The Nashville daily union. [volume] (Nashville, Tenn.) 1862-1866, 1863-02-24

from other banks; and from loaning 20
their own officers. directors and stock
holders, upon terms more favorable than
those exacted from strangers.
Officers, directors aud stockholders are
forbidden from becoming indebted TO
their own banks beyond q certain pre-
scribcd amount, 10 defined proportion to
the stock owned by them; and they are
forbidden TO sell or transfer any stock
owned by them while directly or indi-
rectly indebted TO their bank.
Ranks are required periodically to
publish a statement of their condition,
made under oath "a keep publicly post
ed, fartae information Of all who may be
interested, list of the names and resi-
dences of their officers, directors and
stockholders, and Of the amount OF stock
owned by each; and periodical exam
ination into the condition Of their affairs
is to be made by persons appointed by
the Government,
Payments, transfers, assignments, mort
cages, deposits, or any acts prejudicial
10 creditors done in contemplation Of in
sOlvcncv, are declared void. Directors
are required to be sworn officers, and act
ing under oath
Ample provisions protect associations
in the exercise Of all customary powers
and privileges pertaining to legitimate
banking Their old and worn or mati-
lated notes are constantly renewed by
! Government without cost. Interest upon
bonds deposited by The banks as securi
ty for the circulation furnished, is 70 be
| paid TO them semi annually, in gold;
the known and willful violation Of any
provision by which the banks are to be
| governed is punished by forfeiture OF
| the charter, and ample penal provisions
protect them from injury by prescribing
| punishment for THEFT, CONTRIBUTING, for
gerry, and other wrongs committed against
them.
Such are the provisions Of this bill
| No one can fail TO perceive with what a
| jealous care the enlightened Trainer has
projected Gle rights Of the people who
are to use the notes, and of the capital
lists who will bank under Il.
| While il is a very popular error that
the chief business of banking consists
in issuing and circulating notes, this, il
reality, is so unimportant portion Of I
banking business that many banks issu,
no notes at all. AS general rule, tb'
heavier and more extensive business
bank transacts, the fewer notes il issues
and circulates; many banks whose CAPT
al Is counted by millions, do not coun
their issues Of notes even by thousands
While, therefore, every provision is mad
10 protect associations in the Legitimate
business of banking the people are ais,
equally protected from the risk and lOs
arising from vicious and irregular sys'
tenn of banking, entirely at war with Il ,
conservative caution of those capitalism
who have something TO lose as we'll as 4
gain, in their banking transactions.
This bill will deal death blow TO un
sound banking. a new era is about Il
be inaugurated. Confidence, that com
mercial plant Of such very slow growth
win now take root and become perma
nently established II is not anticipa
ting too much, to expect TO see the tim
when in London bank note from th
United States will bs as valuable as
note of England il here, and the curse 0
dollar bills will have been driven GU
by an abundance of specie, supplied by
proud array of specie-paying banks.