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THE BANK OF TENNESSEE. The people of the State will share the pleasure with which we publish the following letter from the Hon. CAVE JOHNSON, President of the Bank of Tennessec, to a Committee of Merchants of the city, advising a suspension of specie payments by the Bank:
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From the Union and American. The Bank of Tennessee. The people of the State will share the pleasure with which we publish the following letter from the Hon. CAVE JOHNSON, President of the Bank of Tenpessee, to a Committee of Merchants of the city, advising a suspension of specie payments by the Banks
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This community was startled, a few days ago, by the reported failure of several of the Banks of this State. We are satisfied the alarm is prematnre, if not without cause, and lay before our readers the facts, as they have occured. The Bank of Nashville has suspended, and, on Monday, the Bank of Tennessee, the Union and Planters Banks, at Nashville, refused the paper of several Banks, not because they considered those institutions insolvent, but because they had no redeeming agencies in Nashville, and their paper was not immediately available for banking purposes. The Banks, of this place, which are all in the very soundest condition, have been compelled, by the tightness of the money market, to refuse the paper of some other Banks, and solely for the reasons assigned above. The paper of none our Banks is discredited in Nashville, as has been reported, and we believe the Banks of the whole State, with an exception or two, will maintain their credit under any pressure to which they are likely to be subjected. The Banks of Clarksville-the Planters, the Tennessee, the Northern and the Bank of America-are not only willing, but have the ability to redeem their circulation. This we say, advisedly.
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SUSPENSION OF THE BANK OF TENNESSEE. YESTERDAY morning there came whizzing over the wires, the astounding news that the Bank of Tennessee had suspended. The report proved too, true, and in an hour was known to nearly every one in town, and produced much excitement. Many who held the notes of the Bank, seemed to think they were "gone," and for awhile made quite a stir, but on learning, as they soon did, that the other Banks here, were all receiving her notes as usual, and on being assured that they would in 1 probability continue to be current, they seemed satisfied, and in two hours things wore quite a quiet appearance. The Bank of Tennessee has been sustaining a considerable "run" for gold for some days, but there was no excitement about it until Wednesday, when depositors and noteholders at Nashville became alarmed, and commenced a "run" on her that was kept up till the Bank closed. Next morning the determination of the Bank to suspend specie-payment, was announced at Nashville, and, by means of the telegraph, was known in a few hours all over the nation. We do hope the people will not get up any unnecessary excitement about this suspension. For all the purposes of 99 s of every 100 persons in the community, the notes are as valuable now as ever, and the notes of other Banks are not rendered one cent less valuable by this suspension.
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THE BANKS OF NASHVILLE. NASHVILLE, Tenn., Thursday, Oct. 15, 1857. The Bank of Tennessee suspended specie payment to day. The Legislature is considering a resolution to le. galize a general suspension by the Banks. The action on the resolution is doubtful. The Plantera' Back and the Union Bank will hold out to the last, unless authorized to suspend.
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NASHVILLE, Oct. 16.-The Bank of Tennessee has suspended. The Legislature has under consideration the subject of legalizing suspensions.
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Tennessee Legislature, dcc. NASHVILLE, Oct. 16.-The Bank of Tennessee has suspended specie payments. The Legislature is consider ing the legalization of suspension on the part of the Banks.
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NASHVILLE, Oct. 15. The Bank of Tennessee has suspended.The Legislature is endeavoring to pass a resolution to legalize the suspension. Action doubtful. The Union and Planters banks will hold out to the last, unless authorised to suspend.
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NASHVILLE, Oct. 15. The Bank of Tennessee has suspended.The Legislature is endeavoring to pass a resolution to legalize the suspension. Action doubtful. The Union and Planters banks will hold out to the last, unless authorised to suspend.
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say to serving puoces 22/1 uo Bureq uomsanb 2/2-898T bill, to re-organize the Bank of Tennessee. Mr. ROSS said: Mr. SPEAKER: Sir, I introduced the bill now before the Senate, for the purpose indicated in the bill; but before 1 proceed to discuss the merits of the proposition, I desire to say 8 few words in relation to my opinions about banks. As an abstract bulls 118 01 pesoddo ше I quistions original us 20 of circulation, or in other words, banks to make and put in circulation paper money. But as & Senator. here upon this floor, I take this position, that the Legislature of Tennessee has, in gone by days, created the present currency of the State such as it is. And I hold it to be the duty of the present Legislature to sustain for & given period that currency, until the people can manage their affairs and be prepared to meet the change; and whenever the people are ready for the change, and desire it, then would like to see the policy adopted that would gradually remove every bank of circulation in the State, and come to & gold and siver currency. But I hold that it would be manifestly unjust to a large portion of the people, who went into business and bought property at very high prices under the 8Xpansion of the currency when money was abundant and cheap, now to compel them to pay out under the unprecedented contraction of the circulation, which now amounts to but little over one-third of what it -oddo entire being puy '0.98 the S'B.M. PIO any JO 'Meu Aue chartering 07 pes bank, I thought the best policy that could be adopted to obtain the desired relief for the country, was to increase the capital of the Bank of Tennessee, 80 88 to enable her to throw into circulation, and keep in circulation, some three millions of dollars more than she can at present. This additional amount of circulation furnished by the Bank of Tennessee, will supply the vacuum occasioned by the withdrawal of the circulation of the Union and Planters' Banks, which must continue until the expiration of the charters of said banks, which are now close at hand. And another reason I have for this increase of the capital of the Bank of Tennessee is, that she has furnished & circulation of more uniform value, and with which the community are better satisfied, believing it to be the most reliable currency in the State, under the present difficulties of the monetary affairs of the country. I thought the best interests of the country would be promoted by increasing the capital of the Bank of Tennessee; and, hence, I supported the proposition that passed the Senate 07 the "MOIA m object the 'ore shay emos return to my proposition, which is to re-organize the Bank of Tennessee. The bank has yet ten years to run by its charter Iam aware of the fact, that different Governors, and the present President of the bank, have recommended to different Legislatures to put the bank in liquidation. But to take as data what has been done in that direction, I am not inclined to think it will be done at all; therefore, looking to the interest and protection of the people, I propose in this bill, now before the Senate, to re-organize by calling in and winding up all its branches, now eight in number, and establish one branch in the eastern division of the State at Knoxville, supposing it to be the most important commercial point in that division, and one branch at Memphis, for the reason that it is the great commercial emporium in West Tennessee; the mcther bank to remain as at present, in the city of Nashville. Now, my object in this re organization, is to place the bank in the first place, in & situation that she will have it in her power to make money, and make it largely, for he State, thereby aiding the treasury and lessening the tax upon the people, by centralizing her capital at three of the most important commercial points in the State. Now, in relation to her presentsituation, with her branches scattered all over the State-many branches located where they cannot do & very promost Jo ABA eq: u! business 1 profitable business for banks is & bill business, and the remote distance that many of them are situated from any important commercial point, puts it out of their power to do any thing of importance in the way of buying bills, unless they operate through an irresponsible carpet bag system, which, to say the least of it, is fraught with too much risk, when the public money is concerned. In relation to the adthe pus 1he 07 accrue pinom table branch 8 sq peeple the 01 at Memphis, they would appear to be incalculable, when we come to consider that Memphis is the natural market for West Tennessee, and North Missississippi, in the great staple of cotton, where from three to four hundred thousand bales of cotton must go every year to find a market. The cotton trade of Memphis alone, is worth from twelve to fifteen millions of dollars every year, and increasing, to