Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-21
SUGGESTED REVIVAL OF THE OLD
NrATE BANK.

Comptroller winch VIII elicit universal
attention and thoughtful discussion.
In view of the heavy burdens imposed
by Radical legislation ON the State and
nation-with the unsatisfactory condi-
ton of the currency, caused by the
centralized national bank system that
keeps West and South in vassalage to
the East-Comptrolier Burch an
nounces his intention to recommend
before the next Legislature the re-es-
adjustment of the old State Bank of
Tennessee. The profits of this bank
before the war contributed so much to
the revenue of the State that the people
never felt the light taxes required
of them. IL ever taxpayers needed
such aid, it is now. The record
is open TO all Every merchant and
every farmer knows the old bank was
most liberal in Its rates and accommo-
dations to the people. Besides direct
benefits in this way, which all portions
of the State enjoyed by means of the
branches, its indirect benefits, in keep
ing down the rates and charges of
other banks, are incalculable. We
need bat call attention. to the fact that,
since it retired from the field, the rate
of interest has run up to ten, twelve
and twenty -four per cent; and even ON
these terms, money is hard TO obtain
on double the securities that used to be
sufficient.
That the national bank system is not
equal to the needs of the country, nor
adapted to the varying needs of vari-
Gus sections, has been amply demon
strated by bitter experience. That Con-
gress lacks the ability or the will to
give us an adequte system which will
work impartially, is also abundantly
proven. The panic of 1887 suggested
the old State Bank of Tennessee. The
panic of 1857 tested its strength under
the double pressure of financial string
ency and political opposition. The
panic of 1873, with its train Of depres-
sion still bearing heavy on the people,
suggests its resurrection. As source
of State revenue, a means Of relieving
our local money markets, and of help
ing to develop our great natural re-
sources and tagging industries, it is
needed. Its usefulness before the war,
would be doubled or trebled now, IN
the absence of such powerful rivals as
the Planters and Union Banks.
For years we have waited on foreign
capital to come in and help US. We
have bid the highest rates to induce it
to come, but it comes not. We must
even put our own shoulder to the wheel.
We have the ample basis for creating
our own capital. If we have not con-
fidence in ourselves, how can we longer
appeal to the confidence of others?
Shall we stand idle for another decade,
vainly begging outside capital to come
and fleece US, instead of building up
home institutions identified with our
There is but one apparent obstacle 10
the revival of our old State Bank 1t
is a section of a Federal revenue law
which enacts that every national
banking association, State Bank, o.
State banking association shall pay
tax Of ten per centum on the amount Of
notes of any State bank or State bank
ing association, paid out by them
This enactment is a mere nullity. 1t
has never been tested IN the courts,
and could not stand a moment. 1t &C.
ours in an act ito provide internal rev.
enue to support the government and
TO pay interest on the public debt"
As a matter of fact no revenue is re-
ceived from this source. 1t is not a
productive tax, but prohibitory one
In the prolonged contest over the old
United States Bank, the Supreme
Court decided that the United States
Government has no constitutional
power to organize a bank except as a
fiscal agent. The right to organize or
regulate banks as means of govern
ment revenue was clearly denied 4
fortjori, the Government cannot,
under the plea of revenue, drive
banks out Of existence The |
DID United States Bank was a pigmy |
beside the giant monopoly Of to-day, |
but the nature Of TIE coming contest |
will in many respects be like that of |
half a century ago. All readers of |
their country's history know that An
drew jackson could never have stifed |
The young monster of centralism in his
1; y without the aid of the State banks.
In his famous veto message occurs this
passage:
Upon the formation of the cOnstitu-
ion, the States guarded their taxing
power with peculiar jealousy. They
1t only as regards imports
md exports. In relation to every other
,bject within their jurisdiction, wheth-
r persons, property, business, or pro-
essiOns, 1t was secured in as ample a
manner as it was before possessed"
This remains as true to-day as on the
9th of July, 1882. Banks, being
neither imports nor exports, the States
light over them, as sources of revenue,
S unqucstionable. There is no line or
yord in the Federal Constitution au-
horizing the Government 10 deprive
he States Of this source of revenue.
We have the same constitution as our
athers. and we feel sure such power
annot 10y any perversion be construed
rom the three negro amendments.
Tennessee is the battle-ground of
1eas now. as in the past. The power