Year: 1860




w w GU Xz


REPRESENTATIVE OF HARDENAN COUNTY,


In he Tennessee Legislature, Thursday, FeJ,ray 24h


1860, on the fOlOtgiHg amendment offered by himself


to the Senate bN to Tscbnyter the Union and Planters


Banks.


In recommending this amendment, we do not ask


gentlemen to turn themselves adrift upon a track


less sea of legislation without chart compass to
| guide them but we point them to the history of


other States which, like philosophy, teaches by ex-


ample and serves a beacon light to cheer the
| tempest-tOssed mariner to the harbOr Of safety


and the high destiny of his career. New York, Penn


sylvania, Virginia, Rhode Island, Ohio, New Jersey,


Massachusetts Delaware and many Of the principal
7, States embracing a very large proportion Of the


banking capital Of the nation have adopted the sys
J tenn. and what IL most remarkable, there Is not a
] single instance record where it has been tried
without the most eminent success. No State has
ever yet taken the backstep IN this important move
ment Wherever It has had fair and impartial test


the ncst sanguine expectations OF Its friends have
! been fully realized. With these facts before u.s.
| why may not Tennessee adopt this much needed
measure of reform for the better regulation OF her
| currency, her commerce and the protection Of her
citizens is she more dependant than other States
that she should bow in slavish and trUcuent sub
mission to the imperial edicts Of the Union and
! Planters BaTks-that she should bend the supple





or has she locked up in her bOundless and mex
haustble resources, treasures Of wealth and stores
of riches unequaled and UneXampled! / ask gen
tlemen, members of the Tennessee Legislature, to
answer this question as Tennesseeans and then vote
upon TIE amendment.


come row sir, to the next and last clause, which
provides that the stockholders shall be individually
liable general partners for the debts Of the cor
pOration and without going into an argument to sus-
tain nv position. / will merely remark, that be-
lie % no Of is
and sound in policy in every case. where the lead
ing moving cause of investment IS speculation or
anticipated profit by actual dividends to be declared
upon the stock taken, in the case Of banks
brokerages. insurances and all interpretations Of
strictly private and pecuniary nature. But, how
ever correct the principle, do not believe II would
be good policy TO attach 1t TO institutions for edu-
catIonal charitable purposes nor to railroads,
turnplkes and canals where the public good and
convenience is made the prime object and private
advantage only an incidental occurrence l shall
therefore vote fer this instance with Untegned
pleasure and alacrity, but while do so 1t Is but
lust to myself, that l should say, even though the
amendment be adopted, yet l cannot vote for the
bill and as l have no ambition to appear III the
ridiculous attitude of factiously opposing it, after
having abOred for its perfection, deem It proper
to make known, briefly, some OF the reasons that
will influence my action.


In my judgement sir there is scarcely doubt
but what the power exercised by State Legislatures
in granting bank charters IS wholly unauthorized by
and in direct conravention Of tho constitution OF
the United States.


The Sth section. article lst Of that instrument
reads that Congress shall have power to coin mon
ey, regulate the value thereof and OF foreign COIN
Now. sir, the very fact that the constitution dele
gates to Congress the unreserved power Of coming
money and regulating the value OF the same, is an
evidence, to my mind that it the intention OF
Its iustrOus trainers that Congress should have
sole and exclusive power to regulate the currency
Of the country.


IT, sir, the right of coming money and regulating
the value thereof was given to Congress and de- |
MED the States, that uniformity and regularity
might exist in the currency of the cOutry, then by
what rational logical line of argument are we to
arrive at the conclusion that they may substitute
the currency of Congress and Of the Constitution,
by a circulating medium that not contemplated,
recognized provided for by single clause OF the
Federal compact and that can have no uniformity
of value inasmuch as that must depend upon the
local laws restrictions and securities given by the
different States who vary as wiuely IN sentiment
upon this per2lexing question, as they are removed
from o;her, by diversity Of soil, climate and
production.
The 10th section same article contains the dec
laration that State shallhaye powerto coin money
emit bills Of credit make anything but gold and sill
coin legal tender in payment Of debts or pass
laws impairing the obligation Of contracts


