Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-24
REMARES OF r..llEu
MA. LoCkIEART, OF STEW Art CoUNrY,

I
In the House Of Rsprsssatativss January q, 1850,
on the 5ity to Rsform and Regulate ihs Business Of
Banking.
AIr.Speaker; can not vote for this bill on its
final passage because it does not meet my views in
many respects, bUt if tue bill must pass, desire
that it shall be in Is harmless shape possible.
hope the House will not recon ider especially when
We consider this 9eotion ia connection with the
twentieth section Of his bill which says, 'That
when bank shall have suspended spLsie payments
wlliully, remained 10 that condition for greater
period thaa one hundred and tWenly days, that it
shall be the duty Of the Supervisor forth With To
institute proceedings in the Chsuccry Court OF the
dis in aich such btnk Is located, and proceed
10 have its assets subjected 70 the payment Of its
debJs and in charter declared forfeited. Provided,
however that II the Governor should be of opinion
that It is for the public good he may all pro-
ceedings to be suspended until the meetiig Of the
next ] legislature"
believe that when bank issues note for
certain amount payable TO The bearer on demand,
that the baak enters into contract Wilh the note
holder, and that they are morally bound By every
consideration Of good faith % redeem that poie
Whenever presented, snd hold that tae Legisla-
tufe has no power 20 pass any laE impairing the
obligation Of contracts Yet sir, tsis bin which is
offered as bill 20 reform aud regulate the business
Of banking in Tsnnesses, permits them 70 remain
in STATE Of suspension Ter one kuudred aud twenty
days, ana thst when they IN the language Of the
bill have "JciiftdA" suspended Yes, sir, it gives
them the power 20 remain in state OF sus-
pension which might he foT one hundred and TWEEN
" days, ia Euy ems year without violatioa Of
chsrter Under this bin bank might ailftlly re-
main in = state Of suspension four months in each
year and 'jolate its ehSrier Aud, sir, this is
bot an; evan hen III tie Governor shoHld Be Of oDi
ion hst L IS for As public good" he has toe ''OAs
nan poUer" 70 perait it 10 remain in state Of
pension unsil the hesiing Of the mex, Legislature,
which might be SIX. tEelvs or eighteen months /
longer.
And, sir, when u2yed 70 strike cat one hundred 4
days and strike %. the proviso giving TIE Gov |
ern0r this power, l. was argaed th.t balks we're |
and thst it /. necessary % give hem ths power
suspend. as proieeli1a 10 the people. That in
der % accommodate thcir customers with eEehauge /
on tifcrea points, the banks h4l 70 keep large
amounts II gol ana silver on DEPOSIT wi.h banks at
those points, aud IL these b INKS IN which they had
made such deposits ss7Gld suspend, 1t would be
ruiuo1s not TO permit TeuHess banks 10 sa,peud
also. That il was .scrssary for the protection Of
the pe0l le taat the banks should hsve this power
At first view. this argument seems 20 he someEhst
plausible; aud TO NIKE such an arguneat in favor
CT banks of exchange AID deposit, IT would, per-
haDs be sdmissabic; bus not 60 with banks Of is
sue If ihusc who deal in exchange were Alone ef-
,ectsd BY baak Iensions, tee bill you'd be lar
less Objectionable
Blu, sir, who IS il upoa whom the heaviest l4sses
b. bank suspensions and failures fslE Sir, Il is
1900 the ole holder. And wav the principal uote
lolders? Not the cty merchant AMI Spectator who
make their daily deposits, aud who 1--WE IN and hy
he sunshine Of bank favors; bus Is is tae honest
eomanry, the laboriug elassss the greater nanpsF