say nothing about the large amout of wheat, corn, oats, and various other products that find 8 ready market there. The bank with & branch at -100 uo 01 shile eq pinom ton bills enough to carry on the commercial business II of the State. There is another very important consideration in this proposition, that is that the State would save at least $50,000 a year in administering the Bank, that amount saved is that made, and properly belongs to the treasury of the State. And that amount made every year with the interest accruing and reinvesting the same, would amount to over [$800,000] eight hundred thousand dollars, that would be saved in administering the bank for ten years. This large 0 sum would properly go into the Treasury of the State if o defray the ordinary expenses of the Government, eq 01 taxes JO junome eq: Peduce thereby put ollected off of the people. I say to gentlemen Senators, this is not an over estimate by any means, ut in my opinion, falls short of the true amount L bat would be saved, when we look to the fact that his bill proposes to administer the bank with two ranches in connection with the mother Bank. th Well there is one point embraced in this bill, bout which, I presume we will all agree, that is, 70 reduce the number of agents, officers, &c., two hirds, and I presume every Senator here will agree ith me in saying the fewer agents you have to andle the public money the safer for the people II's Renerally poo8 equi 07 base ou nd defalcations, when there & misuse of the public oney em BY eq 07 using you op I no cts of the officers or agents of the Bank, for I am ot & man to make complaints of that character. here has been & great deal said about the rights interest of the people since the meeting of this
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# The New Bank Bill. An Act to extend the time for acceptance to the sus- pended Banks. SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That the provisions of the Act of the General Assem- bly, entitled, "An Act to enforce the resump- tion of specie payment by the suspended banks, &c.," passed January 28, 1858, be, and the same is hereby so amended as to extend the time of acceptance of said banks, ninety days from and after the passage of this act. SECTION 2. That said act of January 28, 1858, be so modified as to postpone the retir- ing of the small notes under the denomina- tion of five dollars, from the first of July, 1858, until the first day of January, 1859; and the retiring of all notes under the denomina- tion of ten dollars until the first day of Janu- ary, 1860; and that all the Free Banks and Stock Banks, which accept the provisions of the above recited act, be allowed to receive and pay out the notes of the Bank of Tennes- see and branches. SECTION 3. That the Bank of Tennessee shall not be required to resume specie pay- ment until the Union and Planters' Banks shall file their acceptance of the provisions of this act, and of an act passed at this session, entitled: "An act to enforce the resumption of specie payments, &c.," and if they do not accept the provisions of said acts, the day of resumption by said Bank of Tennessee shall be left to the discretion of the President and Directors. SECTION 4. That four hundred thousand dollars of the stock of the State in the Union and Planters' Banks, be sold by the Pres- ident and Directors of the Bank of Tennessee, as now authorized by law, and establish a branch of said Bank at Memphis, with a capi- tal of two hundred and fifty thousand dollars; and a branch at Knoxville, with a capital of one hundred and fifty thousand dollars: Pro- vided, such stock shall not be sold for less than par in gold and silver. SECTION 5. That the charter of the Bank of Tennessee be so modified, as to permit the parent Bank at Nashville, to deal in foreign or domestic bills of exchange, to such amount as in the judgment of the President and Direc- tors, the interests of the Bank, its means, and the demands of the country require, but the branches of said Bank are not to be affected so far as their banking powers and business is concerned by the above modification as to the parent Bank. SECTION 6. That the same privileges con- ferred upon the parent Bank, by the last fore- going section, is hereby extended to the branches at Memphis and Knoxville; when established under the provisions of this act.
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THE NEW BANK BILL The following is the Bank bill which pass ed the House of Representatives on the 18th, with the concurrence of the Senate: an act to extend the time for acceptance to the suspended Banks. SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That the provisions of the Act of the General Assembly, entitled, "An Act to enforce the resumption of specie payment by the suspended banks, &c.,' passed January 128, 1858, be, and the same is hereby so amended as to extend the time of acceptance of said banks, ninety days from and after the passage of this act. Sec. 2. That said act of January 28, 1853, be so monified as to postpone the retiring of the small notes under the denomination of five dollars, from the first of July, 1858, until the first day of January, 1959; and the retiring of all notes under the denomination of ten dollars until the first day of January, 1860; and that all the Free Banks and Stock Banks, which accept the provisions of the above recited act, be allowed to receive and pay out the notes of the Bank of Tennessee and branches. Smo 3. That the Bank of Tennessee shall not be required to resume specie payment until the Union and Planters' Banks shall file their acceptance of the provisions of this act, and of an act passed nt this session, entitled "An Act to enforce the resumption of specie payments, &c.," and if they do not accept the provisions of said acts, the day of resumption by said Bank of Tennessee shall be left to the discretion of the President and Directors. Ssc. 4. That four hundred thousand dollars of the stock of the State in the Union and Planters' Banks, be sold by the President and Directors of the Bank of Tennessee, as now authorized by law. and establish a branch of said Bank at Memphis, with a capital of two hundred and fifty thousand dollars; and a branch at Knoxville, with a capital of one hundred and fifty thousand dollars: Provided, such stock shall not be sold for less than par value in gold and silver. SEC. 5. That the charter of the Bank of Tennessee be so modified, as to permit the parent Bank at Nashville, to deal in foreign and domestic bills of exchange, to such amount as in the judgment of the President and Directors, the interests of the Bank, its means, and the demands of the country require, but the branches of said Bank are not to be affected 80 far as their banking powers and business is concerned by the above modification as to the parent Bank. SEC. 6. That the same privileges conferred upon the parent Bank, by the last foregoing section, is hereby extended to the branches at Memphis and Knoxville, when establised under the provisions of this act. MM
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# AN ACT. To extend the time for acceptance to the suspended Banks and for other purposes. SEC. 1. Be it enacted by the General Assembly of the State of Tennessee, That the provisions of the Act of the General Assembly, entitled, "An Act to enforce the the resumption of specie payment by the suspended banks, &c.," passed Jan. 28, 1858, be, and the same is hereby so amended as to extend the time of acceptance of said banks, ninety days from and after the passage of this act. SEC. 2. That said act of January 28, 1858 be so modified as to postpone the retiring of the small notes under the denomination of five dollars, from the first of July 1858, until the first day of January, 1859; and the retiring of all notes under the denomination of ten dollars until the first day of January, 1860. and that all the Free Banks and Stock Banks, which accept the provisions of the above recited act, be allowed to receive and pay out the notes of the Bank of Tennessee and branches. SEC. 3. That the Bank of Tennessee shall not be required to resume specie payment until the Union and Planters' Banks shall file their acceptance of the provisions of this act, and of an act passed at this session, entitled, "An act to enforce the resumption of specie payments, &c.," and if they do not accept the provisions of said acts, the day of resumption by said Bank of Tennessee shall be left to the discretion of the President and Directors. SEC. 4. That four hundred thousand dollars of the stock of the State in the Union and Planters, Banks, be sold by the President and Direcors of the Bank of Tennessee, as now authorized by law, and establish a branchof said Bank at Memphis, with a capital of two hundred and fifty thousand dollars; and a branch at Knoxville, with a capital of one hundred and fifty thousand dollars: Provided, such stock shall not be sold for less than par in gold and silver. SEC. 5. That the charter of the Bank of Tennessee be so modified, as to prevent the parent Bank at Nashville, to deal in foreign or domestic bills of exchange, to such amount as in the judgment of the President and Directors, the interests of the Bank, its means, and the demands of the country require, but the branches of said Bank are not to be affected so far as their banking powers and business is concerned by the above modifications as to the parent Bank. SEC. 6. That the same privileges conferred upon the pareut Band, by the last foregoing section, is hereby extended to the branches at Memphis and Knoxville, when established under the provisions of this act.
