20874. Bank of Nashville (Nashville, TN)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: September 28, 1857
Location: Nashville, Tennessee (36.166, -86.784)

Metadata

Model: gpt-5-mini
Short Digest: a138825c

Response Measures

Full suspension

Description

Contemporary dispatches (Sept. 28–30, 1857) report prejudicial/unfounded rumors causing heavy withdrawals, the bank's suspension of specie payments and an 'assignment' of effects (i.e., failure/closure). Sequence: run (withdrawals) → suspension → assignment/closure. Bank type inferred as a state/stock bank (pre-national-bank era).

Events (4)

1. September 28, 1857 Run

Cause: Rumor Or Misinformation
Cause Details: Prejudicial and unfounded reports about the bank's solvency triggered large withdrawals and heavy demand for coin.
Measures: Bank announced suspension of specie payments and requested depositors take no action for a few days.
Newspaper Excerpt: In consequence of prejudicial and unfounded reports relative to the solvency of this Bank, causing a large number of depositors to withdraw their funds, besides a heavy demand for coin, we have been forced to suspend payments for the present.
Source: newspapers

2. September 28, 1857 Suspension

Cause: Rumor Or Misinformation
Cause Details: Suspension ordered after runs driven by prejudicial and unfounded reports about solvency; board suspended specie payments.
Newspaper Excerpt: we have been forced to suspend payments for the present. N. HOBSON, President ... To place Creditors of the Bank of Nashville be-
Source: newspapers

3. September 29, 1857 Other

Newspaper Excerpt: Intelligence has reached Louisville, Kentucky, that the Bank of Nashville has failed, and made an assignment. The brokers of Louisville now refuse all issues of the Tennessee Banks.
Source: newspapers

4. September 29, 1857 Receivership

Newspaper Excerpt: The Bank of Nashville suspended on Monday last, and made an assignment of its effects.
Source: newspapers

Newspaper Articles (24)

1. September 29, 1857 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, September 29, 1857

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Nashville, by its last semi-annual report in July last, showed that it was doing a business of upwards of eight hundred thousand dollars, on a paid in stock capital of one hundred thousand dollars, it exhibited assets amply sufficient to meet its liabilities, including one hundred thousand dollars of undivided profits, accruing within the previous six months. If this statement were truthful-and we have no reason to doubt it, as it was made under the oath of the Cashier-we cannot weil see how it could, so soon, have passed into a hopeless state of insolvency. Its deposites, at the same date, however, from individuals, amounted to a little more than four hundred and twenty thousand dollars, more than half its entire liabilities. While this fact shows in what repute the bank stood, it also shows, how easy it could be overslanghed, by a simultaneous run on the part of the depositors. And this might be done, while the bank maintained its gen eral solvency. We presume, if the condition of the bank, was not rapidly and unaccountably changed, between the first of July and its suspension, yesterday morning, this is the true explanation of its difficulties. If this is true, and indeed whatever may be the true explanation, we think the officers of the bank owe it to the public to make an exhibit of its affairs, at the earliest practicable moment, in order that the community, both at home and abroad may be relieved of the anxiety and suspense, which the event naturally engenders. As a matter of course, the sufferers, if there are any by this failure, will be the depositors. The note-holders of the bank, will doubtless be secure, by the indemnity, in the shape of Bonds, deposited with the State Comptroller-and we should say there was no reason or necessity for the note-holder's submitting to any great sacrifice. For them, the Comptroller stands in the place of a Trustee, and is bound by law, to dispose of the bonds for their benefit. But the suspension of the Bank ef Nashville, whatever may be its condition, will not affect only its creditors. We very much fear that it will prove the inception of a panic which it will be difficult for our staunchest banks to withstand, and which will seriously involve the business of the whole State. The immediate effect in this city, has been to discredit most of the banks of the State. The Bank of Tennessee, yesterday, threw out the notes of all banks not redeemable directly or by agencies, in this city; and we learn that pretty much the same course was pursued by the Union and Planter's Banks. The circulation here, will of necessity, be reduced to currency bankable here. And if the panic extends to the verge thus indicated, and discredit, or even suspicion, is thrown upon all other banks, the consequence may prove truly disastrous. There appears to us but one remedy, and that is for the people to sustain their currency. We are persuaded that all the noteholders of the free banks are secure; and if the depositors will but allow them time to col lect their assets, all will probably be well. And so it may be with many of the stock banks. Money is, undoubtedly, as plenty in the city and State to-day as it was any day last week, and if the proper course is pursued, and the wild and too often fatal spirit of fear and distrust, be repressed, we believe there is as little real cause of alarm, as there has been at any time heretofore. We learn that a meeting of the Merchants of Nashville, was called yesterday, and that they recommended, to all the banks in the city to suspend specie payments, for the time being. We we are not just now prepared, nor have we the time, to speak of the propriety or policy of such a course, at the present moment. We should certainly hope there was no occasion for fear and distrust so general as this would indicate. BANK OF Nashville, Sept. 28, 1857. In consequence of prejudicial and unfounded reports relative to the solvency of this Bank, causing a large number of depositors to withdraw their funds, besides a heavy demand for coin, we have been forced to suspend payments for the present. We beg of our friends to take DO action in the matter for a few days until we have had time for reflection as to the besicourse to be pursued. Our assets are ample to pay all liabilities, and they shall be faithfully applied. N. HOBSON, President 33 W. WHELESS, Cashier. To place Creditors of the Bank of Nashville be-

