Clarksville chronicle. (Clarksville, Tenn.) 1857-1865, 1862-02-07
TENNNSSEE b LEGISLArNRE.
SUBSTANCE OF THE REMARKS
L7erGt aae of a ltin.H1
M R. X q N N EDY,
Of Montgomery,
On he -Bli ifoposng 10 ass,ane he C6stedefots
Tar and require the Bank Of Tennessee 70 Pav IL

When the question Of Assuming the Uonfedttat,
war tax, by the State, was FIRST seitnted. was in
clined to favor the assumption buthpon reflection
and thorough ekanlnatloh Of the whole question,
am lead TO the conclusion that Il s Hhwise and
inexpedient for the State TO interfere in the Halter
As for the bin now under consiaeration, reddring
the Bank of Tennessee 10 pay the war tar, by ali
issue Of its notes, have never for oihenl doubt
ed but that II Is WRONG in theory, woiid poye ri.
inous in practice, and that 1t IS perhaps fraught
with more danger thanauy bill that has been before
this house during the session. am impelled by a
sense of duty TO the people of Tennessee and tJir-
ticnlsrly that portion which have the honuf to
represent ID raise my voice against its passage and
shall briefly give my objections. - =
| beg leave TO call the attention of the house To
the provisions Of the bill First the State assltiss
the Confederatew war tax second, the Bank of Ten
nessee Is directed 10 pay the tas and 10 enable il 10
do So is authorized to issue three dollars of cir
culation to one Of capital; third, The faith and
credit OF the State are pledged for the redemption
of the issues Of the Bank fourth the Governor Ii
directed 10 issue the bonds Of the State 70 the
amount of the tax, which shall not bear interest
and shall be deposited in the Bank fifth an annual
tax Of Eve cents on the hundred dollars worth Of
property, and fifty per cent on privileges is levied
TO reimburse the Bank. .o7i
Now assume the position that an unsound, de-
anu iffcuetnldDe currency, is one one OF
the greatest curses that can be inflicted upon free
people. think this will not be seriously centro-
'erted by any one, and think 1t, is equally clear
hat requiring The Bank Of Tennessee to issue two
billions OF circulation 1.-THE supposed amount of the
var tax, based alone upon faith and credit with
n hope Of reimbursement in full FOR twelve to ff-
ten years, when it at present probably has lar
&c circulation than at any time in its history will
pae 1t out Of its power TO resume spesie payment
for5omething like that period Of time /. Is also
maIfest that the other banks in the State cannot
resrAe specie payment while the Bank of Tennes-
see r,nains suspended then Il Is apparent that
the passage Of this bill win nfct upon the State
deprecated and irredemable currency for from ten
to hften years, and am not sure but even worse
coaseqehces than thlsmay result from such action.
such over issue viii, in my opinion, greatly
lJeopafdhe solvency Of the Bank, and may result
IN the es TO the State of much of its capital
Assuring that am correct in the position that
the passaeof this bill would infct upon the State
an irredtmable currency for at least ten years,
now propse to show what the payment of the war
tax by thplan proposed viii cost the people Of tile
State thecurreHcys will, necessarily, during this
time, rate realty below the standard of gold
presume nome familiar with the history Of former
periods OF hnk suspensions and the reign of shin
plastes will oubt but the average depreciation will
De more thaiten per rent. Ithink fifteen would
ne nearer Climate, bit will accept ten for my ar
gufneht 40 suppose 1t will be admitted that
the tnpofatlui from abroad aud from other States,
when we have,pen ports, will average twenty mil
lions annually. + am satisfied this is much too low
an estimate Oon this amount ten per cent viii
will be annualpaid for the depreciation Of the
currency, which'ill make Two millions of dollars
ANNUALLY. and twety millions in the ten years If
am correct in the estimates IL will cost twenty
millions Of dolisfso pay the two millions war tax,
cleat loss Of eihteen millions dollars, besides
boarding the aPits5f the Bank and crippling our
commercial and mahfacttfihg Interests, with a'ie-
preciated currency ten years. The loss thus
indirectly sustained isil MT now undertake to es
tiiate, bit you will 'eadily perceive that 1t may
ahiodht to even latsr sum than the direct loss
which have shown. Il may be argued that SOME
of the losses which I've presented, and the dan
gers that have depicts are already entaied upoa
us; while Vt is trJie thswe are already In a cond-
ton that we cannot avo sustaining soine loss, and
indeed now every day alizing the first fruits Of
the very policy that n now warning against
still the Bank of Tenness and the general finances
of the State are in coneion that they could soon
rally. and fast approach thtpece standard when we
have open ports ard uifket for our products.-
| Thus far should we 60 ando farther
In nothing that have Sd do wish TO be nm.
derstood as casting any reftfon on the solycncy
of the Bank of Tennessee. I present believe il
TO be sound and safe, but say that If the Bank
is forced TO farther issue OF 10 millions of dollars
circulation based alone upotfaith and credit as
proposed by this bill, do NJ believe II will eve,
resume specie payments, pnd u,n the heads of this
General Assembly viii rest downfall with aIl
the ruinous consequences attsing Il. This bill
pledges the faith and credit Of B. STATE for the re-
demption Of the issues of this ba, am opnosea
to placing the faith and credit ofhe Siate of'Teul
nessce in the hands Of any tels gentlemen titatl
may be appointed Directors of thes,uk, / care not
who they are or what may be ttr standInQAit
would bea dangerous preoedentlI will ask the
gentlemen who support this bill H. Asy ysoFlllk take
stock in Bank with the iidviddalisbility c,afsse
in its charter thereby pledging theiiaith and crr
dit to the management of Twelve dhctors, | do
not believe they would. Why then,s guardians
Of the interests OF the State act for it, YOU would
not for yoitfselVes2 The State has fur shed GER
tain fAed capital fof the Bank Whiq capital il
pledged for the redetnptioh Of this h,es Of the
Bank, as well rs other liabilities. I ahunwillinp
to 60 fatther and hope never to see thtaith and
credit of the State entrusted 70 any cbrpratlon-
The charter of this Bank will expire in asa ana
the passage of this bill will create the potiys ne
cessftt of renewing the charter. opposehis tyill
ION this ground. believe such renewal " nd Be
unwise and fraught with danger. 1t wouidnvolye
The fiectssiy Of raising, by taxation or otLrwise
one million Of dollars TO pay the bonds Of III Stete
for this amount, that were issued to raise art Of
this capital of the bank aud will fall due in, sss
oppose the renewal Of tliis charter, beevinetbat
it is bad policy for the State to engage in BANKING
and that sooner or later il will PROVE disastfoh
| | am sustained in this position by the bsior, Of
the old State Bank ci.sfterin 1890, as well as he
opinions Of nearly all The Governors Of the Sias
from the laniented Polk to tho present able and A.
gaeious Executive who argued this question viii
ability in his message TO previous General Assem-
IDLY. On this question of Increasing The capital Q
the Bank, not only has the liquidation Of the Ban
Ibeen recommended by the Governors of the Stat,
but by some Of the distinguished gentlemen VIII
have presided over il. ! was connected with thi
Bank for about six years. as President and Cashie
of one Of its chief branches was then convince
that tlieintefest OF the State would he pfopMted b
its liquidation and ! now express the hope that
may expire with It's charter oppose the BIN no,
under consideration for the reason that II pr0pos,
to increase the volume Of bank circulation two mi
hons Of dollars, thus competing with the Treasnr
Rotes rs a circulating niediuni when the interest
the Government demands tina, this bank circnlatio
should be retired, as Ear asptaeiicable aud the c