Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-09
HOW 10 GET A HOWE CURRENCY.

HOW 10 GET a HONE CURRENCY.
Tothe Union and American:
The many visionary plans to give
financial relief TO the State, thrust in
embryonic state upon US, show that
there really exists a strong feeling on
the subject IN the minds of legislators
as well as private citizens, but the
great difficulty seems TO be, Hour
The system of Treasury warrants
never will reach the end desired, and
viii only depress our State credit the
more. We had under Comptroller
Pennebaker about a million of war
rants out, and they were selling at so
to Csc, and this result will speedily be
attained If we again attempt that sys-
TEN. True, his warrants were not a
circulating medium, nor can such ever
be made to act as currency. 1t seems
useless to discuss the reasons. Any
man who thinks can readily see an ir-
redeemablu currency IS worthless. The
Treasury Il not a medium of exchange,
nor can it be. Your warrants Will
simply fall to the ground. Our great
need IS a State Bank, and how to get
it the main question.
My plan is to cali a Constitutional
Convention to meet in May next, in
structed to amend the Constitution so
as to permit the establishing Of a State
Bank, and at once let the convention
pass a resolution solemnly pledgingthe
honor of the State to the maintenance
Of It's faith with its creditors. Let the
- l. ,v.l,,-rI - Ill,
upon the adjournment Of the conven-
ton, to charter the bank anew, to issue
fi7e millions Of sterling bonds, guar
anteed by pledging the income Of the
bank and special tax to meet the in
terest Of said bank bonds. The inter-
est would be 100000 per annum, and
10 cents on the dollar would provide
for this and create a surplus to 60 to a
sinking fund. The bonds should then
be sent to Europe by a Commissioner
or a Board Of Commissioners, who
could, by properly representing the
resources of the State, the profits Of
banking where 10 per cent. can be had
for money, easily dispose of them at
80 cents gold IN London, Paris or
Frankfort. This realizes four and one
half millions gold or five millions cur
rency. With five millions United
States currency in its vaults, issue fif-
teen million State Bank notes, redeem
able on presentation, in legal tenders,
at the bank or branches, and receivable
for dues to and from the the State, and
You have the great end desired.
Now there are but two questions to
consider, viz: The United States tax
on circulation, and the ability TO sell
the:bOnds. Well, as to the first, it is
well known that this was a lVdr meas
urs, designed by Secretary Chase to en-
able him to float the great issue Of
bonds he was compelled to move to
carry on the war, and that the govern
ment was UsUrping rights and prerOg-
atives then that it would not IN times
Of peace. The compact between the
States comprising the Federal Union
was clearly that certain rights and pre-
negatives were surrendered to the gen.
eTal whole, but it was expressly stipu-
lated that such rights as were not
clearly surrendered should be forever
held and exercised by the separate
States. One OF these clearly was the
right to create banks of issue. This
no one who thinks can deny, for the
right has been claimed and exercised
till 1861 by the larger number Of the
States, if not by all. Can them en-
actment Of Congress override the