2. September 30, 1857 Daily Iowa State Democrat Davenport, IA

Article from Daily Iowa State Democrat, September 30, 1857

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LATEST N E W S. Financial Matters. Washington, Sept. 28. A notice posted on the bank of the Me tropolis may the panic created by suspension of other bankshaving caused much lar. ger demand for species than as anticipated that institution is under the painful necessity of suspending specie payment for the present. The trustees remark that they will make every exertion to resume. The bank paid out 865,000 on Saturday. The Bank of Washington and Patriotic Bank, which paid only small sums on Sat urday, *have now a'together suspended.The savings Bank pay either in City Banks or in Va. money, and demand the six days notice from depositors. Va. money is at a discount of 5 per et., and the tendency is still downward. Business is nearly paralvzed, and uncurrent money unsaleable Boston, Sept. 28. Mesar- Jewell & Co. publisher-, of this city, have suspended Their liabilities are $100,000. Alexandr Va. 28. The banks here are paying out small sums of peele only. Philadelphia, Sept. 28. There is still no concert of action among the banks. They commenced paying 83 bills. but 11 P. M. the North American Bank which previously redeemed all notes, sus pended specie pa ments, and the same course will now in time universal. The Philadelphia Bank suspended specie pay ments, but redeemed checks with notes of other banks following this course, Cincinnati, Sept. 28. Exitement consequent upon continued unfavorable advices from the East. paraland attention of business men i- entirely turned from the ordinary routine to the all aborting question of the latest newsfrom the East. Banking Houses contimeto quote N. Y. Exchange at par, but only small sums can be purchased at this rate. Sumas of 85,000 and upwards cannot be bought at less than 5 per cent. premium. No paper can be negotiated, SO that it is useless logive quotations. The paper of an iron and a shoe and leather house went to protest. and B. Holms manufacturer, has made an assignment: not one of them. however, are insolvent. J. .I. Anderson & Co. and Darely & Banksdale, Bankets. of St Louis, have suspended.Nashville Bank of Nashville, Tenn. has alsuspended. New York, Sept. 28. Rumored failure of Clark, Dodge & Co. and Phelps, Dudge& Co., are entirely un true Exchange on Philadelphia 10 per cent.i Rates for money on the street, in some cases six per cent. per month. Assignment of the Ohio Trust Co. is un f expected. President Stetson returns to it Cineinnati to morrow. to procure a stay of 'n proceedings il The Metropolitan, Republic, Merchants bank of N. Y. Mechanic, American, Ex change. Union, and Phonix banks. have isd sued circulars, assuring the public of their 11 ability and determination to maintain as specie basis for their circuiation, and ex press the opinion that the tendency of spc . ere and produce to this point. will 3001 es relieve the banks of the present pressure. lie Norfolk Sept. 28. he Some feeling is manifested here about the in Baltimore and Philadelphia suspensions, but 11" the banks so far have remained firm. Richmond. Va. Sept. 28. The banks paying out specie, and led is generally believed that they have deter 11 mined to go on. There i- no run as yet are Both the Stanton Banks, the Central an the Bank of the Valley have suspended. est Philadelphia, Sept. 28. The Governor has not decided betwee Banks, and there is pressure for and agains calling a =pecial session. es Boston, Sept. 28. the The Suffolk Bank refuses to redeem bil to of New England country.

