Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-08-21
NASHVILLE TENN. SATURDAY, AUGUST 81. 1876.
FROM The HIGHLANDS.
The U. and A.-Banks a Necessity
National Banks.

CRossVn-LE, Aug. 17.-Living upon th,
highlands Of Cumberland mountain in
Tennessee, l should feel much out of The
world if should be deprived Of your pub
lcatiOn. Your weekly has reached me as
regularly as the sun has peered over the
summit Of this lofty em;nence. Com
meneing with the Dispatch in 1865, have
read the paper since, and in candOr l car
say that 1t gives more intelligence in poll
tics, literature, agriculture, and general
news for the price, than any paper pub
llshed IN the West. Here in the invigO
rating atmosphere Of the higher walks O
life, cannot only learn what is new il
Tennessee, but sometimes in a day or two
what is transpiring in London, Paris and
other great hives Of humanity in all parts
Of the world. The agricultural department
should especially commend the paper 10 the
farmers of the State. In a single number
sometimes the information is worth fal
more than whole years subscription.
am surprised your plan TO benefit the farm
ers has not been adopted 10 benefit the pro
ducing class by more papers.
LET Us UNITE.
But want to say few words in rela-
tion 70 the great struggle in which we are
now engaged 10 wrench the scepter from
the grasp Of the dominant party, who for
many years has ruled with tyrannic sway
over the liberty and prosperity of the sunny
South. think the great conservative par
ty should hail as brother any one willing,
by his vote, to arsist in this desirable OBJ
ject. We should make a "lOng pull, a
strong pull, and a pull altogether" for the
success Of this patriotic measure.
1t would not be wise to repel or discourage
any one or rule him out of our ranks, be-
cause he happens to own stock in bank,
railroad, mandatory or any other lawful
business. 1t seems there is a growing de-
sire to divide on the subject Of banking as
the banks are now organized. IL will not
be disputed that in a commercial country
so extensive as ours, banks OfsOme sort are
indispensable. The only question, what
kind? If banks were not necessary they
could not exist any more that doctors or
mills where there was no business for
them. What would be the condition of
the country without banks? Who would
make the exchanges from Maine ID Cali
fOrnia with gold and silver? How
many wagons would be emPlDyed in the
business and guards to protect the money
in transit9 The anti-bankers will say
brokers can do this, or private bankers.
Can individuals do anything as cheaply as
Can wagOners or individuals
transport your merchandise from New
York to Nashville as low as railroad or ca
nal companies? Those who have become
acquainted with the history Of our country
know that private banking has been tried
from one extreme end Of the land TO the
other. What was the rate Of exchange
then? Sometimes it reached fabulous
rates. What is the rate nOw9 Bat little
more than the expense Of writing the drafts
This low rate Of exchange is not merely a
saving to the trader, but it reaches the
home Of every family who uses a pound Of
coffee or wears 3 yard of calico, for the
merchant can sell so much cheaper where
his financial risks are so small. But how
much is to be charged to the account Of
lrOtit and loss, by the public, under the old
banking system where no security was
pledged for the final payment Of the circu-
alton?
The great objection seems to be 10 what is
allied the national bank system; but / &C
that I am unable to see any
material difference to the public between
be present and former mode Of banking,
.xcept the present bankers have to give the
latiOn undOubted security for the final
,ayment. This security makes the bank
notes equal from one end Of the country to
he other. When a note is now received l
10 inquiry is made whether it was issued
IN the frozen banks Of the Saint Lawrence
" in tie balmy climate Of Florida. But |
t is claimed that the present system is |
)lighting the prosperity and endangering |
he liberty of the nation. Now let us /
Inalyze the system and see how this great |
is enfOlding in its coils and |
rushing the prosperity of the c)un- |
~ to pile up untold millions of /
he peoples wealth. IL is claimed that |
heir advantages enable the bankers to |
make enormous profits. Let us see how /
heSe profits are made. All admit that the /
,anks have to pay the nation or somebody
Who did pay the nation fOv the bonds TO |
ecure their circulating notes. For these |
,Onds premium Of at least ten per cent. |
las to be paid, and then ten per cent. more
las to be pledged than the circulation OBJ !
aimed. Here is twenty per cent. over the |
irCulatiOn received. These bonds bear |
lot over hve or six per cent. interest, |
whereas the money given for these bonds |
Ould be loaned in Tennessee for ten per |
ent. Here is twelve per cent. loss for five |
n six per cent. gained. Now if any one /
an see where the profits come in 70 the 1
'ankers in this part Of the business 1 ad- |
nit his vision is clearer than mine. But il |
S said for this pledge they get ninety dol |
3rs on the hundred which can be loaned /
u inteaeSt. Now this is simply a mistake; |
t is only paper received and if put in cir |
ulatiOn, must be paid as certain as they |
aid for the bonds pledged, and the bank !
rs have to provide further capital to paw
his paper when demanded. These facts
aken together must convince any intelli- |
,ent mind that money put into bank stock !
5 not more profitable than investments in |
)ther business.
The great Conservative party IS strong |
enough to carry the elections without max |
nc war upon any lawful business of the |
Where bank is fairly conducted |
md the public have confidence in the honor |
md integrity Of the proprietOrs, the bank |
'ecOmes a safe place of deposit, and the /
public find it convenient TO place money |
here for safe keeping when not in use.
These deposits amount to a large sum in /
owns of considerable business, and people |
rom the country also place their money
here for security. This, in a great meas
Ire, prevents robbery and murder for the /
money of dWellers in the country. The |
Teat source Of profits to the banks is the /
deposits, not the privileges Of the govern
nent. These deposits in October last |
mounted to about eight hundred millions.
The prudent lOaning of them is a great ad-
antage to the people as well as profit to
be banks. Many millions are thus put L
float to assist the business of the country, |
which otherwise would be uselessly hoard
d and idle. AGMCOLA.
ABOUT SNAKES.