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


which constitutes part Of the capital, amounts to
ST, 100, $50
Tho statutes OF the State affirm that the School
Fund amounts 10 81, 500, 600, making a difference
in their estimates of 1919 40 Sc. Instead, then,
of The capital Of the Baak being So 679 069 it seems
to me that it ou5 to be four millions o. j.
lars
If you take the the capita. as reported to the
General Assembly of l847, you will fad it TO be
be S3l91.2I5. Adj to this amount tde stock n the
Union Bank 1904 494, aud the stock in the Planters
Bank S232, 700. which were added TO the capital Of
the Bank Of Tennessee By the last Legislature and
the amount will be S4,O6,i, 4O9
Again: II you take the surplus revenue, which /
understand 10 be ST. 1885, 209, and add il TO the CAPT
tai instead of the $685., $40, reported Sy the
Bank. you will still have ever $4,000 600 Of capital
in the Bank.
If I am correct IN these estimates aud calcu-
lations (aud 1 think l am certainly Correct
as to the surplus revenue, it appears that much
larger amount has been lost by the bank than IS
supposed The liabilities and assets Of banks as
made out on paper always equal each other They
are made TO do 60 by the rules Of the bank aud 1t
is one Of the duties OF their Clerks 10 make tbs
means always equal the liabilities. And | suppose
if a clerk in a bank could not did net, make hls
books prove that he would very soOu be dismissed.
It will not do then to conclude that ba2k Is solvent
and doing we'll merely because the assets equal
the liabilities "a made on: in its reports because
broken bauk will make the same exhibit. This may
De easily enough understood wneH reoollect that
the term asses or means in BIak Reports include
the bad AID doubtful notes as vel as the goot.
In Offering this bill to wind up the BluE OF fen
nessee do not wish 10 he understood uppySir z
banks am the friend snd advocate Of banks -
believe thai tney are essentially Necessary to carry
on a healthy and prosperous commerce, and that
no country cau prosper without banks. Bat Ger
tainlv no man will contend thas it IS wise policy in
a State to set herself up trader IN III commerce
of the country dealer 10 exchanges, and ship
Der Of produce in competition with Der citizens
If the Bank Of Tennessee had beea under the con-
trcl and management II hose who had Pecunisry
interest in its well being 1t would III all probability
have done well as any other Gank Bus whilst other
banks have made large dividends for their stick
holders the Legislature have been under the neccs-
sit from time to time Of assisting tae State Bank in
order to enable it to keep up. Every adVants sc
which could be extended 10 it has been extended,
and still it suffers by comparison With some others,
and no one who understands its operations believes
that it can maintain SAFE or eT,n respectable
status in competition with its rivals
The parent Bank has but little control over thc
Branches and some of the latter have been 80 bad
" m mayed that the notes payable at their counters
have accumulated in the parsnt Bank, at time,
N mora than half million on account Of their in
ability to redeem them Sill, the Legislature re-
fuses to give the parent Bank control 9th Branches
while il continues to hold her responsible for The
forthcoming OF the entire capital Of the Bank. Il
unders God here and l suppose will not be denied,
that without the support o. the parent Bank some
of the BrancheI would not &c able to IN nntaIn tae'
credit month If the Branches, or any one Of
them fail the whole concern suffers, and tAe parent
Rank Is compelied in order 10 preserve Its OWL
orodit to preserve the credit Of It's Branches aso
And as our Governors Dauk officers, dir, ctors, and
all who are conversaut with it's operations, declare
that it ought to be pr into state OF liquidation
have introduced this Bill and urge its passage.
The objection heretofore made against ling uE
the Rank of Tennessee was, that We did MT have
banking capital enough. This oHJec ion cau not be
urged now There have been banks enough char
tered nv this Legislature 10 answer all tie purposes
of trade and commerce.. Banking IS the business OF
individuals ana should not be engaged IN by The
State and certainly it should MT De done, Wien
the State borrows the money to bank with There
IL no abatement for any man TO seek Position IL
the State Bank except for the salary paid hin fol
his sprvi,es Positions ia the Bank are sought af-
Ter bv men, not ID make money for the STATE, bul
% make money for themselves, AID consequently
there are often and repeated applications to the Leg
isature to increase the pay OF It's officers sndto IN
crease the number. Every man almost seems 10 he
Influenced By the principle, that as the State owns
The capital she can afford TO pay large sal
arias and ought to pay them, and all try
t. see how much they can gel for themselves rahel
thsu how much they can make for the STATE Ihi'
however, is nothing more than natural propensity
and if the State loses her money she ought l. a.
t,brts il To her own foolish policy rather than ~
the Encouragement or dishonesty Of the Bank til
GERS Nothing better could b. expected from The
system . =,
The Bill on your table, Mr. Speaker, proposes to
vipd mn Ibis Bank Il effects its object by an easy
COZ, o5J certain prooess-po debtor Of the Bank
need be oppressed-ll with the exception Of draw
era Of bis payable Of the SAFE have nVe years
10 nav their liabilities, interest includet Ia tn
equal seni-a annual instruments, by securing 'hg
49, TN. viII ensure tho collection Of many bad
dobts and ofs1He which would otherwise be event
nsIIy l5st The expenses of the Bauk are stopped
almost A. once, aud the Bank wall 20 OUT OF eN'I-
fence q, gradually that NJ oue will feel the less Il
will expire like the chickering's Of candle Ia ils
-o.-s, horizon. Ieav:0g trust, not cloud behind
IL and none to mourn its departure bu' those who
are fatteniug on its substance.