3. September 30, 1857 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, September 30, 1857

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PRICE ONE CENT. eboral discount have had to be endured. As thing, the banks are evidencing a CO1 nmend le degree of unanimity in endeavoring to mitigate the adverse influence of the suspension. Nearly, if not all the banks paid out specie yesterday in small sums, when the wants of the applica nt were known to be urgent and made in good faith. SUBTENSIONS AT ST. LOUIS. Dailey & Barksdale and J. J. Anderson & Co., of St. Louis, suspended Monday morning. Both firms are extensive bankers. Mr. Anderson is also owner of the Bank of St. Louis, recently estriblished under the new banking law. He is understood also to have been principal owner of the Rhode Island Central Bank, recer tly failed. These failures produced a great flutte. ing, having been totally unexpected. There is much excitement also in the city and state of Missouri, in consequence of the bank suspensions at Phila lelphia and Baltimore. FAILURE OF A TENNESSE E BANK-EXCITEMENT AT LOUISVILLE. Intelligence has re ached Louisville, Kentucky, that the Bank of Nashville has failed, and made an assignment. The brokers of Louis ville now refuse all issues of the Tennessee Banks. There is great excitement in financial circles in consequence of the recent developments, and the curre ncy market is in a state of utter confusion. The notes of the old State banks of Missouri command a premium here of one per cent. SUSPENSION OF THE RHODE ISLAND BANKS. It is learned that all the Rhode Island banks have suspended specie payments. PROVIDENCE, Sept. 28.-The following are the names of the banks of this city which suspended to-day: The Arcade, American, Atlantic, Bank of America, Bank of Commerce, Atlas Bank, Bank of North America, Bank of the Republic, Blackstone Canal Bank, Butchers' and Drovers' Bank, City Bank, Commercial, Continental, Eagle, Exchange, Globe, High Street, Jackson, Liberty, Lime Rock, Marine, Manufacturers', Mechanics', Mechanics' and Manufacturers', Mercantile, Merchants', Mount Vernon, National, Northern, Pawtucket, Phenix, Providence, Roger Williams, Traders', Union, Westminister and What Cheer and Weybosset Banks. All the other banks in the State are reported as having followed the example and suspended. Their liabilities to the public are not over a quarter of their capital.

4. September 30, 1857 Smyrna Times Smyrna, DE

Article from Smyrna Times, September 30, 1857

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THE MONEY Chisis-Latest News.-The latest accounts represent no improvement] in monetary affairs. In Piniladelphia money is selling at from 5 to 10 per cent discount.-Business of all kinds, distressingly dull. New Jersey money IS at tive per cent discount. Ii IS rumored that several New Jersey banks, owned in Philadelphia, have failed All the Banks in Rhode Island have suspended. A heavy run has been made on the Savings Banks in all the cities. The Herald says the money market in New York is in a perfect chaos. Money bring. any value holders have a mind to put upon it. A despatch tro 11 Cincinnatti says the advices from the East paralizes business. The Banks at Baltimore and Washington have suspended payment There is but little excitement south of these cities. The Bank of Nashville, (Ten.) has failed.The Brokers refuse the notes on all the banks in the State. Governor Pollock has issued a Proclamation calling an Extra Session of the Legislature to meet at Harrisburg, on Monday, the 6th of October. The Banks of Delaware, Maryland. and Pennsylvania, have all suspended payment. The New York, Boston, and New England Banks generally, had not suspended.

