Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-16
London adyices on the l5tb ipst ouotl

y 9-4E "a series, eOupOns.-.-.............. I05L
3 s 81 series. eoupons---.---..-..-... l055s6l06
~ s.- -.-......-..... oo5zd 49,
= . ouS''-.'''- 1857
London advices on the 18th inst. quote
United States 5-2Os at II.
T Sterling exchange was quoted in New
1 York yesterday at l09s@1lOl.
! Very little business, of any sort was
: transacted yesterday, and we hear of no
change in uucurrent money. Bank of
Tennessee was bought in small lots az Soc
and is held generally at Sc. Planters
Bank is worth S5e buying and Soc selling.
Uaion Bank is quite firm at soc buying, and
sSe selling. ta4gts
T. Southern bank notes are unchanged.
Nashville corporation checks are taken
at lie discount.
Tennessee bonds were quoted in New
n J ork on the l2th inst. as follows: $1,000
4 exfOohponsat roc; $4,000 new at zoe and
$4,000 at 69te
/ Judge Smith, of the Common Law Court
of Memphis has decided that the old
issues Of the Bank of Tennessee are a
| legal tender in payment of taxes and other
| dues to the State, and that the Legislature
has no power to repeal that section of the
charter which makes its notes such legal
1 tender. After recapitulating the points of
The charter bearing upon the issue and the
section Of the act of 1865, repeating the
twelfth section of the charter, which
enacted; "That the bills or notes of said
corporation, originally made payable, or
which shall have become payable on de-
mand, in gold or silver coin, shall be re-
eeivable.at the Treasury of the State, and |
by all tax-eollectOrs and other public Off
GERS in payment for taxes and other MONEYS
due to the State" Judge Smith says the
Legislature of 1866 was prohibited from
repeating this section, because the consti-
tuition of this State, as we'll as that of the
United States, provides that no law, i'm
pairing the obligation of contracts shall
be enacted, and he contends that there was
a contract between the State of Tennessee
and, the holders Of the bflIs of the bank
put in circulation under the provisions of
its charter Here are his reasons for ar
riEing at this conclusion:
ct will be seen by the provisions of the char
ter, that the entire capital of the bank belonged
either directly or indirectly. to the State. Its
capital. assets and proPertiesw were under the ex-
elusive control and management of the State 1
All It's principal officers and agents conducting
It's business operations, were but the creatures
and apprentices OF the State, amenahle alone to !
the State. for any improper discharge Of their !
official duties. Indeed the bank was TO be the 1
property of and established for the benefit Of the
State. And, that 1t might the more effectuaily
merit the confidence Of the public and the hold |
ers OF its notes. and as an earnest of its ability
70 sustain perpetually its circulation on specie
basis the faith and credit of the State is solemn
~ pledged for its support, and for the discharge
of Its obligations: and lest this be not enough
me 9addItionai stipulation and guaranty was di
eeive the issues of the bank in payment of an |
taxes and other dues of the State.
. 1t is, indeed, difficult to conceive how the OBJ
legation of q contract could be imposed in strOn-
ger language, or in more comprehensive terms, l.
than those employed in this charter. How is IL / ,
possible 70 escape the legal conclusion that eve
~ bona bon hde holder Of The bulls Of the bank, re-
assurance of the shield and protection of these
guarantees of the State, thus solennly and de-
4
"The guarantee contained in the 18th section of
the charter, Is Internationally substantive and
substantial part Of the contract between the | I
state and the holders of the bills of the bank as
much So indeed, rs if engraved upon the faee Of {
every bill, and upon which the holder has clear
~ the right to insist and rely as one of the means
OF INDEMNITY leiIy ohered him under said charter.
and which, indeed, may be now about the only
n y cans OF present or immediate indemnity ieft .
1T cannot be other than deliberate contract 4
on the paTt of the StQfa with har
ING the same, and as such, the highest and most Y
sacred consideration of national homer. integri- :
" and faith, thus solemnly plighted imperative
" demand Its scrupulous observance" II
Judge Smith holds that the repeating
section of the act of 1866 is directly in :
violation of the constitutional prohibition I
against legislation impairing the obligation Il
Of contracts, and to that extent he feels
constrained 10 pronounce the enactment b
and void. This Is Avery :,
important decision, for Judge Smith de- o.
,lsres that all bona 6de holders of the gen b
liAe issueslof the Bank of Tennessee are "a "a
Untitled, as matter of right, arising out of
contract, to pay them into the treasury in
discharge Of taxes and other dues to the n
'tste, This decision ought to enhance the I,
alue of the old issues Of the Bank of ca
tennessee to very near par '.'i #st1
The reports from Washington state that j.
there is decided opposition on the part Of ca
congress to the adoption of any measure =
boxing to undSe haste in the payment of
he public debt, or the resumption Of speeis m
aSments." And this feeling is undoubt- 81
dly faithful reflex of the prevailing 81
antiment of the masses of the merchants
nd manufacturers Of the North and the at
peculators in Wall street. The authority l6j
iven to Che Secretary of the Treasury by Il,
ohgress at it, last session, to retire from Of
regulation four millions Of greenbacks per iae
lohth, has never received the approval Of BBnp
lese classes. And it must be confessed slc
lat it is beyond the power of the people 10,
comprehend how the country is bene- y
ted by retiring greenbacks which draw no ms
lterest, and replacing them with bonds
hich draw gold interest, or even with Va
ank notes based on bonds It is certainly tie
cry desirable that the volume of the cur T,
'ney should be reduced, but it IS a qaes- So
on whether, so far as the government is S SS
,ncerned it would not be better to invest so
e surplus funds of the treasury in inter- wi
t drawing bonds than in greenbacks.. A "C
20 bond for 81 900 can be purchased foE Las
,OlIt $40 i'm gold. 1t draws thirty dollars Lee
gold every six months, which is the 81 I
me as SCI so per annum in coin, on the peg
md, and amounts to eight per cent. on har
e gold value of the bond, or eight and -
III per cent in currency on the face Of
e bond. If theSecretary Of the Treasury =
d been authorized to sell the gold ac- IN,
in the. treasury and invest the Of
oeeeds either in 5-20s or 1905, his De- the
nlber balance sheet would have shown a tas
rye decrease Of the interest bearing debt NV
the bon1u Of oraJ;to,,. onJ ,vb,Io AZ L y.