We perceive by the first of these clauses that not
only was the power gwen to Congress TO coin money
shown by reference to the Sh section, but that was
positively denied to the States language cannot be
palmer its meaning more unequIyocal ana with |
out the most eXCrUciatng tautOlOgy Of construction
wholly authorized by the general planness and SIM
Dcity OF its style. II Will be impossible to arrive At
anv other conclusion, than that it the intention
of the Federal Convention to leave the question en-
tirelv as have before stated with Congress. While
by the second clause they are denied the power to
emit bills Of credits now sir the question arises what
is bill of credit? In the meaning of the Constitution,
is it bank note issued upon the faith credit and funds
of the State for the ordinary purposes Of cIrcula-
tion money, it is some other paper bearing eyl-
denCe of debt in which the credit OF the state Is III
volved? / know that great diversity Of opinion /
has existed since the foundation Of our Govern |
ment, as to what was meant by that pregnant term,
but it seems to me an easy and simple solution Of /
the problem is to be fOuRd in the connection in /
which the language appears The foregoing clause /
relates to currency, and provides that mo State |
shall have power 10 coin money. Money Is the |
thing here spoken Of, the thing considered; while /
the succeeding clause relates also to currency, and
provides that mo State shall have power to make |
ANYTHING but gold and silver coin legal tender IN |
payment of debts" Now sir, if the intervening |
prohibition to "eWit bills of credit does not COM
prehend paper intended to circulate money, then |
it certainly has very singular and meXphcabe /
connection.


But it is contenCed by many of those who favor |
the policy Of State banking, that bank note Is not
a bill Of credit upon the ground that upon the 1
face of the note there Is promise to pay on de- |
mand the whole amount for which it calls, and that





is made, and therefore, no credit is given or i'm
plied and hence the note only serves as a check |
or certificate of deposlte This argument might |
hold good to some extent if banks were Limited to
dollar for dollar in their circulation because, then,
they would be reduced from banks of circulation /
and discount, TO mere institutions of exchange and
depOsite and their emissions then, might be apprO-
priately termed certificates OF depOsite, as they |
would be required to keep dollar IN specie on
hand for every one in circulation But when four /
are ed n %
and silver in the vaults Of the bank and credit not
money. becomes the basis of their transactions it
is gross perversi9n Of terms, to call them certif-
Gates Of deposite They are certificates or bills of
credit, ard not depOsite they represent the debt
or credit and not the money OF the bank. And. as
an evidence they are the thing spoken Of in the /
prohibition Of the Constitution, have only to /
pursue the reading Of the instrument to the sue
ceeding clause and there we find that not only have
the States been denied the power to coin money and
emit bills of credit, but they also denied the
power to make anything but gold and silver coin |
the standard value of which has been fixed bv
Congress, legal tender IN the payment of debts !
The manifest object of which to shut ont an /
fictitious circulation and secure to the peODle of
this whole UniOn the first great blessing Of well
ordered, wise and benehcient government sound
and reliable currency of uniform value uDon
which the citizen and subject from one extreme of
the continent to the other, might base his financial
operations feeling perfect security in the wisdom
and efficiency Of hts government to protect him in
his rights OF property.


The next and last prohibition to which viii call
the attention Of the House is to be found in the
ceedng clause Of the same section and provides
that no State shall have power to pass laws im-
pairing the obligation of contracts" Now, sir,
hold that any act Of a State Legislature creating
bank charter, Authorizing he issuance Of notes for
circulation, upon any other than specie basis or
allowing them to pay cut one dollar IN excess OF
their ability to pay at any moment demand Is in
gross violation Of this latter clause of the 10th sec
non, because it must be borne in mind they are not
permitted to offer anything but gold and silver coin
in redemption OF their notes. Then any law grant
ing individuals or corporations the privilege Of
paying out those notes for circulation upon dis
counted paper, real estate or personal property


oftrr