5. September 30, 1857 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, September 30, 1857

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Also, the following by Edward H Ludlow Co. 97 4.400 New-York City Peent Bonds payable 142 60 shares Bowing Fire Insurance Co. Fire Insurance *barea Powery shares Bowery Fire Inearsuse Co. shares Bowerv Fire Insurance shares chanies' and Traders' Bank have chances and Traders' Bank 1001 shares Atna Fire Insurance 101 180 shares Relief Fire Insurance Co 16 shares Union Coal and Iron Co., 84 shere Bank of Commerce..... 109) 20 shares Excellion Fire Insurance Co The advices from the East continue to be encour. aging. The suspension at present appears to have stopped with the Rhode Island Banks. The Suffolk Bank at Boston telegraphs that New England and Boston stand firm. The Banks of Boston, we hear by private letters, intend to expand their loans to the extent of three millions. A private dispatch from Louisville states that Kentucky will pay as long as New-York does. Matter are becoming more quiet in Philadelphia, and business is going on 88 usual. In Wall street there is but little charge. Most of the dealers in domestic Exchange are doing nothing. The bills of the Honeadale Bank of Penneylvania are still redeemed by Messrs. Carpenter & Vermilye of this city. The new Directors of the Michigan Southern road W ill meet on Thursday and organize. Dispatches received last evening announce the suspension of J. B. Holmes, a large manufacturer of Cincinnati, and of Derley & Barkedale, and John J. Anderson & Co., of St. Louis. The Shoe and Leather Bank has declared a semiannual dividend of 4 e cent, payable October 13. The Chemical Bark has declared a semi-annual dividend of 6 P cent. The Directors of the Rock Island Railroad have a meeting to morrow. The assignees of the Ohio Life and Trust Company are Charles Stetson, John C. Wright, Samuel Fosdick, Samuel J. Broadwell, Abraham M. Taylor, George Crawford and Clement Dietrich. With one exception they have been taken from the Board of Trustees, and in fact the assets of the company will be in the same bar as before. The Philadelphia Banks have decided upon the foilowing measures: 1. A suspension of specie payments on all notes, large and small. 2. The prompt issue of their own notes of the smaller denominations, for checks and all other obligations against them. 3. increase of discount to their customers, with the object or affording immediate relief. The Bank of Pennsylvania goes on with the rest, and ail are issuing their bills again. by arrangement with the Governor. Great demand existed for NewYork funds, and the rate was advancing. An issue of small notes by the Banks is E so spoken of in some of the papers. ID Louisville the suspension and assignment of the Bark of Nashville created great excitement. The brokers at once refused all the issues of the Tennessee Banks The Cincinnati Commercial says that the business of the Ohio and Mississippi Railroad was very large in August, much exceeding that of any previous month since the opening of the road. The freight and passenger business of the Pennsylvania Railroad, and also that of the Pittsburgh, Fort Wayne and Chicago Railroad, is reported very active by the Pitteburgh papers. On Thursday last one train of cars, double floor. loaded with sheep, was dispatched from Philadelphia. Other live stock also go liberally forward. The State Bank at New-Brunswick have decided to increase their capital stock by the payment