Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-19
ON TAKING MONEY CAPITAL
STATE, COUNTY AND MUNICIPAL


To the Union and American
As / did lot say all / desired on this sub
| ject In my first communication, continue
it at the solicitation ofseyeral.
Before the war we were certainly very
prosperous and happy people-none more
so on the face of the earth. We had in the
State-using approximate round numbers
eight millions of banking capital against
three now. We had bank note, and gold
! and silver circulation among Us of say eight
and half millions, against q greenback
and shinplaster circulation now, of not ex-
ceedingly five or six miIliong. Our banks
were abundsntly stocked with specie, so
much SO that large deposits oft were some
times received reluctantly.
When crops were abundant, and prices
remunerative, they expanded their crcula-
ton to meet increased demands for money,
and all went happily on. Confidence ran
high between them and the people, and
discounts were freely paid on good notes, st
long dates at seven Per cent. interest; while
products were moved on bills of exchange
at all dates up TO six months, which were
freely discounted at all times.
These things existed under our old State
bank system, but the banks of that day have
all been taxed out of existence long ago by
the general government, and now we have
new order Of things. The banks OF to-
day discount notes having usually not long
er than sixty days to run, charging ten per
cent. interest, while the products OF the
country are moved, as general thing, on
sight bills Of exchange-the peculiarities
Of the National Banking law, under which
they are organized, and the excessive de-
mands upon them, necessitating this state
of things.
If we required eight millions Of banking
capital then, we certainly require as much
now; and if we wanted eight aud a half
millions of specie and bank notes to answer
our purposes then, we surely want all of
that sum now. Our present banking sys-
tenn is rigid, while that was flexible and
readily adjusted itself to circumstances as
they were presented. It was far better
adapted to our wants than the system now
fastened upon US.
AS fast as our people realize surplus,
and as fast as clerks Of courts, guardians,
executors and administrators of estates
make collections, straight way the money
goes into five twentys, or other bonds,
some of which bear eight per cent.
gold interest and are either guaranteed
by States or are secured all over with
mortgages. These are bought at less than
par as general thing. Neither the State or
any one else In 1t, except the investor hia-
self, is benefited by The operation. Tho
money invested In it goes out of the State
and is sunk out Of sight to US, and why?
Simply because 1t Is SO taxed at home that
he can employ it more profitably abroad.
In this way the quantity of money is GET
ting less and less with us each year, and
the value of lands all over the State shrink
ing as consequence. Labor also feels it
in reduced rewards, and soon, without a
change, tide of emigration. and heavy
one, too, will set in from our State. In such
an emergency it is the high duty of those
In power to provide remedy, and that
remedy, it seems to me, lies In the freeing of
money capital from taxation. All political
economists agree that money is not legiti-
mate thing to be tsXed-certainly not in an
emergency like this. There are many 9TH
or ways of raising revenues without doing
it, and the pittance the State, or any coun-
ty or corporation in it, derives from such
source is certainly at the cost, on the other
hand, of q far greater depression in the
value of lands, labor and the material in
terests of every one all over the State. Our
intelligent and far-seeing Legislature will
certainly look at this thing in its true light,
and it is hoped will not only strike this tax
from the revenue list, but will pass a Law
that will, if possible, prevent both the coun-
ties and municipal corporations from levy
ing such tax. Do this, and money will
show itself in abundance, values will rise,
all interests viii prosper, and every man ap-
plaud the act. n. E. A.