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# Mr. Bell's Theory of Currency. Mr. BELL, in his great anti-Administration speech, delivered and prepared for circulation on the eve of the adjournment of the last Congress, in taking issue with the Democratic doctrine on the subject of Currency, with his accustomed modesty declares, that- There are some important truths or doctrines connected with the subjects of trade and currency, of which the President and those who sustain his views would seem to be ignorant, or behind the age. From the time of Adam Smith, it has been admitted by writers upon political economy, that bank notes, or a paper circulation founded upon such securities as insure their convertibility into gold and silver on demand, are of equal value, in all respects, to gold and silver. A not less important fact, which appears to be ignored by the President, is the superior advantages and convenience, in some respects, of a paper currency, or circulation convertible into gold or silver. A sound paper circulation has not only the advantage of cheapness and convenience, as a medium of exchange; but, to the extent that it takes the place of the gold and silver that would otherwise be required to be kept in circulation in any community or country as a medium of exchange, it adds to the floating or unfixed capital of the country. The gold and silver dollar released or expelled from circulation by a paper dollar, being no longer required as a medium of exchange, in which employment it could not increase, but, on the contrary, daily loses by abrasion, becomes a part of the active and productive capital of the country, and adds its due proportion of increase to its wealth. If, therefore, the President, and those who support his policy, should succeed in putting down all banks of issue, and provide no other paper circulation of equal value, it can be demonstated that $100,000,000, at least, would be withdrawn from the present productive capital of the country, without any equivalent benefit. As this speech has been extensively distributed over the State, and embodies, doubtless, the leading ideas that will be urged in the next canvass by the party of which he is the recognised head, such a declaration as the foregoing is worthy of special note, as illustrating the Federal egotism of the author, the singular fallacy that characterises all bank logic, and the dangerous tendency of such a policy in this respect, as gentlemen of Mr. BELL'S School would force upon the country. The propositions of the foregoing extract are set forth with a self-importance and an arrogance of style peculiarly the author's own; and yet, from the first letter of the opening sentence to the last letter of the concluding sentence, it is one tissue of bungling, ridiculous assumption, untrue in fact and untrue in theory. For instance, we are first told that the President and those who sustain his views on the subjects of trade and currency, "seem ignorant or behind the age," and this remark is based upon that portion of the President's message which declares "it is apparent that our existing misfortunes have proceeded solely from our extravagant and vicious system of paper currency and bank credits, exciting the people to wild speculations and gambling in stocks" Where was the ignorance displayed in such a declaration? Did not the statistics of the country show an unusually inflated condition of the currency? Did not the fact of the inability of the Banks in nearly every locality, to meet the legitimate demands against them, the suspension of all and the utter failure of many, clearly attest to the world the truth of the declaration the President had made? For, that such a period of devastation should occur at a time when the nation was at peace, when there was no reason for extraordinary expenditures, public or private, when every branch of productive industry was in a state of wholesome activity, and California furnishing her annual harvest of gold, can only be explained by referring it to the evils of their, the Bank's, own creation. Facts so apparent and conclusions so inevitable, leave the charge of ignorance or wilful recklessness at Mr. BELL'S own door. Mr. BELL sets out by assuming a fact at the basis of his argument, which, unfortunately for his conclusions, never existed-that is, that "a paper circulation, founded upon such securities as insure their convertibility into gold and silver on demand, are of equal value in all respects to gold and silver." Without stopping to debate the proposition, we deny the fact that there ever was in the history of banking a "paper currency" founded upon any such securities; and to bear us out, we have only to refer to the history of banks of issue from their inception to the present time. Of the thousands of banks which such statesmen as Mr. BELL have imposed upon the country, how many of them in their time have failed or suspended, leaving a rotten and depreciated currency in the hands of the people, which, if convertible at all, was only convertible at their pleasure? Will Mr. BELL or his friends point them out? Have not their very "best banks" as they are sometimes termed, (the Bank of Tennessee, for instance,) been the first to suspend and the last to resume? Why did not Mr. BELL, by way of strengthening his argument, point to an instance of a paper circulation "founded upon such securities as insured its convertibility into gold and silver," at all times? But these are minor points in Mr. BELL's theory on currency, in comparison with his next master stroke, in which the grand discovery is made-of which he may well suppose the President and those who sustain his views were ignorant-that "to the extent paper money takes the place of the gold and silver, that would otherwise be required to be kept in circulation in any community or country as a medium of exchange, it adds to the floating or unfixed capital of the country. The gold and silver dollar released or expelled from circulation by a paper dollar, being no longer required as a medium of exchange, becomes a part of the active and productive capital of the country, and adds its due proportion of increase to its wealth." Stupenduous argument, indeed! Wonderful discovery! Let us simplify it for more easy comprehension, as follows: Real money, that is, gold and silver, is a thing of value, as much so as corn, wheat, or any other commodity, and constitutes part of the actual wealth of the country. Being most useful as a medium of exchange it is generally used in that way. Paper is a thing of comparatively no value, and the labor required to produce one gold dollar would produce ten thousand paper ones. Now, says Mr. BELL, to substitute the paper for the gold and silver, and let that occupy some other relation in the channels of trade, would be adding just that much more to the pro-ductive capital of the country and to the increase of its wealth. If this be so, it is a sad waste of the precious capital and wealth of a country to coin gold or use any thing as a medium of exchange more valuable than paper. It was a foolish blunder in the framers of our constitution to declare that nothing should be made a legal tender but gold and silver. But Mr. Bell's theory is too fallacious to admit of serious argument. The simplest mind can see that ten thousand dollars of real money is withdrawn from circulation to day, and that much paper money printed and thrown out in its stead, thus the real wealth of the community has not been increased, the paper or sham money being valueless, except so far as it is sustained, dollar for dollar, by the real money withdrawn; and that just to the extent the real money is applied to another purpose and ceases to be the basis of the sham money, the latter becomes a spurious circulation, a fraud upon the public. Mr. BELL's theory upon currency has been very fully and effectually tested in Tennessee of late, and need we state the result? Every man has a practical