of an installment of .25 t cent thereon, We learn from S.U official source the following particulars of the liabilities and assets of the Soath County Bank: 159,220 Total circulation outstanding $3,800 In the hands of the Merchants' Bank of Providence $ $115,420 In the hands of the public 157,000 Due from Rhode Islanc debtors of which about * 100,000 from John Thompson, late Presi dent of the Bank, for his own account. and by indorsements for Hallett et al, for which indorsements Mr. Thompson holds stocks pledged to him security for nearly of quite three to one The balance of from $50,000 to $60,000 iN ungnestion ably good. The other debts are due from Western men. and the Bank holds mortgages upon real estate, it is believed, amply securing $57,000. The bank also holds the following stocks as collateloans: for ral, $ $10,000 Mortgage Bond Beloit and Madison R R 16,000 First Mtge. Bonds Racine and Mississippi R. 5,000 Farm Mtge Bonds Racine and Mississippi R. 3,125 First Mtze. Bds Chicago, St. Paul and Fondulac R. R 25,100 Stock Raci ine and Mississippi R. 11,000 Iowa Land Company 2,000 Illinois and Michigan Canal Tow path Co 1,400 Reloit and Madison R. R 1,000 Fox River Valley R. R $75,225 Total There being DO amount of deposits, the circulation is the only indebtedness with which the public are concerned. That the property is far more than sufficient for the redemption of the bills. the receiver has no leubt. That the stockholders, among whom are some of the wealt! jest men in Washington County may lote somethi in the depreciation of their stock, is quite probable; but that the public need fear no apprehension of loss other than delay, is quite certain We may add in relation to the affairs of this Bank, that is the common understanding among those best qualified to judge, that had Mr. Thompson, its President, beer willing to make such sacrifices as the times and his own obligations demanded, and such as he was most abundantly able to make, the Bank need not have Providence Post. gone into fliquidation. From The Providence Journal Sept 29. The banks of this city have resolved to suspend specie payments. A meeting of the representatives of the banks was held yesterday. William Sheldon, President of the Eagle Bank, was elected Chairman and Jabez C. Kright, President of the Roger Williams Bank Secretary. Thirty -three of the thirty nine banks were represented. The absentees were the Providence, Merchants', Bank of Commerce Union. What Cheer, and Lime Rock. After some discussion, an informal ballot was taken, and resulted 21 for suspension, 9 against saspension, 1 divided, and 1 not voting for want of instructions. A vote was then passed without a count: That this meeting recommend " the various banks of this city to suspend specie payments for the present. Shubael Hutchins of the American Bank, Elishs Harris of the Bank of North America and Jabez C. Knight of the Roger Williams Bank were appointed & Committee to tix upon a plan for the regulation of the exchanges among the Banks. The Chairman and Secretary were authorized to call another meeting, if in their judgment it should be necessary. This important measure has not been resolved upon without & well-considered opinion of its overruling ne. cessity. It may be the result of an incorrect system of backing, but it is the system upon which all our business has been concluded, and to which all our business adapted. No banks in the country present a more favorable proportion of means to their small

