
Der ronsi isfatonf Here what the b.ll proposes
to do ID shall be the duty Of the Supervisor forth
with TO CAUSE proceedings to be Instituted IN the
Chancery Court Of the District where the Bank is
located il the name Of tie Stale Of Tenue-s see.
agaiast The BANK u haze It's assets subj cied the
payment o. its dees. and its charter declared be
forfeited provided however, that if the Governor
shali he Of opinion bur it il fog pubic interest
thai ouch proceedings shall not Be instituted, he
may, in writing, declare 10 The Supervisor and
suspend al proceeding theeeon, from time o time
unlil the meeting IF re Legislature
Nov, is not this montrlus propositioni 10 the
first place must grant u banks exclusive privi-
leges which we deny 9 ne honest citEen; allow
ing those engaged 10 The business of banking 70
reap rich reward at tire czpense OF the productive
lsb0r OF the country, and when they fail to pay
their debts instea2 Of providing q speedy remedy,
il is proposed ihat the Supervisor shalt commence
Proceedings against such deliaqusRt banks, md
saen if the Governor should thiak proper be can
cay the proceedings until he meeting Of the Bext
Legislature, which may be nearly two years of.
Sueh proceedings will prove in my humble Ju5g-
ment wholly inadequate 70 meet the emergency. l
therefore propose 20 make the peualty for suspeu-
sion Of specie payments by sny bank in this State
a forfeiture Of its charter.
Allla IS the Only WGy We Chr EeAeA A4tiAs 1 MltA
guarantee that no bank Of any importance viii sus-
pend specie paymens If the penalty prescribed for
such suspension is an Unconditional forfeiture Of its
charter. ask nothing more and viii lake nothing
lest
/ offer the following section in lieu Of section
twenty Of tais bill:
SIC. 20 Be Il further enacted Tket when any
bank chartered under the provisions Of thls aet
shall suspend specie payments, it shall be'the duty
Ct the Supervisor to notify the Governor Of such
suspension, whea the Governor shall Immediately
declare the charter Of snca suspended bank forfeit
ed, and appoint receiver b WED up the business
Of the bank as provided BY amendment to section
This is the remedy propose for a suspension.
Nov come TO gection tWenly-tlree. will hasten
through, for l do not iatsnd to consume much of
the time Of the House Let see how this section
reads:
Be a further enacted. That when. in the opinicn
Of the Supervisor any bank in this STATE shall haze
exceeded IFS chartered powers or vioaied the same,
il shall be his d0tY 20 report the fact, with his
SONS thsref,r . TO the Governor Of the States upsn
suoh report being made il shah be the duty Of The
Governor TO submit the report Of the Supervisor 70
the judges Of the Supreme Court, With any state
meut the Bsak may prepare ani verify under cath;
aud il shall be, tbereupor, the duty Of n Supreme
Jadges, after hearing any discussion tha they may
desire thereon II they, majority Of them should
be 81 opinion that there has b3en any abuse Of pow
OF hiOdblUu u LAc CldElGt DA INC AsplL-
with TO give their written opinion that effect, to
the Governor, VINO shall report the TO the next
session OF the Legislature aud the Legislature may,
thereupon repeat, alter, abolish the charter Of
such Bank. Aad if the Supreme Court declines to
give opinion, it shall be the duy Of the Governor
70 subait the report Of the Supervisor the Attor-
ney General Of the State, and if they think aay
Baak has exceeded its chartered powers CT vioa'ed
the same it shall be The duty of the attorney Cen
eTal to file bill 10 the Of the State Of Te =
nessee in the Chancesy Court Tor the Dis riot where
said AK is situated; and when il sha be legally
ascertaiaed in this way that aoy Bank hal exceed
ei its chartered powers or violated the sare tho
Governor shall report this fact to the next session
of the Legislature, and the gsiaiurs may, there
upon, repeal, alter, abolish the charter Of any
such Bank.
I propose thlt the Supervisor shall notify the
Governor Whenever he believes they hsvo VIOLA ed
their chsrter, day il shall be TO lay the ease
before the Attorney General TO exsmne. and upon
bis written opinion 10 the effect that they have vo
la ed their charIers then the Governor sail imme-
dately notify said bank Of the forfeiture of TIE
same.