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0 Johnson, the President of the Bank of Tennesseee, makes oath that the accompanying statement made by the officers the Bank and Branches, he to be correct Sworn to and subscribed before me on the 19th day of October 1858 JOSIAH FERRISS, J.P. X BANK OF TENNESSEE, Oct. 20, 1858. To THE COMPTROLLER OF THE TREASURY-Sir: In liance with the act of the General Assembly at its last session enclose you statement of the condition of the Bank of the ist October, the end-of the first quarter of year. the Bank In ing think my duty to accompany it with briefrep resents ion of the conduct and polloy adopted by its Directors, that its operations may be better and more readily understood. The spension of specie payments the Bank Octo her last, at this time needs no vindication. The causes which led to that event are now known to have beeen general, extending over the United States, as well asall other commercial countries, and may be properly per traced to an undue expansion of the and trade of the country. The exp ansion of the banks in the different States, may have had much producing it. But whatever that may havebeen, cannot in the degree of to Bank the Tennessee. For some years before, its circulation had been at no time 80 expanded as to excite over trading the spirit of wild and hazardous speculation nor has it on the other hard been so reduced as to barnes and oppress its debtors. The circulati had averaged about two millions upon specie basis of about half that sum. The statement now presented together with those*rent to the Assembly at its last which were carefully exam of of the composed decided majority ined nents of the Bank, abundantly prove that it has at all times been bounds, on side, either extremes avoiding within kept and the as uniform people to the and affording of the would business at country and and permit, circumstances allits means the keep the same tchanges atno limits, time and one proper exceeding per reasonable premium. and most of the time half that amount. When was ordered by the Directors, they deter that it should notbe madea for enlarging its business non, and that limited by by so doing its paper circulation was which be amount 23 for about necessary kept and of the people as of the Bank and to the in condition resume itself of Bank payment the specie of the interests country the The adopted by the Bank was approved by the the General Assembly when directed that the Bank should be compelled before the 1st evidently In tending favor the Banks and the by en abling them obtain the benefit of the present crops for the payment of their on res' time them rictions at posing the same debts: and busine the their for heaviest of penalties management violation of them- these were obligatory upon the Bank of Ten utmost the caution nessee, with the supp forfeiture policy of the General Assembly, the ink of its with by safety. aid every thetime of payment on their bills and their notes It. to The exhibits but moderate reduction in the line of since July last, than one hundred thousand dollarson its notesand still less on bills. The principal stock banks having refused to accept the provi sions the late act of the General Assembly, and claiming thei of violation chartered its from rights exempt penalties adopted different policy from that of the Bank of Tennessee. and determined resume the specie four months ad vance of the time indic ated the Legislature, which necessari required still further reduction the paper and more rigid of their debts. self defence the Bank Tennessee was forced to adopta similar policy and addi usual their withholding ground- those opposed to all banks for assaiting the Bank Tennessee. was as rotten, and of public and for some time the Planters' Bank fused to paper. These attacks upon have from time to time, regardless of the great interests of the State its and proper management. and without any found ation in truth; and after the sworn statements of its officers had ben lished and verified byan of the Legislativ and with full know that the State pledged for the payment of its liabilities, it was the settled purpose its assa ilants by destroying public onfidence, the was such the extent an had public predicted. which they fidence rticularly in the States where iten joyed very large circulation, that $617 995 its notes were turned for to the principal bank in Nashy tween the 1st July and the st October, they were paid and now of the Bank vault the Under such the Branches finding that no busi ness be safely done by discounts for the public and know ing their ability meet all against them, in August resumed the specie, and have it. The principal Bank at Nashv having but small tion during the suspension, refused payment upon it. made of demand any gold The specie payments by the Branchesin advance of the time selected by the General Assembly, was made from rough that less from the and the than from postponement until would afford also satifactory answer the unscrupulous as saults made upon the banks its assailants It would restore public its ability to meet demands, and might enable them the earlier to re ume their legitimate and customary The discredit thus brought on the Bank, together with thepoli cy by most of the stocks and free banks. of the of from State, parts hav had from done formerly which was greatly desired by its Directors, and so needed whilst of want this the and community; continues notes put in alation in any part of the State shall at banker some by must returned rent one, that but little busin can lone other than and debts their their and that redeeming the notes, collecting be reduced. must bank the profits Many of the to which the State has been subjected from want of and regularity in its paper circulation has the of the banks, out the competi business and for public favor which necessarily When was ascertained that the United States Bank could defic was be rechartered, of paper and the Bank was chartered to its place. and the State partner half that the under for who adv a few their own of managed trol antage, and thenext session of the Legislature upon for another ocounteract its effects, and the Planters' Bank was chartered, aud the State became its partner also, subscribing or purchasing near quarter of million of dollars of its stock The expansio and intractions of these two banks were sup posed to have had much influence in producing the disastrop period of 1837 and the Legislature makes Bank of own for the protection of its citizens, and the Bank of was chartered with capital of five millions: but little over half its capital in means has been as yet furnished, whilst the of the State in the other banks was increased to near nine hundred thousand dollars. The two banks were placed under the control their Stockholders, who are believed to bemost ly citizens of other States, whilst the Bank of Tennessee wasmade subject to the control of the General Assembly. Private capital controlled by private interests was thus arrayed against public capital under the control of the Legislature: and near million dollars the means of the State placed under the control of the former, to enable it the more successfully to the latter. with compete cannot otherwise that in the management of these antagonistic interests. collisions will take place prejudicial to the terests of the people and the State as well as the banks. In the the of Gov. last entire of Johnson, the message State circulation stated at nine lions of dollars, cannot now but little exthat of sum third ceed one Debts contracted by the State, counties and cities, Internal Tm. provement companies, as well as individuals upon the inflated currency that then existed will now have to be paid with the not if and circulation. to a reduced present gold one exclusively Such expansions and contractions in the paper of the State. cannot but injuri ously affect every interest, and will occur periodica so long as it is left under the control has as the and stock banks, their interests may demand it, which are often most advanced by its irregularity Whatever may now be thought of the propriety of the organi zation of those can scarcely that such be never or now can interests the from be remedied, until it is settled which of them shall be adopted whether all them shall The necessity of the citizens against the expansions and contraction of the stock banks, which existed and produced thechartero the Bank of Tennessee in 1838 exists the present time. and demanded now than at that time. The policy which led to its adoption will require its protectio now, and an of its capital to the amount contem plated 80 enable to supply any deficiency the capital