Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-03-21


nd t RANKS authorized to issue millions Of dollars
Ia nT FOR population Of three hundred thousand SOULS
In 1919 the whole Of them that had gone into
operation suspended specie payment win tne eA-
ception of the Knoxville Bank Of which Judge
White was CIs President
The history Of this monetary crisis, although the
slate was q BODIED with paper money, shows from
public documents that the notes Of those suspended
RorAs were ala discount OF from 80 to 40 per cent;
and cold and silver ct 80 per cent premium.
Rankruptcv ruin and general distress perTadet
the whole State, and Gov. McMlnn 10 his message
recommended in order TO relieve the distress on
the eouatry,-frst, The staying Of Judgments for
two years; Oro compel creditors to take Bank notes
Second A general redemption law. Third, The
exemption Of certain property from eXeeution-snd
lastly he recommended valuation law. In 1920,
he said that general distress still peryaded the
c5untry and was marked with permanence.
In 1921, Governor Carroll in his message 10 the
Legislature, protested and advised against State
Banking and exposed The ruinous policy Of the State
engaging in the business Of banking.
To relieve all this distress Of 1920, produced by
srosssi0s Slate banking, the Legislature chartered
the old Bank Of Tennessee with capital OF one
million. Isl 00,000) a branch at Knoxville and a
Loan agency in each county in the State.
Now commenced sple1 lid add popular scheme OF
Stale B.nking to relieve tie people from The Injuries
Of Djudici3us banking aud tae excessive issues OF
paper money.
Take the period from 1916 to 1926, during this
! system Of State backing, aad you will find that
shinpla.ters reigned the whole time, aud some
Of these swiudling machines cold their gold aud
silver al premium OF 30 per cent while Iasr own
notes were at 40 per cent. discount!
In 1923 the notes Of ;he Fayetteville Bank, and the
Farmers' au1 Mechanics Bank, at Nashville we're
/ worth only % cents il the dollar!
! n 1929 Gov Carroll warned tae Legislature
/ against the policy Of State banking and protested
/ against employing the funds Of he State IN bank
/ ing.
Evelvth,ng looked vel Tae accounts all balanced
the BANKS liabilities put down a. 81, OtO o4S
84l, aud its asset the SAME, Sl,OfO DAY o45
/ looked we'll The investigation was PEI lected and
! in 1898. when tue Bank vas wouad up, the actual
loss 70 tae slate stood as reported by the invest ga
ting committee 1882 T64 65A one single individual
, being hiusaf 3 defau.t5r 20 the amount OF saw
1 333 OG.
The whole of these facts aud figures are copied
from the public records, aTd can be found en- Ele IN
/ the State Capitol
! The Uaicu and PlGnters Banks are stocS BANKS
! They we're chartered IN 1892.
! The Safe had stock in both OF these Banks, from
which il derived good dividends TEdyelrs ago the
| stock was handed over TO the STATE BAnk, and VIII
be examined after awhile.
/ In 1898 The Legislature chartered tue Bank Of
Tennessee providing that its capital should be So
600 600 This amount, however, was never procured
for the Bank, and the first report made 10 the Gen
eral Assembly in 1889, shows capital OF 81, 49,
! 7O6 This amount has been added TO from time to
time as will exptala ia The sequel, uuill the caPi-
tai ought nowssto be over 100000.
The capital, il October, 1884, made up Of one
million Of STATE Bonds, the surplus revenue aud
School funds, amounts as by report 10 So 10
| The operations of the Bsuk-its Liabilities and
means after about len years OF existence, may DC
seen from he following analysis Of he report made
M 10 October IS47 aud 90 tais analysis l direct
the attention of the senate and invite the closest
| scrutiny:
q IHi3q If the Bunk Of Tennessee from Report o. tx
I President, made up to let Of July, lo47.