Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-17
BANKS AND BANKING
REMARKS OF
DR.. GEORGE B. PETERS,
UN TIE FIsUFOsIIIUN 10
ReChaFtsr the Union and Planters, Banks,
In the Senate. J1Rltqyy I3 1860.
ON THE PRopos1rIoN rc

ReChaFtsr the Union and Planters Banks
In the Senate, january I3 1862
Mr. Trimble's bill to renew and extend the char
ters Of the Union and Planters Banks having beel
read
Nj. PETERS moved to strike out the first sectior
! of the bill and insert the following:
SEC lsT. Be It enacted 6y the General assembly o.
the State Of Tennessee, That The President and Di
rectors of the Union aud Planters Banks ar
hereby authorized continue the business Of bank
with their present capital stuck the term of hfeeI
| years from the expiration Of their present char
ters subject to the following conditions, to- ait
Ist The President and Directors Of said banks
shall make deposit Of endorsed bonds as seeuri
ty for the circulating notes. in conformity with the
free banking Law heretofore in force in lhis State
and 10 other respects comply With the requirements
of said law and be subject the provisions thereof
/ 3D. That said banks shall keep on hand ia cJiI
| 25 per cent Of their cash liabilities
3d. That If at any time SAID bslks fs!l below said
proportion, they SHALL cease ts make further dis
counts or contract other liabilities, till they bring
/ themselves within the above proportion
4th That if the President aud Directors, or any Of
them, snail WHfully, Intentionally and corrupty
violate articles aud Of this section al those as
senting thereto shall be Individually liable for all
the debts Of the bank, and shall be subject 10
c;ment as in other cases Of misGemeanor, aad on
conviction, punishable accordingly; but violation
of said section shall not work forfeiture Of oUrpO-
rate privileges.
9Th Thai the major part of the stock shall be
oWneI in the State iu the course Of SIX years from
the date Of expiration Of the present charters and
the stock owned by nOn-residsuts shall be scaled
in equal portions in HO four aud six years. that
the major part of the whole stock shall be owned il
the State in six years aforesaid or rtj ,cted as
stock from the books Of said banks.
9th That ,he stock owned BY non-resilents shall
be lisie for taxation in the county in EhIch lhe
bank j. situated and shsll be subject to taxation,
from lime TO time other bank stock in this Stats
is subject 20 tsXstion.
7th. That # the stock not owned in the State be
held in ne name Of citizens o. the State it shall be
subject to f5rieiture, and the Attorney General Of
the State shall file bills, if the be necessary, ia
his judgment, to carry the provisions Of this act in
t sfscl
The amendment having been read
Mr.. PETERS said
Mr.. Speaker: t9id my people that l would en-
desvor so far as my vote concerned in the Sen
ate to furnish them with sound, reliable currency
and now IN the fuIflmCnt Of that promise | cannot
in accordance with nay Judgment vote for the bill
Of the Senator from DayiisCn, without some mate
rial alteratious-a bill as l conceive, eouferriug
powers too extraordinary on the Union and Pan
ters Bauks for The security Of .be community. Sir, .
generous constituency gave me near 900 votes ma
jOriy in three counties my competitor, and seEe
Ia' hundTvd over Gov Harris Why Was this? Becsuse
had more frequen. opportunities to pledge myself
to the support Of such bank reforms would throw
around your bank mouopoes sgch salutary reslic-
tions as would emsscuiate their power u intIct
wholesale injury aad plunder on The people. l told
them l would never give 10 q bank the power to
suspend and withhold from honest creditors their
Just rights and a. the same time empower hem to
wiring debtors the last dime due Of their iLdebt
edness; that | would not assist IN creating power
greater than the people, by which few are built up
at the expense Of The masses therefore, 1 cannot
vote for that bill il is from honest conviction
Of 3 sense Of duty TO my constituents. should De
false to myself and dntrue TO thO7e who sent me
here Bu,, sir, l can vote for bank With such
secure restrictions as have proposed IN he amend
ment TO the Senator'S bili, where, as l con
ceive the banks are endowed with lat'tudinous
power without any provisions TO prevent them from
becoming oppressive and tyranpical mOnoPolies.
