Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1871-02-17
NOW AND THEN.
Original sankiHg In Memphis.

When the Farmers and Merchants
Bank of Memphis went into operation,
its managers entertained views Of the
modes of bank management wholly diff
fersnt from those now practicsd. The
august old Institution did not rely solely
upon depOsIJOrs t0r It's basis of Corporations,
but there was originally a dollar in gold
or silver in its vaults for each note issued,
and such was the uuqUestiOned integrity
of Rawlings, Lawrence, Winchester, IL
tus, Mai Anderson and others who shaped
its fortunes that the whole surplus wealth
of the country was deposited in the vaults
Ofthe bank. They discounted paper in
those days, having many months to run,
and curious were the discussions of per-
sOnal worth and character That some
times occurred when the value Of paper
presented for discount was considered.
There WIS a hrm in Fayette county en-
gagged in the manufacture Of whisky.
They maintained good credit, and their
paper at i've months Endorsed by
two of the best houses in Mem
phis, was presented fer discount.
The bank had idle funds in abundance +;
the indOrsers knew 60; the drawers of the
bills were sound, and indCrsers A No. !.
The paper would be pronounced at this
day on Madison street gilt-edged. When
the president of the bank and cashier re-
cited the facts, amount and names all the
Board approved The proposed transaction,
when COlOnsi-traZsr Titus asked for the
bill. He scanned 60 closely and turning
to the President said he must object. The
drawers Of that bill are, no doubt, very
good; but on grounds of public policy We
must reject the paper. Those men make
whisky. They supply al Fayette county,
and, Mr.. President, it is so internally
mean that they have injured the con-
sumption of the article. Six of my Gus
have quit drinking entirely and
fatal injury liz done 70 the manufacturing
interests Of the country, to the corn trade,
and TO The growing commerce of Memphis.
1 move that the bill be turned down. And
turned down it was. The iudOrsers had
assured the drawer that the paper would
be discounted, and they went privately TO
the President aud giving their wi draft,
accommodated the whisky manufacturer
The moral of the story is that q dealer in
commodity in those daVS, TO have
must primarily be honest, and no
OF wealth or prosperity could, I
among honest men, secure credit.
ANOTHER ANCIENT FINANCIAL OPERA
TON.
It was customary in those DAYS, when
transmitting money by mail, in order 60
guard against loss, to cut a bill
n two and SEM the halves on
iifferent days. An old gentleman
who still lives hOnOr8d and beloved for
lis many good qualities of head and
heart, saw when another bank, the Plant
,rs', went into operation, how he could
'aise the wind. He had one hundred dol
ars, but he wanted two hundred. Hecut
he bill in halves, and going TO Cashier
IO1and, of the Farmers and Merchants
Bank, said, " Here is the half of one of
your bills; Pm in a hurry; let me have
he amount, and III give you the other
laIf in a few days" The half bill was
and a hundred dollar note given to
'ur friend, who went to Major Penn, Of
he Planters Bank, with the same story,
.~urrendered the other half bill and peck
ted another 500. Nothing was said Of
he matter for several weeks. One day
he two cashiers were talking over mat
ers, When the huanCier passed. LOfland
usually remarked, / must see him. He
borrowed 500 on a half bill some time
and must settl8. He has forgotten
T." by the way" said Penn, he Dor
owed the same sum at the same time in
he same way from me-" The two half
ills were compared, and fitted one a
Their exactly. Tha Joke was compre-
ended, and both cashiers saw how they
ad been Outwittsd. The borrower was
for, paid the bankers, aud told them
q had only awaited the event that they
be taught a lesson in laundering.
fe made them uucOrk champagne, and
here was an end Of disCOunting those
pastOfice orders.