and currency which will be produced by vithdrawal of the capital of the other banks. if itshal be the determination of the people dispense with them the of their charters. It was last winter that the present state things and was urged upon the members the General Assembly the capital of the bank for the pur now relief afford some of the enab ing needed. much people by supplying the deficiency in the paper currency which now exists The State dispense with the use of banks during the existence of the rithout vio lation of their vested will resort = to an is it nor gold rights; and currency at any time. The people have been acenstomed to the use of bank paper for half century, it the cur. rency in almost State of the Union, in of the commercial countries so intimately connected with the value of property and labor-so onvanient in the transac very business, that itsabolition. however grad would oduce and in the neither advance the of the State the peoin the result use the per ple. If of the adjoining States, asis believed to be the case this and Arkansas less afford Mississippi rency than that mished by our own urged by the advocates of that system, that upon the of the once would by the place mi six over lion the of 1WO the Within 18 years, paper metals. currency of the State has been from circu at if silver yet see has place, that done so within two years, how much longer time will be juired The influx of gold and silver will mainly depend upon the reom the products the State sold in foreign mar than we webuy more whilst occur will sell, not and whilst our banks by their policy give currency to foreign bank the our them thereby ban hin the tate and to realize large amount of of our products. the sales from exchange The now being made Sof lispensing with the use of under ten dollars will enable us decide whether and gold be anexclusively taken steps urthe with the true-interests of the people, and done tol how and be with inof State is the every The value the much of upon influence has and so roperty and price of labor, that its proper has be and to should not interest, every the utmost sportance left to the of bankers and as heretofore. but hould be the the ntatives of the eople The State not only the amount to be sed and holders made the be every paper issued by its authority, and that the be the should into the paid from arising rofits banking treasury and relieve the people from taxation to that
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l'ennessee was forced to adopt a similar poli of collection and withholding their usua ecommodations. It furnished additiona grounds to those opposed to all banks fo assailing the Bank of Tennessee. It was denounced as rotten, unsafe and unworthy of public confidence; and for some time the Planters' Bank refused to receive its paper.These attacks upon it have continued from time to time, regardless of the great interes of the State in its preservation and proper nanagement, and without any foundation in ruth; and after the sworn statements of it ficers had been published and verified by examination of the Legislative committee and with a full knowledge that the State tood pledged for the payment of its liabili ies, as if it was the settled purpose of it assailants by destroying public confidence, to produce the ruin which they had predicted Po such an extent was the public confidence mpaired particularly in the adjoining State where it enjoyed a very large circulation that $617,995 of its notes were returned for redemption, to the principal bank in Nash ville, between the 1st of July and the 1s October, they were paid and now remain ir the vault of the Bank. Under such circumstances, the Branches inding that no business could be safely lone by discounts for the public, and know their ability to meet all demands agains hem, in August voluntarily resumed the payment of specie, and have since continue The principal Bank nt Nashville having but a small circulation, at no time, even du ring the suspension, refused payment it gold of any demand made upon it. The resumption of specie payment by the Branches in advance of the time selected by the General Assembly, was made from : thorough conviction that less evil would re sult from it to the Bank and the people, that from a postponement until November. I would afford also a satisfactory answer to the unscrupulous assaults made upon the bank by its assailants. It would restore pub confidence in its ability to meet all de mands, and it might enable them the earlie to resume their legitimate and customary business. The discredit thus brought on the Bank together with the policy pursued by most o the stocks and free banks, of returning it notes for redemption from all parts of the State, have prevented it from granting ae commodations to the extent it had formerly done, which was greatly desired by its Direc tors, and so much needed by the community whilst this want of confidence continues and notes put in circulation in any part o he State shall be at once returned by some banker or broker for payment, it must be pparent to every one, that but little business be done other than collecting their debt nd redeeming their notes, and that he profits of the bank must be greatly reduced. Many of the evils to which the State has subjected from a want of uniformity nd regularity in its paper circulation have rown out of the unwise organization of the hree old banks, and the competition in busi ess and for public favor which necessarily esult from it. When it was ascertained that the United States Bank could not be re-chartered, i vas apprehended that there would be a de ciency of paper circulation, and the Union Bank was chartered to supply its place, and State became a partner, subscribing half million of dollars; complaints soon atose
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Sin-I herewith transmit a statement of the condition of the Bank of Tennessee and Branches on the 1st July, in compliance with the acts of the General Assembly. The statement exhibits such a reduction of the business and profits of the Bank, when compared with the preceding years, as to make it my duty to give some explanation of the causes producing such results, and to correct erroneous impressions made upon the publicmind as to itscondition and mapagement. Thesuspension of specie payments was ordered, after a consultation with the officers of the Union and Planters' Banks, and other leading business of the city. It wasagreed, without a dissenting voice, that the interests of the people, as well as the Banks, required it to be done. The Planters' and Union Banks were then invited to unite with this Bank in an address to the public, explaining the necessity and propriety of the act. Thiswas declined, as was then supposed, under a hope that in following the Bank of Tenuessee, their conduct would be more readily excussd by the public, and their chances for a re-charter bepromoted. The Directors of the Bank of Tennessee having been convinced thatsuch a course was necessary and proper in the embarrassed condition of the country, ordered the suspension on the next day after the consultation with the other Banks-they followed in a short time after. This act on-the part of the Bank was violently assailed in some of the leading public journals, thereby creating alarm in the public mind, exciting apprehension for the safety of the Banks, and adding to the embarrassments then existing in the business and trade of the country. The General Assembly then in session, passed laws imposing newburthens and restrictions upon the Sanks, and severe penal ties, forfeiture of charter, for the violation of any of them and required their acceptance by the Banks as part of their charterswithin a limited time. Whilst thus condemning the course pursued by them, they refused to coerce the Banks to a resumption of specie payment earlier than the 1st of November, that they and their debtors might have the benefits which would arise from the sale of their crops during the fall. The Bank of Tennessee accepted the new obligations and restrictions imposed upon the Banks,a a part of its charter, and became liable tothe penalties for the violation of any of them. In accordance with the policy of the General Assembly its debtors were favored by a renewal of their notes and bills, in such cases