Year: 1860

! IL


OF STEWART COUNTY.


Delivered IN tie Tennessee House Of Representatives,
/ Hoadag, January Esd, 1860. The qsestion being


on the final passage Of the bA % regdqte and reform


ae business Of Banking n the St0tsof Tennessee,


IRrrORrzD By W. Il, DRAg4ER.l


Mr.. LOCKHART. Mr Speaker wish to say a
few words now as this is the most important ques-
ton that has come before this Legislature, and is
proposition in which my constituents have very
great interest / simply wish TO explain my posi-
ton I do not intend to consume the time Of this
House by making long speech, bnt am unwilling to
let this opportunity pass without giving some rea-
sons why cannot support the bill now before this
House.


But, before I proceed, wish to know whether or
not I misunderstood my friend from Shelby, (dr.
Farrelly) in his remarks this bill few days ago.
understood him to say that the Memphis and 81.
Louis Packet Company, after having asked char
ter at the hands Of this Leglss ture and which was
chartered after long contest had refused to accept
it. owing to the amendments which were put upon
IT, aud that the Company has Since obtained char
ter from the Legislature of Missouri, and that the
course of this Legislature had driven the capital Of
that Company amounting to from Sl5O,000 70 s25O-
600 from the State Of Tennessee. Dld so unuer-
stand the gentleman?


Nh. FARRELLY. Yes, sir: that is correct


Mr. LOCKHART. Mr.. Speaker, find that am
correct in what understood to be the language OF
nv friend, and shall take occasion 70 speak OF that
again before / take my seat


And before proceed, wish to say, that, although
endorse every word in the Democratic platform,
1 am not one of those who style themselves the
hardest Of the hard. ! am willing to admit that
sound wellregulated banks are a convenience, and
that believe it to be duty to legslate so as to
give the people a safe and convertible currency;
and therefore [ would be willing to vote for gen
eral banking law applicable alike to all banks If
that law could be made sufficiently stringent to pro-
tect the people; ard then would be willing to eX-
tend charters to capital under its provisions. shau
vote against this bill because do not think 1t viii
protect the people, and were to vote for this Dill,
/ feel that / would stUltIfy myself upon TINS nOor
were to vote for this bill and then refuse TO grant
charters TO capital under II.


presume that every member on this floor Is en-
deavorng to reflect the viii of his constituents. !,
for one am trying to do that, and If / should, IN
giving my views on this subject take position taat
does not meet the views Of Sny member on this
floor am responsible alone to the people who sent
me here and It IS by them that l am to be judged


The Democratic party, of which l profess to be
an humble member, .'insists that our present bank
ing system shall be so reformed as TO enforce lnva
riable redemption at their counters by every bank
in the State increased protection TO the nOe-holder


limitation on their ISSUES to notes Of large de-
nomination the right of supervision on the part OF
the State and BY these and such other restrictions
as may be found necessary, to make as near an ap-
pPoach to a constitutional currency as may be found
wise and proper.


This is the platform upon which the Democratic
party stood to make battle for the rights Of the peO
pIe This is the platform upon which the gallant
Harris stood with the flag Of freedom equal rights
and equal justice, thrown to the breeze anu " was
around that flag that the masses Of Tennessee rallied
and endorsed that platform BY majority OF more
than eight thousand


One of the restrictions, and to my mind the most
important one, that propose to throw around the
banks is to retain legislative control IN the hands OF
4I,,- 10 whenever
the public good shall demand it. Whilst we would
protect the banks in all their "hOnest rights by
general banking law applicable alike to all banks
we would not create an artificial person IN the form
of bank over which the people, IN when all pow
er is inherent, canhave no control