The amendment I propose win be to strike out
the Wor1s Judges Of tue Sap7ens Court, and in
sert IN lea thereof the words Attorney Geueral
Of the Staie;" aad STRIKE out the words fSurreme
judges where they occur AM all thereafter and
insert Is follows: The Attorney General, after hcal-
iag the evidence if he shall be Of optaioa that
there has been any aouse of power or violation Of
the charter Of the balk, shalt forth with give his
written opinion TO thst effect 70 tbs Governor, who
shall Immediately notify said BANK Of 8 forfeiture
OF its charter, and appoint q receiver provided
in sections six ard twenty" TLis is Pr0visioa
that will reach them But If you are going t. sub
nit the to the Supervisor then he Governor,
then to the Supreme Court, then back again to the
Governor and then TO the Legislature. viii y9a
ever reach any of them? No, cir; we Rad Just as
well strike al the penalties, and leage them free
to prey upon the liborng classes they have done
heretofore.
This brings me to the consideration Of section
twenty five which deem o. more Importance:
SEC rs. Sc IL further enacted, That each BtRk
shall be authorized 10 discount notes, payable in
this State al The rs,e Of six per cent per anuum;
and il any bill or note hus discouuted is payable
al any point DIFF Mt from that al which the bank
is clted it may c0lieet, in addition to the six per
cent discou1t. the sum il viii cost to collect such
bill or ncte, if paid a. maturity"
Tat much I DO not deem Objectionable, although
some Of my friends do
But the following provision demands particular
and each bank shall be authorized 20 dis
count bills pay able out Of the Sate the rate Of
six per cent. per annum with reasonable exchange
in addition thereto.
Now, Mr. Speaker in the name Of sll conscience,
Want1o know what is considered a rea-on.bie rate
Of exchange? Upon what principle is this question
to be determined? Before what ,ribun Al are we 10
have this matter desided will tell you It is to be
determined by he c3nseiences Of set CT irresp0n
sible bank directors and in obedience TO the
stiles Of the country.
The result Of il is that having unlimited p5Eer
to charge for dscOantng bills they will eharge any
amount they Gay think proper object 10 suca
attitudes, and desire to the banks in u:b
manner will protect the people from imposition.
am willingto ALLOW the banks 70 charge fair rate
e. IL IL, IL,
Of the State but an unwilling to give hem unlim-
tied power to charge those who nay desire such &C
commodations.
l. is only upon the plea that banks are necessary
for the public good, that the eonstilutonaiiy Of
their charters can be successfully defended, and
since this plea has been deemed valid and charters
have been snd will be sgan granted upon tie pre-
sumption Of such necessity, it is Al least our duty
so to restrict them to protect the public ffoG.
detrinent.
propose to modify this section Of the bill b. ia-
serting the folio sing: Provided That no bank shall
be allowed to charge exceeding two per cent add
tional exchange for diseountiDg bills payable Of
the State and thai here Alter bank in this STATE
shall oe allowed 20 invest Larger mount OF its
means in discouating bills than in diseountng
My object in inserting the last ause IN the
above section, is 60 prevent the banks compelling
persons to draS bills payable At polnls Ia
stead Of discOunting good note, in order that they
may charge THIS reasonable ecchGHge, mentioned II
the bill under censid rat on.
The enhaBeeI pro6t' arising from the discount
ing Of bills over notes is well understood by the
banks They are not permitted by law, to charge
exceeding six per ecrt for 7scounuug noies, where
as taey frequently realize from leu fifteen per
cent in DESIGNATING bits basel u9on the productive
labor Of tae country. Tnis is discrimination
again.t the abOring classes that should be no long
er tolerated
This brings US to the twenty sixth section OF this
bill, which reads thus:
SEC 26. Be It further enacted, That each stock
holder in any Of the Banks Of this State shall he
liable for ary loss sustained BY the
creditors Of the institution
TDis far all is rght and If the autaor Of the bill
had stopped here, there would a. least have been
one redesming feature ia it, but instead Of this, the
notifications IN the blauc. of the section efecluai
ly counterast this. Here is what follows: - To
the amount and value Of his tick, unul he has
paid the same ia full on his original subscription.
And if any Director or Directors If any Of the
Banks in this State shall be guilty Of any fraud OF
wilful nismanagement OF the affairs OF such BaLk,
By which any loss shall be oceasisned 10 its credit
ors such Director or Directors upon iega! Gseer-
anment of the fact, shall be individually liable for
such loss and all the stockholders asseating there
b.. shall be liable in like manner.
Until be has paid the came in fnli Of his original
subscription Jast as so0h the STOCK IS an paid
"a -.rr, -