asseemed to requireit-by keeping up its line of discounts, by maintaining its usual circulation, and by refusing to sell its exchange at a higher before the suspension, and redueing the price to one-half per cent early in the year. Thusafford ing every aid in its power, consistent with its own safety, to en able the community to get over the embarrassment in the trade of the country, and the derangement of its currency from the suspension of the Banks. The Union and Planters' Bank, declined accepting the restrictionsas parts their charters, and determined to resume on the 1st of July, four months in advance of the time indicated by the General Assembly, and invited the Bank of Tennessee to unite with them in so doing. In the event of those Banks refusing to accept, the General Assembly directed that the resumption of specie payments by the Bank of Tennessee should be left to the discretion of its Directors to avoid giving those Banks any advantages over the Bank of Tennessee, the latter being compelled so to adjust its business as to comply with the Legislative restrictions, whilst the others claimed exemption from them. The question they left to the Directors involved other and more important considerations than the abilliy of the Bank to do SO Its ability to do $0 at any time was known to the Directors. Re sumption at the time proposed would necessarily affect every in terestand every section of the State, and it was therefore deemed important to get all the information that could be had as to it operation. The mode prescribed in the charter was adopted and a convention of the Branch Presidents was called for its consider ation, as well as for the regulation of the future policy of the Bank. The Convention met early in June. The question was fully and carefully considered, and the convention came to the con clusion that the resumption at the time proposed would necessaril; require a more speedy collection of their debts by all the Banks and thus add to,rather than diminish the pressure existing in th money market-that it would lead to a still further curtailmen t of the currency medium of the State-that it would impain some extent the ability of Banks to furnish the usual accommo dations for the shipment of the products of the State to thei proper markets-that the General Assembly had indicated th proper time for resumption, and the Bank ought to adopt it, a best calculated to promote the interests of the people as well a the Banks. The other Banks taking a different view of the sul Ject, resumed on the 1st of July. This produced a new difficulty between the Banks as to the proper mode of setting their daily balances-the Planters' Ban insisting upon the redemption of the Branch Notes in gold, or if equivalent in Nashville, which could not be acceded to, as it wa not paying gold to the citizens generally; and the gold for th payment of the Branch notes was in the vaults of the Branche and not un ler the control of the mother Bank, and because suc a course would require the gold and silver of the Branches to 1 concentrated in the principal Bank at Nashville, contrary the policy of the General Assembly in placeing the Branches i different sections of the State f r the convenience of the peopl Thesequestions, whilst unsettled, produced derangement in tl business of the country for some weeks, as well as bitter denu clations of the Bank of Tennessee by the opposing inrerests the State as well as some of the leading newspapers, and, induce the Planters' Bank to reject the Branch notes of the Bank Tennessee for a time. The Directors were soon convinced that with such daily attac on the Bank and 80 much discredit cast upon its paper, but li tle could be done for the relief of the community by discounts otherwise, ascontemplated by the Convention, and in July a vised the Branches, notwithstanding the decision of the Conve tion, to resume specie payments, as they had ample means to ( 80, and it was done early in August under the belief and ho that more accommodations could be granted in that way th: continuing in astate of suspension until November. The resumption of specie payments and the settlement of t controversy, as to daily payment of balances did not, however silence the clamor againstthe Bank of Tennessee.
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Such unusual demands upon the Bank, for such large sums dur- ing those months, with the published and oft repeated prediction that the Bank would again suspend on the 1st of November, ad- monished its officers to be prepared for a still more vigorous at- tack after that time. They did prepare for it, and on the first twelve days of the month The Union Bank demanded and was paid...$239,500 The Planters' Bank demanded and was paid... 2-5,000 making the whole amount paid those two Banks alone near one and one-half millions of dollars. The hope of bringing discredit on the Bank seems to have been given up after that time, and the balances settled without in- convenience to either. It is confidently believed, if every note of the Bank had been presented and payment demanded, that it would have been paid. Much credit is due to the officers of the Branches for their zeal and energy in sustaining the Mother Bank. As soon as advised of the press made upon it for the redemption of their notes, they sent the gold from their own vaults which they were not required to do by law, in such sums as was necessary to meet the demand. It can scarcely be believed that, in the ordinary course of busi- ness, such balances, in about equal sums between the two, could have arisen—whilst it is not supposed that the officers controlling them resorted to any unusual or unfair means, to get possession of its notes for any purpose prejudicial to the Bank, yet it can be scarcely doubted that by some concerted movement, the notes of the Bank were gathered up in different portions of the State by those unfriendly to the institution, and payment demanded at Nashville through the Union and Planters' Banks, under the hope of bringing discredit on the Bank. Notes of the Branches from their respective neighborhoods, where the gold was ready for their payment, were sent to Nashville for redemption, to swell the current directed against the Bank, and subject it, if possible, to the penalties of the new laws. The President and Directors knowing their obligations to obey the laws, and brought in compe- tition with those claiming exemption by virtue of their chartered right, from the restrictions imposed upon it, and their ample means for its annoyance and injury, and seeing the hostility to- ward it prevailing, in the different sections of the State, and the settled determination to destroy its credit and to subject it, if pos- sible, to the penalties of the late laws, felt it their duty to re- strict the business of the Bank so as to keep it safe beyond doubt, and disappoint its assailants by whatever motives actuated. In consequence of these continued attacks upon the Bank, the discounts have been reduced during the first year over half a mil- lion of dollars—its circulation curtailed between seven and eight hundred thousand dollars, and its profits reduced near one half of those of the preceding year, yet still exceeding 6 per cent nett on its capital. The statement shows the Bank, at this time, to have ample cash means to meet every immediate liability "whenever and wherever demanded;" to restore the stock originally invested in it, which is believed to be now as safe as on the day of its in- vestment, and a surplus of assets of more than a million of dol- lars for the future disposition of the General Assembly. The Bank of Tennessee has been in operation twenty years and during that time, after the payment of all expenses, has made for the State the nett sum of four millions five hundred and eighty- four thousand dollars. Of that amount, the sum of one million five hundred and sixty-eight thousand dollars has been made with- in the last five and a half years, under the control of the pres- ent Board of Directors. It is confidently believed it may be made to yield to the State between four and five hundred thousand dollars, if placed upon a footing of equality with the other Banks in the State, and allow- ed the rights and privileges granted to them. Respectfully your obd't servant, C. JOHNSON, President.
