Year: 1859

who happen to be luchy enough to live around
parent bank shall be relieved. The amendment
offer while il sticks substantially to the counter notS
system, brings relief to all. can't see that any
possible danger could arise in permitting branrke.
to pay out the notes Of the principal bank which II
may have received in the due course of trade. II
the branch receives a note or bank bill from one
customer and then pays it out TO another the bank
does not by this act carry the note farther from the
place it was payable than when it received it, If
citizen voluntarily carries bill from the point where
payable will you compel the bank to carry il back
home every time the bank may see it2 If this duty
is imposed upon it it will be employed in carrying
about its paper more than halfits time This policy
would lead the bank to refuse note not payable at
It's counter on deposit or in payment Of debt due
i-for all such paper would not only be dead capi-
tai until II could be exchanged but the bank may
be called by the depostor for counter notes at any
time. The present form of counter note system
works hard upon Clarksvie on account of its local
ity and the character ots trade 1t is situated near
the Kentucky line and receives the bulk of its trade
from that State. In addition to heavy trade in
-four, pork, and other farm products two and half
millions of dollars worth of tobacco comes into the
Clarksville market annually.


Now these Kentuckians will sell their tobacco for
counter notes and either draw silver and carry to
Kentucky banks, or put the money in their pockets
not keeping their deposits TO 80 much extent in our
banks. We do not so much object to their drawing
specie we afraid that we would lose sight of
our counter notes and have no material upon which
we can bank. Our trade is very heavy in the
Spring. We sometimes use more than $l0s 900 in
q week to pay for tobacbo. If this counter note
currency is continued the banks would he unable to
furnish the large sums needed on such short notice
We have three times the for money in the Spring
than any other time of year. The operation of the
strict counter note system is to keep the capital uni
form in respective banks districts the year round
] object to this. want s2,OOO,O00 in Clarksville
in the Spring, to buy the tobacco this business over
am willing for some capital to be used in wheat
and other produce, in the fall and winter in cotton
and again in the Spring in tobacco. The Nashville
parent banks always increased the capital of the
Clarksve branches with part ofther capital to buv
bills when he tobacco trade is heavy But under
the counter system this could not be DONE for the
branches could mott pay parent bank notes. If the
counter note system Of last session is preserved,
Clarksville will be compelled to hare large increase
of permanent bank capital or have its trade greatly
crippled.


believe that the plan of making all notes payable
at the principal banks, and permitting the branches
TO receive and pay them out, would be as good
mode as any that could be adopted.


If this plan should be adopted, due regard should
be had to the interest of the three natural divisions
of our State. l expect come as near Legislating
lW three SuitcS rs any uenDeratlve hOdy IN the
Union, and this is reason why there are 80 many
conflicting views among us. Our interests are in
many instances diverse and it is difficult to frame
law general in its nature TO suit all promise
East and West Tennessee, so far as | am concerned
to vote literally in this respect should it even be to
the extent of giving to each the principal Office of
whatever institution it is intended should do its
banking


The I'd, 9Th and 7th plans mode of paying out
notes are entire abandoments of the counter note
system, and doubt not will receive little favor at
this end of the capitol.


I think we should relieve the banks of no more
restrictions than are necessary to enable them to
bank proftably to themselves and safely to the
country.


am equally opposed to the almost hard money
system of last session and the kting system of pre-
vious years.


have endeavored to present to the House the
various views this branch of the subject of bank
ing, because whatever plan we may mature on the
question now before we should incorporate it in
every charter we may grant or any general banking
law we may pass.