Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-06-27

o IN
taught by experience: and OF every advance in sci
ence utterly regardless Far more estimable IN
mankind are those qualities which lead men con-
yersant In government aud legislation both to the
ready abandonment OF error ana Its undisguised
avowal.
The last two Democratic State conventions
wisely declared that the State tax on property
should not exceed forty cents on the one hum
dred dollars ad valorem. | maintain that, as
the reduction of the State tax to ten cents on
the one hundred dollars has brought us no
relief. we are just as unable TO pay more
than forty cents now as we were when that
amount was fixed as the maximum. In my
opinion the State debt cannot be cumpro-
missed removed from politics and paid without
ever returning to a tax of forty cents, pro-
vided the proper steps are immediately taken.
| certainly should not ask for tax higher
than would be necessary to pay the interest
on the debt If settled at thlrty-three and a
third cents on the dollar, and that is the low
est rate asked by the lowest tax advocates.
In two years it would not be necessary, in
my opinion, to have as high tax as that
levied.
ONLY ONE SOLUTION.
How then, you ask, will settle the debt
in manner satisfactory to the creditors and
| the people? | answer that there is but one
solution to this vexed and troublesome prob
| lem and that Is by the re establishment of
| the State bank with branches. Let our next
| Legislature take Immediate steps to remove
| the constitutional difficulty in the way of the
re-establishment of this old and honored in
sti.ution, and they will do more to settle and
pay off the debt than if they were to levy
| tax of sixty cents on the one hundred dol
| lars. This will do more to give relief to the
people, to encourage our Industries, to give
employment to our labor, than if they were
| to totally abolish all taxes. 1t may be said
| that there is a congressional tax of ten per
| tot hap hnf I
is to be hoped that congress will next winter
repeal that tax. If they do not, re establish
| the bank, anyway, and either test the constl-
| nationality Of that act of congress or operate
| the bank on comptroller's warrants, or, If
that cannot be done, then without issuing
notes until congress does repeal that tax.
The Third national bank, of Nashville, was,
and perhaps is, the most profitable bank ever
| in Tennessee, and the most profitable period
of its existence was when 1t did not
have a dollar of circulation. 1t never
did have more than ninety thousand
OF a bank do not depend upon the extent of
its circulation. If the profits of this one hit
tie bank, with a capital of only one hundred
thousand dollars, had been paid into the
State treasury, and the management OF the
State debt turned over to its president and
directory, you, would never have heard
word of complaint about the State debt or
the State taxes. These subjects would never
have given the people any trouble, and would
never have entered into the politics of the
State. Give US State bank, with or with
out circulation, and with a tax sufficient to
pay the interest on one-thlrd OF the present
State debt, and you will have no further
trouble. no further anxiety, no further fuss
In the Democratic ranks about the State debt
and State taxation. Give US a State bank
with circulation of its own and you will
bring relief to our parayzed trade, manutac-
lures, labor, agriculture, which will at once
start Tennessee on the high road to wealth
and prosperity.
THE STATE BANK SYSTEM.
Under the present system Of banking the
profits of bank depend almost entirely upon
its deposits. Would not a State bank, with
the deposits of the State and county officers,
and such individual deposits as 1t might ob-
tain, have as large a line of deposits as any
individual bank and as large a basis to OPP
crate on as any ether bank? Hon. Cave
johnson, who was one of the ablest men and
one of the best fnanclers that the State ever
had, who was, in the best days of the repub-
lie, known as the ''WatchDog of the Treas
ury," said In his report rs president of the
State bank, IN February, 1888:
From the first Of July, 1853, to the first of Janu
ary 1858, the profits of the banks amounted to one
seventy two dollars and fortyfv cents, making over
four and one quarter million of dollars made by the
The bank has instructed its correspondent III New
York to pay the interest on any BOMBS OF the State as
pose and pays the cheek of the treasurer without
regard to the amount of his deposits, leaving the
this day to the amount OF one hundred and twent'
thousand dollars. In addition TO the aid thus al
important facilities have been afforded to the COM
munity by furnishing over fourteen million OF tx.
change from the first of july 1855, TO the first of
july 1857, and that Sit e the suspension of specie
payments more than million or dollars OF ex-
cent premium. while exchange was selling at from
five to ten per cent The president and dir, did
hot 'A the as e8tot Ae
nary prices from the Fe9Ple , The fO exam I'M
last four years Will form more reliable test as to
the future operations of the bank than at any for
nectin with the report of the comptroller for the
same time, induced the president and directors 10
tober last: ''Wniie such number of banks exist,
and such heavy liabilities of the State are TO be met
some banking institution to sustain the credit of the
State seems almost Indispensable
would not seem safe % dispose OF the Bank OF Ten
and leave the people exposed to the conrac-
tons and expansions in the currency by the stock
erains the opinion expressed by the president and
directors in October las or can ne SEE how the
hereafter met without the aid of some institution,
possessing equal means and credit Inc proiltS OF
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 enlarging the subjects Of taxation well
as n the amount OF by sacrifice I cath the
1t is not deemed out of place here to state that in
now ia the bank and brafches might be usefulIy
employed by each of them, with little or no add
greatly add the profit Of the bank but to the
people of the State an enlarged circulation In cur
the means OF enabling the tank to afford additional
relief to the people during the in the money
market. Such a manifestation confidence in the
bank. after thorough examination into its cOndi
ton by joint committee of the two houses, and
ssmby to meet the liabilities of the State would Sc
the confidence of capitalists. enhance the value
of the State securities, and promote he best interest
OF our internal improvement companies.
In my report as comptroller l remarked |
upon the foregoing aud now remark here:
Not an argument is here urged by the hOnored |
statesman and fnancier then president of the bank,
not now apply with tenfold force in favor of re-es-
tabllshing it. l do not think it extravagant |
Indebtedness of The State would be paid from the |
net profits Of the bank In the foregoing have said
the State which Its mining, Manufacturing. agrIcul
tur.l, and. indeed, all industrial Interests would
derive from the establishment OF the bank and It's
branches have said nothing OF the great political
advantages that would accrue In building up in
bank monopoly, which Will ultimately prove the
greatest power In support OF central despotism as
ponent to Capitalization and powerful influence In
favor OF the constitutional doctrine OF self govern
|
trial interests of Or people. and to their political
well being, might not be entirely in place IN this
report and would of Itself III fully enumerated and
require volume. But every sue eedlng
days experience as comptroller OF the treasury con-
vinceS me more and more thoroughly of the trans |
cendent Importance to the Stale OF having such |
fiscal agency to aid in maintaining her credit paying
her debt and tightening the burden of taxation
A CIRCULATING MEDIUM FOR ALL.
| will add that | see no way by which we
can get rid of the irritating differences which
Aisku IF fLn Tyy-r 10 |
tive to the amount of currency necessary for
our wants except by the existence of the State
bank system. We must have green backs,
bat who is to fix the volume Of currency? The
eastern capitalists will insist that six hundred
and fifty million dollars is more than enough
for all the demands of trade, and that con-
traction should continue. The agriculturists
of the west and south say that twelve hum
Gred million dollars is not enough, and de-
mand initiation, and thus the war wages. and