6. October 2, 1857 Orleans Independent Standard Irasburg, Barton, VT

Article from Orleans Independent Standard, October 2, 1857

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LOUISVILLE, Sept. 28. Dispatches have just reached this city announcing that the Bank of Nashville has suspended specie payments, and made an assignment. Brokers now refuse all issues of Tennessee banks. There is great excitement in financial circles in consequence of recent developments, and currency market in the State is in utter confusion. Notes of the old State Bank, Missouri, command premium here of one per cent.

7. October 2, 1857 American Union Morgantown, WV

Article from American Union, October 2, 1857

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TENNESSEE BANK. Louisville, Sept. 28.-Intelligence has reached here that the Bank of Nashville has failed and made an assignment. Suspensions of the Banks of Nashville occurred about noon, and the brokers now refuse all issues of the Tennessee banks. There is great excitement in financial circles in consequence of the recent developements, and the currency market is in a state of utter confusion. The notes of the old State banks of Missouri command a premium here of one per cont.

8. October 3, 1857 Republican Vindicator Staunton, VA

Article from Republican Vindicator, October 3, 1857

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Suspension in Tennessee. LOUISVILLE, Ky., Sept 29.-The Bank of Nashville suspended on Monday last, and made an assignment of its effects. The notes of all Tennessee free Banks are refused in Nashville. Bank Suspension in North Carolina, NORFOLK, Sept. 29.-Intelligence received here reports the suspension of the Farmers' Bank of North Carolina, at Elizabeth City. The brokers are charging 50 per cent. discount.

9. October 7, 1857 Weekly Council Bluffs Bugle Council Bluffs, IA

Article from Weekly Council Bluffs Bugle, October 7, 1857

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Telegraphic News. PITTSBURG, Sept. 29th All banks except one have suspended, but will resume when eastern banks do BALTIMORE, Sept. 29.-No change in money matters-5s only redeemed. PROVIDENCE, Sept. 29.-The Banks have resolved to suspend specie payment, yet their liabilities are only 25 per cent. of their capital. PHILADELPHIA, Sept. 29.+The Governor has issued a proclamation for an extra session of the Legislature to subserve the financial and commercial interests of the State. Pennsylvania bank has resumed. NEW YORK, Sept. 29.-Owing to a decrease in loans, specie, deposits and eirculation & meeting* of bank Presidents took place and resolutions passed to extend discounts 3 per cent. the coming week, which will make in the aggregate over $3,000,000. St.Lóuis, Sept. 29.-Bogy, Miltenberger & Ga, bankers, closed doors this a. m., assets ample. Banks in general discounting liberally. Anderson & Co., and Darby & Barksdale will soon resame. Bank of Nashville, Tenn. (will resume) Farmers' Bank, Elisabeth City, N. C., (will resume.) Bank of Commerce, Greytown, D. C., (will resume.) Farmers' & Mechanics' Bank, Greytown, D. C., (will resume.) (The Burlington, Cumberland & Salem banks have all syspended specie payment.

10. October 8, 1857 Fayetteville Observer Fayetteville, TN

Article from Fayetteville Observer, October 8, 1857

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The Old Banks refuse to Suspend. It was understood generally on the streets yesterday that the Bank of Tennessee, Planters' Bank and Union Bank would refuse to suspend, though no formal reply to the address of the meeting of the merchants had been reported last evening. All the other Banks in the city were kept open through the day yesterday, and paid out all calls. The following Banks were thrown out at the counters of the old Banks yesterday. The ground upon which their notes were refused, was that they had no agencies in Nashville to take them up. Some of them are believed to be entirely solvent. Here is the list: Bank of Tazewell, at Tazewell. Bank of Claiborne, at Tazewell. Exchange Bank, Murfreesboro. Bank of Lawrenceburg. Bank of Jefferson, Dandridge. Bank of Nashville. Bank of Memphis. River Bank, Memphis. Northern Bank of Tennessee, Clarksville.

