Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-06

Gould has secured a controlling inter
est in the Pacific Mail, and that new
set Of Directors viii be elected at once
to carry out his policy, which he frank
ly declares TO be an understanding"
with competing corporations and an
advance in freights. Hence that furry
in Wall street and the advance in
Pacific Mail and Union Pacific stocks.
THEPENDING FIsANCIAL SCHEMES
an the various plans pending before
the Legislature for financial relief
through an issue Of tax certificates,
treasury warrants, etc, propose that
Only one half or three-ffJbs or three
fourths Of the taxes shall be paid IN
this currency, greenbacks being de-
manded for the residue. To our seem
ing, such a pro non Is tantamount to
confsesing in advance that the treas
ury notes would not remain at par
with greenbacks, nor be interchange
able with them. Il such is not the an.
tieipation, why not allow the people to
pay al their taxes In the proposed me-
dunn? We are satisfied that an issue
Of deprecated paper would work evils
counterbalancing all the benefits Of
increased volume, making our debt
larger IN the end and postponing pay
day, while It's temporary advantages
would be problematieaL If we thus
recognize In advance a distinction be-
tween the national and the State cur
rency, we admit that the latter will de-
preciate. Once begun, where will the
process Of depreciation stop: Once
begun VII not these new issues Of the
State become the shuttlecock Of broE-
efs, spectators and rings, just ike
the bonds already issued on the same
basis Of credit? VIII not this very
provision about tax-Payments, tend to
hasten such an untoward result: How
can the State appeal to the people to
sustain this new currency, If the State
itself diseredits it by refusing to accept
1t in full payment Of all dues? Sup
pose the issue be S5,O000OO: the great
er bulk Of this amount would Lot be
redeemable for taxes II any one year,
and as availability for tax-payments
would be It's only tangible basis, It
would be necessarily subject to all the
vicissitudes Of inconvertble paper.
The establishment Of a State bank
on a greenback basis, issuing a circu-
lation convertible into greenbacks over
its counter at the will of the holder,
would obviate all these contingencies.
Thus convertible, all the State taxes
could be paid in our home currency,
and there would be No danger Of de-
probation. Under the rules f safe
and approved banking, it would be as
simple a matter to keep such bank
notes at par with greenbacks, as 1t was
before the war to keep them at par
gold. Nor would resumption Of specie
payments by the General Government
embarrass the proposed institution.
Such a process must be gradual, and,
on a greeuback basis, the State
bank could bring up its notes to gold
as easily and as rapidly as the national
banks.
Besides, some such machinery Is
needed to put the State currency
into circulation among the
classes who want 1.-THE merchant, the
mechanic, the farmer. The paying out
Of treasury warrants for State expenses
would be but d tedious and unsatisfac-
tory process. To issue such warrants
in payment of interest or bonds would
BE- impTacticabIe, unless the holders of
or bonds should assent; we
could not compel them to surrender
their claims. Most OF our indebted
ness is held IN other States by
men who would not be likely to
accept such warrants at par, because
their faith In the States credit has
been already shocked; and they have
little or no business relations with our
people through which to dispose Of
th IN. But a State Bank would issue
it's notes directly to our own people
who need the currency, and whose
every interest would be 20 sustain 1t at
pr It's convertibility into greenbacks /
would soon win the confidence Of all,
and Tennesseeans would again hold
State bank notes in the same high es-
TEEN as they did those Of the ante
belum period.
A third advantage to be gained by
the intervention Of q bank, is that the
amount Of new currency would be de
termIned by the actual demands Of our
people for It, as developed IN the nor
NAL course Of business. while its re-
turn or uon-re.urn for redemption
would gauge their capacity and dispO-
sition to float 1t. In other words, the
rules and checks Of experienced bank
ing would be brought to solve the very
nice problem Of how much additional
currency We reed and how much |
we VIII absorb. The guesses !
on this subject made in divers plans |
before the Legislature, vary from
three millions to ten Millions rather
broad and unsafe margin.
Gov. JAMES ID. PORTER says there 1
- - I,v-, s.. 4ITg r~0-TaT 1TrGTIn he ]