Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-07-23
SHALL THE STATE BANK BE RE
VITEDP

The plan of Col. Burch looks very
well ON PaPvr, but wo Doubt If tho re
atty will be all he paints it. There are
many reasons now initiating against
the success of such an institution,
which did not exist previous to the
war. We had no national currency
then, good throughout the Union. The
issues of such bank, if made redeem
able on demand with legal tenders,
could not be kept at par with them.
One can easily imagine the lncon-
venience which the circulation of such
notes would cause. They would be
good only in the payment of local
debts, and not then if legal tenders
were demanded. If a Tennesseean
should carry his State notes beyond
her borders he would be under the ne
cessity of discounting to pay his hotel
bill, railroad fare, etc. The profits of
such bank are probably larger in Col.
Burch's eye than they will ever be on
its balance sheets. The circulation of
such currency here will have the dis
advantage of driving a better currency
away.-ChattaHooga Commercial.
As the State Comptroller has an
nOunced his intention to recommend
the establishment of a State Bank by
the next Legislature, it is well that
the disadvantages of such an institu-
ton be discussed as well as its merits.
The Comptroller suggests the 'same
general principles" as ruled the old
bank One Of those principles was re-
demption in coin, which would place
its notes above greenbacks, and would
be eminently desirable in.every respect
if greenbacks were not legal tender
for State taxes. Under the circum-
stances, however, redemption in legal
tenders would be the wise course for
the while, and thus the bank could re-
deem in gold whenever the United
States resumed specie payments.
To say that redemption in legal ten
ders would depreciate the notes so re-
deemed below legal tender, is a palpa-
BILE absurdity. 1t becomes more so if
the notes are also receivable for taxes,
which the present national curren y is
not, although so received generally IN
virtue of it's convertibility into green
backs.
So of the supposed necessity for dis
counting when a Tennesseean carries
his State notes beyond its borders.
Why discount? The note is redeema-
bic in greenbacks at its own counter,
lust like a national bank note. The
cost of transportation home for re-
demption would be the same in the one
case as the other. The bank could as
well afford to pay the cost of transpor-
tation as the national banks do under
the existing law.
With all respect to our enterprising
Chattanooga contemporary, its objec-
tons have not feathers weight CON-
pared with the great needs of the peO-
pie of Tennessee and the advantages
likely to accrue from State Bank.
The KnOrriIIe Chronicle says of the
suggested revival of the old State
Bank:
Col. Burch's plan might work well.
and it might prove a relief to the over
burdened taxpayers of the State, but
until the people are assured that there
is no longer a ring at the State Capt.
tai, specializing in State bonds and
buying fat offices for their friends, they
will be little chary about issuing more
bonds. Another thing that makes the
issuing of vemillions in bonds, it would
be nice thing for the Comptroller,w who
would get a handsome sum for affixing
his signature to them.
If the plan will work well, and prove
"a relief to the overburdened tax-pay-
ers of the State" it should be set on