Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-02

rants, we might venture their issue.
But the free and easy notions about
State credit INDUCED in lately by SO
many, tend to destroy the very founda-
ton Of confidence on which such an
issue would necessarily be based.
As the safest means for regulating
any issue of home currency, and put
ting it into circulation among mer-
chants, mechanics, farmers, and the
people at large, and at the same time
sustaining its value, by making it the
interest Of all classes to cooperate In
so doing, we think resort must be had
to the appliances Of approved and safe
banking. The establishment of a State
Bank, such as We enjoyed before the
war, would accomplish the two objects
sought by the Legislature, as well as a
third one of equal Importance.
First. The profits Of banking, which
now go to national monopolists, would
be largely diverted into the State
Treasury, relieving the people of that
much taxation. The old Bank Of Ten
nessee met all the interest payments
before the war out Of its earnings, aud
the people never felt the burden.
Secondly, it would give US a home
currency, the volume regulated by the
actual demand as it may develop, in
stead of by the mere guess-work of a
Legislative body for two years in ad-
vance.
Thirdly, a very proper provision
limiting such bank to six per cent. on
its accommodations to the public, would
prove a most effective mode for return
ing to the old rate Of interest than any
arbitrary enactment. The agency of
the old bank in keeping down the rates
Of interest and discount, was a feature
Of its usefulness that can be better APP
preciated now than ut the time of its
operation. We hardly noticed then
howit restrained other banks and bank
ers, who have since run up rates to ten
twelve, and twenty-four per cent.
a State bank, be it remembered, is
not a novel or empire experiment. The
panic Of 1887 led to the establishment
Of the cid bank. The panic of 1857
tested its strength under the double
pressure Of financial stringency and
political opposition. The panic Of 1873,
with its train Of depression, suggests
its re-establishment. Every merchant
and every farmer knows the old bank
was most liberal in its rates and &C
eommodations, while, through its
branches, the entire State was bene-
fted by its keeping down the charges
Of other banks. What has been done
can be done again, with even more
safety, if we profit by the lessons of
the past. To show what has been done
through such an agency, we quote from
the official report Of Hon. Cave John
son, then President of the Bank, under
date of Feb. ., 1858:
"From the 1st Of July, 1853, to the 1st of
January, 1855, the profits of the bank
amounted to S1,3S4,OI2.45, making over
four and One-quarier million OF dollars
made by tue bank for the use of the State
beyond its expenses. The bank has in
sfTUcted Its correspondent in New York to
pay the interest On any bonds Of the State
as presented, and keeps funds on hand for
that purpose, and pays the check Of the
Treasurer without regard to the amount Of
his deposits, leaving the Treasury often in
arrears with the bank, as it is on this day
to the amount Of $4,000
'.In addition 10 the aid thus afforded the
Treasury, il may not be amiss 20 state that
important facilities have been afforded TO
the community By furnishing over fourteen
millions Of exchange from the lst Of July.
1850, 10 the 1st OF July, 1851, and that
since the suspension Of specie payments
more than a million Of dollars Of exchange
has been furnished the citizens at one per
cent. premium, whilst exchange was sell |
ing at from five to ten per cent. The Pres
ident aud Directors did not think it Just or
proper to take advantage Of the suspension |
to crtOrt extraordinary prices from the
people.
sThe examination Of the profits Of the
bank for the last four years viii form a
more reliable test as TO the future opera
tiOns Of the bank than at any former pc
riOd. This examination. when taken in |
connection with the repor. Of the Comp |
trOller for the same time, induced the Pres
ident and Directors TO express the opinion |
10 the General Assembly in October last: |
whilst such a number Of banks exist and |
such heavy liabilities Of the State are TO be |
met, and such arrangement Of the cur |
rency, the aid Of some banking Institution /
to sustain the credit Of the State seems al |
most Indispensable. 1t would |
not seem safe to dispose Of the Bank Of |
Tennessee and leave the people exposed to |
the cOntTaCtiOnS and expansions in the cur /
renCy by the stockholders of other banks. |
''Ihe undersigned still entertain the |
opinion expressed by the President and Di- |
rect0rs in October last, nor can he see how |
the constantly increasing liabilities Of the 4
State can be hereafter met without the aid |
Of some such institution possessing equal /
means and credit. The profits of the last /
two and half years show that the bank |
may be safely relied on to make between |
three and four hundred thousand dollars |
annually. Without such aid the credit Of |
the State could not be safe without en-
larging the subjects of taxation as well as
increasing the amount, or by a sacrifice /
of the value of stock now owned by the |
bank. 1t is not deemed out Of place |
here to state that, in the opinion of the I'M
designed, double The capital now in the /
bank and branches might be uSefully en-
ployed by each Of them, with little or no |
additional expense TO the State, and would /
not only greatly add TO the profit Of the
bank. but secure TO the people Of the State
an enlarged circulation in a currency upon
which they could confidently rely, and be
the means Of enabling The bank to afford
additional relief to tie people during the
pressure IL the money market. Such a
manifestation Of confidence in the bank,
after thorough examination into its con-