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The portions of the School Fund heretofore apportioned amongst the Branches have been transferred to the mother Bank, and 08 lieu us paggides Branches the that their books in future will exhibit their entire capital 08 cash. The hole School Fund in the Bank amounts to 1,120,589 14. The report states that a comparison of the statements accompanying it, with those of preceding years, show a large reducJO SB 11em SB business the u! uo! the Institution. The profits for the year ending on the 1st of July, 1859, compared with those of the preceding year, " show an actual loss to the State of 954 63." A considerable portion of the Report is occupied with an explanation of the causes of this unfortunate state of things. The last Legislature enacted laws imposing restrictions upon the Banks andrequiring them to resume the payment of specie on the 1st of November, 1858. The Bank of Tennessee accepted these restrictions-the Union and Planters' Banks did not. The Bank of Tennessee determined upon a line of policy which would enable her to accommodate the people, and resume at the time re quired by law. The Union and Planters' Banks resolved to re*ume on the 1st of July, and invited the Bank of Tennessee to join them. The invitation was submitted to a convention of the Presidents of the Bank and Branches and -p= 01 better SB papreded being 1! declined here to the policy already adopted From this moment, the Bank of Tennessee was denounced as unsound, and the denunciations were kept so vigorously as to prevent her from carrying out her line of policy and re sumption was determined upon, and carried into effect. Notwithstanding this, the clamor against the Bank was continued. The settling of balaaces between her and the old banks was made the occasion of drawing from her from the 1st of July to the 12th of u! 88 $1313116 Jo uns the Noverber specie. The President thinks the heavy demands made upon her for specie were the result of a determination to force her into a second suspension.and consequent forfeiture of charter. He does not, however, doubt the statement of the officers of the old banks that no unusual and unfair means were resorted ill uodn spusmed such buing 01 used hq 01 The effect of these demands was to cause a beavy reduction of the discounts of the Bank, and of the profits to the sum mentioned above, in one year. Another effect was the injury done to the credit of the State in the depreciation abroad of the price of State Bonds. The Report recommends again the adoption of amendments of the charter of Bank '91 which 10 Tears OM1 the placing of the branches under the control of the mother bank; and another, to authorize the courts, upon certificate of the defalcation of any debtor. to issue an execution for 88 anp Aquour em Jo Supper eq: in cases of money of minors loaned by masters in Chancery. A repeal of article 1814 in the Code establishing the counter note system is recommended. The act of January 28, Section 7, prohibits the banks from paying out any notes but 18" which am 10 'UMO their sued or paid out; but to avoid the evil effects -ne 'passed SUM 108 us 'sign jo thorizing the banks which should accept the restrictions of the former act. to receive and pay out the notes of the Bank of Tennessee and branches. The act of January was incorporated in the Code, whilst the subsequent modification was not. This oversight has de prived the Bank of Tennessee of important advantages, and entailed upon her serious evils. The Report states them as followsBy these provisions, the Bank and its -fud notes uno my mo had S|uo 083 branches able at the counter, whilst by other laws, they are compelled to receive in pay ment of debts the notes of each other; and cannot, with a proper regard for their credit, refuse to recerve them on deposit. The notes of the branches in the course of trade and business, will necessarily concentrade at the principal points of business. Thousands of dollars of the branch notes are daily paid to the Bank in Nashville, and cannot be used for any purpose until sent to the branches payable. the gold obtained and brought back-so with each of the branches- thus incurring heavy additional expenses, besides the hazard of transmitting the gold from one to the other. The Bank before the middle of September. found itself in possession of more than half a million of its branch notes and yet unable to discount area ITEMS 811 aog Jellop . in circulation and could not be had for immediate use. New notes based upon the currency of the branches could not be safely isseq dued em to business em benee puu :pans been in a great degree suspended since the 1st of September. The same thing occurs with every branch; their circulation is gener siqap em :apdood am jo spusy em u! "11" collected often the notes of the other branch-qo eq meo p108 I!!!!! pasn eq cannot pue tained for them. The Report regards the restrictions as improper for Banks with branches over which they have no contr ol, and says their operation upon the Bank of Tennessee .. has been Bing of 'yses pup ware sp in ''' pduces 02 gold from the Branches to Nashville for the benefit of Brokers and other Banks." The notes of the Bank under five dollars, 18mg SU completed may ммирфцим been earq as possible and destroyed but their place has been supplied with small notes of the banks of other States. It is apprehended that after the 1st of January next, when no em 'panse! en 01 Pollars Jepun seles are Indoss amos unless 'ousua 11!" result surve taken by the Legislature to prevent it. -ap em eq II"9" " II up s! II termination of the General Assembly to continue banking as it has done for. the last action puu asim uses pinom 11 Years' them am 10 control exclusive the amasse 01 " Jos eqs su DOOR SB State am "II pasn Senous paded same can be done consistently with the char-
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-08 JO classes II" 03 pus Surmary ciety. A few facts will better illustrate my meanBranch the Jo euo Suy phis, found, that for soine time previous to the date of my examination, the Bank had discounted cotton Bills to the extent of about two hundred and thirty thousand dol'ars per week. The Bills taken, were based upon actual shipments of cotton bough at fair rates,drawn by first class men at home,accept ed by first class houses in New Orleans, having but thirty days to run, and yet such was the conditon of things that the Bank, thus furnishing the local currency with which to pay for the cotton at Memas piscount Jo out siq1 dots 01 had 'sryd whole, and why We will see by following the basis of this operation (the eotton) to another mar ket. When it arrived at New Orleans the Memphis buyer placed it upon the market, and his purchaser buying mostly for foreign markets, must obtain the local currency at New Orleans with which to pay for by selling to the New Orleans Banks his sterling bills, drawn upon credits furnished him by bis foreign correspondent. New Orleans having but little foreign trade, unless these sterling bills find buyers in New York, st 4! ano jo focus Breat )the manifestly impossible for the New Orleans Banks to furnish the local currency with which to pay the Memphis buyer for his cotton. The fact is well known that there is now no market in New York for Sterling Bills, except at ruinous rates. The par quesand : 1601 believe "st Sugars Jo selling rate at New York is about 98, an actual discount of 11 per cent, when it only requires about one per cent to bring the coin from Europe to New York. 8 rate of discount so ruinous that operators can not and will not stand it. Thus the Memphis buyer can not meet his bills, and must renew or go to protest, and the Bank furnishing the local currency 04 usang 81 home 18 pind 81 planter the which protect its circulation to use the gold in its vaults and wait the uncertain result of the original drawer's operation for 8 replenishment of the metal thus abstracted. Manifestly no Bank can keep out and protect a circulation with the stream of metal thus -ast euou pus 61! 