Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1861-01-18
= COMMUNICATION

.srr - ssr-s Relief. --. ;
Mr.. BuRca. Do you know that reply che Bank
made to speaker Newman's inquiry as to their abil
ity and willingness to Relieve the people by dis
counts. provided the Restrictions were removed
and suspended for is months! isslF8 q IS
Itstrikesm me that this direct active sort of relief il
by far the best of all others. 1t would supply TIKI
pressing monetary necessities until another Wheat
crop could be harvested and sold-untl the present
Tobacco crop could be turned into money-and in
deed, until another Germ crop could be raised and
turned into Hogs Mules, &C., and brought TO oul
general relief. Meantime, such a system economy
would be practiced, and such caution observed II
making new debts. that the erops alluded to would
enable US to return the borrowed money to the
Banks, and the whole monetary difficulty find a sat
isfaetory solution. But, on the other hand if the
Legislature resorts to Stop Laws or protracted
Stay Laws, the Bank facilities are out of the ques
tion. Besides, the People become demoralized
through the agency OF those, who of all men, ought
to teach them that prudle rePdiGtion is as unjust and
as slSbUrsvs of genaral good as State reputation.
l.
In reply to the above we add the following: d.
Report from the Banlc of Tennessee Plaaters ana
I Union Bank of Tennessee in reference TO- certain
inquiries from die Senate IN session.
Hon. TAI W. NEWMAN, Speaker of the Senate: y
We respectfully acknowledge the receipt of a
copy of resolution adopted by your honorable
body on the 10th instant, addressed the Planters
Bank of Tennessee, the Union Bank of Tennessee
and the State Bank of Tennessee, making the in
quiry as TO the amount of accommodations said
Banks could furnish the people of Tennessee, the
restrictions were suspended for twelve months,
which now apply under Law to said Banks also the
amount they could loan on bulls and the amount on
notes. the time they could afford to discount on and
also the amount of calls renewals for the twelve
months. e ... ....s
In reply to this resolution we have the honor to
Of
could furnish to people is so entirely dependent
upon surrounding circumstances that we feel at a
great loss in stating any particular sum; that the
Banks 1.-THE restrictions alluded to in your resolu-
tons being removed could furnish the accommorla-
ton necessary to be used in the movements of the
industrial products and the enterprises of the State
we have no doubt What that sum would be ii is
impossible to say, does it matter particularly,
with view Of the subject, to fix any exact sum.
The demands upon the Banks being commensurate
with the wants of the community, the extent of this
want would be the measure of the accommodation.
Whenever there is anything TO predicate business
upon, it is always to the interest of moned instu-
lions to extend their discounts And thus. based
upon real operations and solvent securities, il is
right in policy and just to the people that the time
of discounts should with the wants of the conn-
try. Calls should be made with a just regard to
the interests of the Banks and their customers IN
der some circumstances call Of ten per cent would
be oppressive to set Of customers, when pay
ment in full would be easily met by another. OF
this it must to great extent. be matter for the
sound discretion of the officers Of the Banks. The
line of business pursues has much to DO with
regulating and equalizing calls. One business can
afford to pay heavy call, while another must be
lightly taxed and often walls for the whole sum
borrowed must be made, or the party greatly dis
tressed. Hence, the calling in the money of the
Banks does not admit of any arbitrary or fixed
standard, but must vary to suit the demands and
condition of each particular case. This general
rule however should be observed as nearly as pos
sble: In all cases to make the call at such a rate
per cent. would exhnguish the debt b. the time
it is incumbent on the Banks to resume. We do not
think the time for which the loan is made should be
longer than sixty to ninety days. If for greater
length of time it would confne the relief afforded
to a comparative few, while the .relief afforded in
two or three months notes. would enable the Banks
to dfuse their discounts. Let suppose the money
loaned on twelve months time, the amount so loan
ed could relieve set of borrowers only, while if
upon two and three months, the money paid
on calls, and, as would be often the case, the
whole face of the note could and would be
re-loaned to another set of borrowers, and
thus the benefits resulting from the discounts
of the Banks would be equally and more
extensively dlffused. Besides this, if those who
borrowed the money could not at the end of six
ty or ninety days pay call but had to renew for the
whole amount. it would be attended with addi-
tional cost to the Borrower.
We regret that we cannot be more specific in re-
gard to the points referred to in the resolution We
however, are willing, and would be glad to submit
our books the inspection of each member of your
honorable body, and to afford every information
and explanation in our power, in order that these
matters may be fully understood.
We beg leave, respectfully, to refer to the report
of the Supervisor of Banks. and to him individually
in reference to the matters of said resolution.
o. EWING Prs of Planters Bank.
J. EIRKMAN =" Union
... G. T. SMITH, F" a. Bank of Tenn.
Nashville Jan. A. 1861. 10 -.