Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-09-12
A STATE BANK.
Suggestions for the Financial Relic
Of Our People.

OF Our People.
To the Union and American:
MANCHESTER, Tenn, sept. 10, 1ST4.-
In nv recent communication, | advOcat
ed the establishment Of State bank on a
plan similar to the one suggested by Col.
Burch. At that time my mind was not
directed TO the manner Of its establishment
so closely as it was to the benefits to accrue
from it. Since then, having pOndered the
matter, have directed my attention parti-
cularly TO the best plan for starting such q
bank, and the hest mani er of afioTding it
capital for sound financial basis. After
much reflection, propose the following
plan rs least Objectionable and more to the
purpose than any tier.
Let such bank be established by giving
it, as capital, regular treasury notes, issued
by the State of Tennessee, in the same
manner that the United States issues the
greenbacks. Let that capital amount to
fifteen millions. i'm denominations from one
to five hundred dollars. There IS no rea-
son why these treasury notes should not be
rated as near par, compared with gold, as
greenDackS, since fifteen millions of Ten
nessee money would be as amply secured
BY the State as the hundreds Of millions Of
greenbackS are by the United States.
Having thus established the Bank, We
open up an immense prospect Of property
to the manufacturer, the farmer, the me
chanic and the merchant. Loan this
State issue to them on good personal secu-
rity, or mort gage, ON long time, and at a
low rate Of interest, (six per cent. at mcSt)
thereby enabling all projectors Of meritOri-
ous enterprises TO procure the requisite cap
itel 10 commence operations.
The profits accruing from exchange and
other legitimate business operations Ofthe
Bank, and from interest ON loans, would,
in the aggregate, yield TO the Bank no less
than t,cO millions of dollars per annum.
The actual value of property IN our State
would be immensely enhanced, and as eve
ty Individual in the State would be directly
interested and benefited, our affairs would
present an uneXampled spectacle Of pros
perity.
Some will doubtless object to the plan
and give as a reason for their objection
that these issues would not circulate and
would be of no value, outside Of the State.
| Not admitting rs a fact, but Tor the sake Ol
argument, suppose this State money were
| confined to the State. Instead Of militia
ting against us, it would b. the more
/
the war, our crying want has been a cir
culating medium that eau be kept in our
midst. We feel and see clearly that we
| cannot keep greenbacks amongst us. New
England and New York city manage, in
spite of us, to gObble them all up. As a
| consequence of such constant drains upon 10,
there is a periodical tightness in our money
matters, and when we absolutely need
money we have to pay enormous rates OF
| interest. Therefore, circulating medium
| limited to the confines Of our Stale would
| be-"a cOnsUmmatiOn deyOutly to be
/ wished"
The bank will, in its various transac-
| tions. gather up enough greenbacks TO fur
nish exchange for our merchants and 10
buv in our outstanding bonds at, say fifty
or sixty cents in the dollar, and thus pay OF
| and retire our entire bonded debt.
| | could dilate in the advantages OF this
kind of a circulating medium to the entire
pOpulatiOn of our State until the columns
of your valuable paper would be filled tC
the exclusion Of Beecher-TiltOn and every
other item of news, but | fOrbear. / simply
| throw out the suggestions in tine rough, tC
be considered BY our next Legislature, will
the further remprk, that relief in the shap'
\ of circulating medium We are bound q
have, or our State will be bankrupt. Farm
| ers need money to raise their crops as badly
as the merchOnts need it to purchase thet
stocks; so, ifrplief is not Afforded and fallnF:
comes, all must fall together.
WM. 5. HUGeINs..