And now, Mr.. Speaker, in advocating this leglsla-
tive control we are met by the argument that no
capitalist would take stock in concern having a
repeaable charter. If l am not Mistaken dlstln-
Quished member of the Opposition party (Mr. Nell
S. Brown once said that mo man, with the brains
of a sap-sucker' would take stock in such a con-
Germ And my friend from Shelby (Mr. Farrely)
said that this Legislature by imposing this power
to regulate BY general laws, and by imposing kind
ofindividual liability On-the Memphis and St Louis
Packet Company, had driven the capital OF that
company from the State. Sir. what Is the charac-
ter of the amendments that were put upon the
Memphis and St Louis Packet Company. that my
friend says drove their capital from the State! Ii
was that each stockholder should be liable for the
debts of the company to the amount of his stock
and the dividends he had received; and secondy the
company was made subject to such general laws as
the Legislature might from time to time enact reg
uating steamboats,, steambOatng, navigation ana
commerce And my friend says that the course
pursued by this Legislature, in adopting these
amendments, had driven their capital from the state
Of Tennessee to the State Of Missouri, where they
had obtained charter and were going to act under
it. If have misunderstood my friend, and am
doing him injustice, 1 hope he win correct me.


Mr.. FARRELLY, interrupting. That Is correct,
sir


Mr.. LOCKHART. keep in my drawer a book of
American Constitutions published IL 1883. l wish
to call the attention Of the house to the Constr
tuition of Missouri. Ny friend from Shelby
CAlr Farrelly) is a lawyer, l believe, but would
like for him to pay attention to the reading OF the
second section of the eighth article OF that constr
ton: No corporation, except for political or mu
nicipaI purposes or for the purposes Of education
and charity, shall be created, unless the Dill Great
ING the same shall contain provision that the same
may be repealed and annuled by majority OF both
houses of the General Assembly. And the stock
holders in all private corporations except corpora
tions for the purposes of education and charity
shall be responsible in their individual and private
capacity for all debts and liabilities OF every KIND
incurred by such corporation"


Now sir, if they would not take charter from
the Legislature Of Tennessee with limited liability,
and power to regulate by general laws how can
thev 90 to the State of Missouri and obtain charter
more liberal than the one We gave them, when
tie Constitution of Missouri says their charter shall
be repealabe, and that they shall be Individually
liable?


Mr.. FARRELLY, interrupttng. l do not know
how they could get it. but l want to know, Mr..
Speaker, il the gentleman denies that they did
get it.
have no doubt but that they got it. But do say
that If they got a charter from the Missouri
/ legislature ard that charter is no. repeal
/ able and does not make them individually liable
/ that their charter is unconstitutional will ask
nv friend from Shelby (lr Farrelly) if he does not
/ know that there is now a Bank 'going up in Mis-
souri, with million Of dollars capital, the charter
of which is repealable, and the stockholders indi-
/ viduallv liable? And does he not know that the
Pacific Railroad passing through the State of Mis-
souri, is by the constitution Of that State subject to
modification or repeal at the will Of the Legislature,
az well as all other Railroads and Banks and other
! chartered companies? l think it cannot be said,
that these provisions have driven capital from that
State Ii has not put down paper money. 1t has
not put down Railroads. It has not driven capital
from any business in that State, and l expect the
! gentleman from Shelby viii find that that prosper
Gus State has as much capital invested in various
] chartered enterprises as any other State of the
same are. l think il has a tendency to secure the
faithful prudent and honest management Of capital,
and to afford protection TO the people and to the
stockholder | hope the example from Missouri
will convince the gentleman from Shelby of this iact


have not examined, but | think it highly proba-
bic that more than half the banks in the United
States are under Legislative regulation IN some
form. No proposition TO reform the currency or tc


retain the right to avail ourselves of the power tC


correct in the future, can be made but we are met


bv the same handy objection. that the proposed re


form will drive capital fromthe State If this were


true in all the cases we could not make single re


form in the banks. If we propose to require indi


yidua liability, or abolish small notes, or retaiI


legislative control orif any other reform be propos
| cd we hear the same objection, 1T will drive on


capital have heard this objection so Often tina


it looks like it was made only for effect like law


yer arguing for his client using all sorts of argu