10 no while the II" Surmoy turning. If, however, the depressing influences PIP country am jo орвл the uodn operature Mou not exist, the Memphis buyer would find & purchaser in New Orleans, the New Orleans buyer would find a sale for his sterling exchange with which to pay. And with acredit, in the Banks of New Orleans, equal to the amount of circulation to purchase the cotton at Memphis, in favor of the Memphis Bank, (which could be ordered home in gold to replace that used to protect the circulation used in the first 02[1] 01 condition u! 09 mede pinom # ('esupand other bills and furnish the buyer with home cur rency with which to pay the planter for his cotton. Thus would be produced an equilibrium in the 04 Surme and appli metal the Jo Moy put qqa the disturbing causes above referred to, there is damming up of the commercial stream at New York, the reflex action of which is R total destruction of public confidence, or more preperly speaking, of public credit, driving home the notes of the Banks -sip II" dois 01 Banks the canaling Joj onp money am collect 01 them Subject puv country them upon notes and bills previously discounted. This again causes the debtor class to push their creditors, all resulting under forced sales, to a loss hhe u! Superous Maadead 10 en ut pood auo jo Anjua the uuq: JOJE " was 01 mus st country on when time ' 1" 001 sin pus 'do.ro pasodum the Jopun sdore successive chice u! Failure particl B jo The article of cotton IS taken simply for the sake of illustration; the same facts obtain with reference -qo eq II!M 41 mmg one 10 other the that served, however, that in every case the loss falls on the producer. The buyer, having to sustain a loss of eleven per cent on his sterling exchange in order to obtain the local currency with which to purрлода only use pus Anq counse Jo 111 chase -as paid jo B 111 Ang 01 duced. Thus, I again repeat, the loss falls on the labor of the count.y and the products of this labor being the true basis of all pecuniary prosperity, a depressed pecuniary condition must follow in exact atio with the depression of the great industrial basis. There is still another cause, deducible. it is true, from those already given. but which esteem wor thy of especial notice. By reference to the Bank Code, sec on 6th, it will be seen that each and every UB has uo dear 04 ST State am u! Bank -ua #11 jo print euo 01 June punj speate Jo junome tire liabilities. It is further provided that in case this specie fund shall fall short of this proportion, until for forty days, then all discounts shall cease such proportion is restored. The Bank of Tennesand the Union and Planters' Banks had, on the specie jo millings OMT "staquinu puno. u! aas 181 funds, and their immediate liabilities, in deposits and circulation, were five millions of dollars. From this it will be seen that they were entitled to an increased circulation, had the country been in condition to receive it, of one million of dollars. But peperits 10 pursnoqi ag asoddns and circulati were returned to the Banks for specie and specie funds. Then the Banks would hold one and a half millions of specie and specie funds. 4q susodep pur checkstic a! amount per anoj 01 eq 01 DAVE Decessarily plnom MIL and a half millions. For every dollar thus returned to the Bank for redemption, the Bank would be compelled, in order to keep in line, to collect three dolcreditors 811 ano.y 8.18] You are doubtless aware that all of the Banks of the State, except the Bank of Tennessee, Union Bank, Planters Bank. Shelbyvllle Bank, and the Bank of Middle Ternesse, at Lebanon, deny my # THIS punoas am nodn them 01 is an infringment of their vested rights. I mention tihs fact to account to you for my failure to except Banks and Jo AUB jo condition the 01 refer those above enumerated. Of the condition of such informa- other ou have I op1st Ranks tion than their published statements, and these facts being equally in your possession, respectfully re11 fer you to them for information as to their condition, expressly disclaiming, however, the knowledge Jo euo Aug Jo the 07 Sujos the Aue JO them. The following statements of the condition of the Bank of Tennessee, the Union Bank, the Planters' Blank, the Shelbyville Bank, and the Bank of Midd lle Tennessee, regard as perfectly reliable, having to great extent verified them by actual personal Condition of examination the Bank of Tennessee and Branches, Nash 0981 'I 'ma 'SNV2K 28 E06'098'1$ Discounted Not.s #1118 of 806'866'1 Bills Domestic and Notes Suit 1-08'991 State Bonds Discounted School Land Notes OF ERD'940'S Real Estate 13 L6 266'116 from Banks out of the State 113 61 815'51 ams eus at Banks most and on( Branch Interest paid on Balances State Bonds ZIA
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SUSPENSION OF THE BANKS AT NASHVILLE. NASHVILLE, Nov. 26.-At the urgetit request of the business community, the Bank of Tennessee, the Planters and Union Banks stispended specie payment to-day.
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SUBPENSION IN TENNESSEE.- On the 26th the Bank of Tennessee, the Planters' and Union Banks, all located at Nashville, suspended specie payments-at the general and expressed desire of the community, the telegraph says.
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TENNESSEE LEGISLATURE. EXTRA SESSION. SENATE. MONDAY, Jan. 14, 1861. Mr. Speaker Newman read a communication from the Officers of the three old Banks, in answer to S-nate resolution calling for information as to the amount of accommodations they could afford the people if their suspensions were legalized. On motion of Mr. Richardson the communication was referred to the special Finance Committee. Mr. Bradford offered a resolution to appoint a committee, to prepare, in connection with a similar committee of the House, an address on our Federal relations. Mr. Bradford a resolution on the subject oi non-intervention with the North. Mr. Bradford a resolution asking the General Government to prevent any movement of the army and navy that may be calculated to lead to a collision between any of the States and the Federal Government. Mr. Speaker Newman a resolution on the subject of a Convention of the Southern States at Richmond. These resolutions lie over one day under the rule. The Bill to give the Banks further time to resume specie payments was called up.on third reading. Mr. Lane moved that the Bill be amended so as to allow the Bank of Tennessee to issue bills of the denominations of oue, two and three dollars. The amendment was adopted, and the Bill passed third and last reading. Mr. Wood asked leave to withdraw the Bill for amendment. On motion of Mr. Stokes the vote passing the Bill was reconsidered, and the Bill was withdrawn for amendment. Mr. Payne, from the Committee on Federal Relations, read a majority report, sub. mitting a series of resolutions and recommending their adoption in lieu of Senate resolutions No. 4. On motion of Mr. Payne, the report was made the special order for Wednesday at 10 o clock, A. M. On motion of Mr. Horne 75 copies were ordered to be printed. The Bill to give the Banks further time to resume specie payments was called up, with Mr. Wood's amendment, requiring Magistrates and other officers to issue DO execution until they have first received a written obligation from the plaintiff to receive payment in current bank bills, and the amendment having been rejected by a vote of 18 to 5. the bill passed third and last reading. by a vote of 20 to 4, upon its reconsideration, and was ordered to be transmitted to the House. House Bill No. 3, calling a State Convention, was taken up and passed first reading. On motion of Mr. Payne, the vote making Senate Bill calling State Convention the special order for to-day was reconsidered. Mr. Payne submitted a Bill to incorporate the Memphis Light Dragoon Company. Raferred to Joint Select Committee on Military Affairs. Mr. Peters offered a Bill to organize a Vol unteer corps of 15,000 men. Passed first reading and referred to Committee on Military Affairs. On motion of Mr. Trimble, the Senate adjourned till to morrow morning at 10 o'clock.
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DEATH BY DROWNING.-On Sunday last several boys being upon Shockolog Pond, in Copley, sliding and skating. Norman Bosworth, aged about 15 years, a son of Delos Bosworth, Esq., broke through the ice and was drowned.-Alron Beacon. The debt of Aleghany county, Pa., including Pittsburgh and Alleghany City, is nearly seven million, seven hundred thousand dollars, and the value of the tax able property is but twenty-eight millions. BANK SUSPENSION.-The Northern Bank of Kentucky, at Louisville, and the Citizens, Exchange, Merchants, and Manufacturers, of Pittsburgh, and Allegheny Banks, have suspended specie payments. The Lake Officers resident in Buffalo are moving to organize an Independent Naval Corps, to be about 300 strong, and the seamen of Oswego are organizing a Naval School in that city. The Ohio State Board of Agriculture will hold its annual session at Columbus on the 8th of January. The Sorghum State Convention will be held at Columbus the day previous. THE STATE BANK.-The State Journal says that at a meeting of the Board of Control of the State Bank of Ohio held on Friday, it was resolved not to suspend specie payment. The French transport ship, the Resource, bound to Callao, 40 miles south foundered of Valparaiso. She had over 600 souls on board 'only 5 or 6 of whom were saved. Mrs. L. Udell, of Freedom, Portage Co., was SO badly burned by her clothes accidentally taking fire on Friday, that her life is despaired of. A wedding occured at a church in Boston, at which the bride appeared in white, and the two bridesmaids respectively in red and blue. The Bank of Tennessee, at Nashville, is issuing notes from one dollar do wn to five cents! Themas Francis Meagher has been appointed a Brigadier General.