regard the charters Of the UDion and Planters Bank
proposed on the cid ointsock sy stem Of banking as
destitute Of all real safety, and all real security 10
the noeholder TIE assertion that large conf
dence bank s safe the country, where the owners
can Withdraw the whole Of she effects in q few
weeks and leave a million Of dollars in the hands Of
a credul9us and abused people is too shallow pre-
teuce to combat Such q charter ought TO be enti-
tied an &C; 10 encourage fraud" No temptation
to vlany could he greater han is held out by this
reckless grant Of charters and The whole history Of
the country SHOWS it. The owners Of the concern
can at any time pocket the whole Of the effects Of
The bark sud leave the notes in the hands Of the
people worthless oak leaVls, Eitnout The power
sven tt arrest them for debt much lees incarcerate
them in Stale prison and the d" confidence men"
may set to work 70 build up another "institulon,
with the hopes that thcy will light on q mere honest
set of men next time. The whole concern rests on
the honesty of the men who mey happen to get It IN
their hands for the time, The outside spectators
say that these fellows are great set CT Iogues or
wasn't they set Of reckless scGmps 20 break that
bank 10 that way; AMI Iheu Say, well We must iOsL
out for a better set Of IL Lext time, and then
specul4toTs and adveuturers ret about getting up
another swindhng machine Ia which the property
of nobody is responsible Individually, and nobody
punishable for fraud Tn is what is called "con-
hdtnce baking hy the Auditor Of Indians, aud
the advocates Of such systems couhde much, they
permit millions Of paper promises to be issued Gs
money, ard permit the men who issue these prem
ises 10 pledge thing but What they convert Al
pocket in month, and nova of Witl IL, an you
are vihout a law to punish their frauds or reach
their property. This would be a sound curI ency
vita a vengeance.
The charters now before the Senate are ICON
fdenee bills" They rely on the homes Of
men to save the community against losses by
the million, and these Losses TOO tosiall, almost
exclusively on the laboritg masses, remote
from towns, whj never hear Of frauds or
bauk failures until s'all is over" CIuJOt 20 for
any GuCh Commence UA-AlIBs i WIZ ut LtlSb the
safety Of the whoe people the honesty If few
bank directors Eil! NOS put half million Of promi
sps in he hands of the public with no properly Of
individuals 10 answer for IT, and jail pentea-
tiary in force 10 reach the men who b-eak their
half Dillion Of promises The sheriff in my couu-
ty is an honest man and collects much money on
execution but his individual property, though liable
is not a sufficient guarantee that he will pay il
over The Legislature has declared that he shall
give bonG with g5od security that he pays over all
that he gets into his hands The State loe5 not act
on "Condience" in any thing, but paper money
Ii is idle 10 say 20 ne that ihe directors of the
present banks are honest men. l don't know WHO
they are and never expect to know. They may be
honest. They may not be honest. don't know
how long they may live or continue in the banks
| They may be removed by the stockholders because
they are too honest, for aught 1 know.
They may not be willing to declare divideads out
of the capital stock a. The bidding Of the sockhoi
till the whole concern Is empty skell yet it
may be done by others They may declare dividends
Of hs capi al OF stock make up for losses by
frauds and ueglects. and conceal 1t to preg6n
removed from the board ill he whole .hiHg :
rotten hulk. These arc all N stters that have been
! done under The system OF q" coUfIs nee banking"
and will be done as lorg c9ufj, nee banking is
| sePt up. Don't tell me, sir, thar honest meu may
] be obtained IN commercial oommunities to take
ohsrgs OF bsaks. 1hsy may or they may not
make no charges
The sy5tem Of 'con6d,no3 banking" if adopted
in relation to one or i've large banks will be adopt;
cd all over the Stale aad ought TO be- for if The
/ system has benefits all ought to participate in ia
/ advantages. l an not confident enough in the
ncsty Of men 90 rust to them TO fulfill their prom
ises. when their property is not pledged AMI when
there is no law 20 puoish hem for breach OF their
| duties. In majority Of instances their promises
might be fulfilled from a regard for character and