The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-27
AMERICAS STRANGE BANK.
How s.BucIx" White Maintained His
Credit in Spite of Panics.
Writer in washington Post.

WTlleI III w WASHING lOil L Ool'
The caption of this article was suggested
by a clipping which has been going the
rounds of the press of late, ander the mead
financial institution in the world
During the great tnan ,ial panic of 1857
of this city, spent rauch tine i'll the State
of Tennessee, and in Nashville had occa-
sion to white the history and status OF
number-Buck's Bank, located at McMlcn-
ville-struck him as being the most hide
pendent institution in thlS country, ard
perhaps in the world
Prior to 1857 there were large number
of free banks located in Tennessee. being
founded upon the LASTS of State stocks.
In those days any one who could sc'ape
together about $4,000 in State bonds might
start a bank, the banking bill having le-
Gently passed.
There was in he town of McMinnvil'e
certain old gentle nan by the name of
White who, by a very superior system CT
commercial shreWdness and domestic
economy, had after years of hard strLs
Cling managed to amass about fifty or
popular craze for bank starting Lad il
some way taken hold q White. wlo w9s
probably attracted by the glamour of lofti-
ness which pertain - the social status #
bank president, and after .lIe debate he de-
in McMinnvi,e
White was jovial old codger, for whom
the word genial seemed expressly coined.
and by a habit of promiscuous treating as
much by any other means, had &C
aared vast and vigorous local populari-
ty. Everybody called him Uncle Buck"
people of both high and low degree.
There was considerable excitement when
Whites intentions became bruited about.
Dialogues might be heard like the follow
Hi Uncle Buck! They tell me you're
going to start bank. Jest a lie, amt
mo, street That's the simon-pure truth.
You see, there's most everybody starting
a bank nowadays, and / reckon I might as
we'll have too. liz tell about it
Come and have horn with me-.
White, it soon transpired, had elected to
his sobriquet. The firm with which he
placed his order for the engraving of his
Bank must be situated in wild deer coun-
try, and ornamented the bank issues with
a wealth of antIers.
Some time after Whites enterprise was
fairly under way there arose the great
financial panic. and the State currency be-
came much DEPRECATED
Johnson, cashier of the State Bank at
Nashville, was the oracle, at that period.
of financial circles. and whatever he had
to say regarding the status of any par
ticular bank or bank paper was accepted
as an indisputable dictum. The majority
of the banks of any, prominence were con-
sequent1y in the habit of maintaining
their credit by RENTING sufficient guam
tity of coin to support whatever paper they
had afoat, to the bank at Nashville.
1t came to pass that one day our wor-
thy Uncle Buck received a communication
from cashier Johnson which filled him
of it was to the effect that the Bank of
Nashville having had from time to time
a very considerable quantity of his paper
presented over its counter, would be ex-
tremely glad if he could deposit with them
sem in coin to establish his credit and
guarantee the redemption of his notes.
Uncle Buck replied follows:
Sir: Your communication being duly
received ] beg leave to inform you that
it shall never become the custom of this
institution, sir, to forward coin for the re-
demption of its notes. If, sir, you will give
yourself the trouble to scrutinize our notes
you will find, sir, that they are inscribed
payable only at Bucks Bank, McMnnviIle
Tenn. 1 desire, further. sir, to acquaint
you with the fact that it is our invariable
custom to retain in the vault of our es-
tahlishment, sir, a goid piece for every dol
lar in paper which issue. Thus sir
may proudly state, we can at all times
meet our obligations. Yours obediently
etc
Uncle Buck told some of his cronies about
his tilt with Johnson, afterwards, and
sagely remarked that in his judgment the
only proper way to do banking was to al
ways maintain perfect equality in value be-
tween the amount of coin in the vault and
the amount OF paper outstanding.