11. October 8, 1857 Kenosha Tribune & Telegraph Kenosha, WI

Article from Kenosha Tribune & Telegraph, October 8, 1857

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Financial and Commercial. Since our last issue there has been but little if any improvement in the money market, either here at the west or at the east. In all the eastern cities, failures, suspensions and assignments continue to occur, in commercial and manufaeturing circles. The N. Y. Tribune of Monday speaks of a slight improvement in money matters in that city, but it has hardly been felt out this way yet. Grain continues to come forward very sparingly, and it is now almost certain that farmers in this section will hold their great bulk of the crop until next spring, either in store or in their granaries; probably mostly the latter. There has been no improvement in prices during the week, and we have seen but few loads in the streets. That our readers may be posted in reference to currency matters, we publish our list of doubtful and broken banks of last week. with the addition of those which have since failed. Waupun Bank, Wisconsin. Bridgeport City Bank, Conn. Pawcatuck Bank, R. I. Hamilton, Exchange Bank, N. H. Bank of Old Saratoga, N. Y. Bank of Belville, III. Peninsular Bank, Detroit, Mich. Charter Oak Bank, Hartford, Conn. " Mercantile Bank, " Exchange Bank, Lee Bank, Mass. Bank of Watertown, N. Y. Western Bank, Springfield Mass. Farmer's & Mechanics,' Bank Detroit Mich. Ware Bank, Mass: Broken and Discredited Banks Bank of Commerce, D. C. Bank of Georgetown, D. C. Bank of Nashville, Tennesee. E. J. Tinkham & Co's Bank, Chicago, III. Exchange Bank, Omaha, Nebraska. 8 The Banks of Providence R. Island, and of Pittsburgh, have suspended specie payments. BROKEN OR DISCREDITED BANKS. Bank of Norwalk, Ohio. Bank of Orleans N. Y. Bank of Tecumseh, Mich. Cecil Bank, Md. Danby Bank, Conn. Hagerstown Bank, Md. Niagara River Bank. NY. Bank of Hallowell, Me. Bergen County Bank, J. Warwick Bank, R. I. Sacket's Harbor Bank,1 Y. Honesdale Bank, Penn. Bank of West Tenn. Wooster Bank, Conn. Ontario County Bank, NY. Shelbyville Bank, Tenn. Warren Co. Bank, Penn. Tiverto n Bank, RI. Bank of Middletown, Penn. Niagara Co. Bank NY. Bank ofKanawha, Va. Hugenot Bk, New Palz. Bank of Elgin, III. Sandford Bank Maine. Hancock Bank. Maine. Medina Bank, N Y. Farmer's Bank, Rhode Island. Farmers and Drovers Bank, Waynesburg, Penn. Oilver Lee a Co's Bank, Buffalo, N Y. Reciprocity Bank, Buffalo, NY. Bank of North America, Seymour, Conn. Hollister Bank Buffalo, NY. Mechanics' Banking Association, N.Y. Bank of Kanawha, Virginia. Cumberland Saving Bank, Md. Bank of South County, RI. Bank of New Jersey, New Brunswick. Bank of Lima, New York. Bank of the Capitol, Indianapolis. Monsum River Bank, Maine. Ft. Plain Bank, New York. Farmers' Bank, Saratoga Co. NY. Fontenelle Bank, Nebraska. Rock River Bank, Wisconsin. Farmers Bank, Hudson, Wisconsin. Colechester bank, NY. Miami Valley Bank, Ohio, Western Bank, Lockport NY. Yates County Bank, NY. Bank of Hartford County, Conn. Bank of Canandaigua, NY. Fox River Bank, Wisconsin. Gerard Bank, Philadelphia. Bank of Pennsylvania, Philadelphia. Badger State Bank, Wis, Peoples' Bank, Milwaukee, Wis. Union bank Frenchtown, N. J. Hopkinton Bank, Conn. Chemung County Bank, New York.

12. October 15, 1857 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, October 15, 1857

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NASHVILLE: THURSDAY, OCTOBER 15, 1857. # The Money Crisis and the Tennessee Banks. The panie which occurred in the City of New York, on the failure of the Ohio Trust Company some four weeks since, and which it appeared for a short time would be local and temporary in its consequences, is proven to have been the beginning of such a storm, as has not before been felt in the country, since 1837. The firmness of the Boston Banks, and those of the whole South and West, which stood up so resolutely in the early stages of the panic. gave some assurance that they would be able to weather out the gale. But those appearances have turned out to be delusive. The suspension of eight banks in the City of New York, three days ago-the suspension of several, and the suspicion which rested upon others, of the South Carolina Banks, as reported by telegraph yesterday morning; and the further news that all the banks of the city of New York had suspended yesterday, and that exchange between that city and Philadelphia had been equalized, altogether have produced a marked impression, and have placed a gloomy face upon the financial affairs of the entire country. These facts have sent a thrill through our whole community here and the chief and almost only question on our streets yesterday, was, what will our Tennessee Banks do? Large crowds assembled at our old banks, several times during the day-many believing that there was an immense run going on upon the banks in their very presence and that these institutions were compelled to go by the board. The Bank of Tennessee figured as the centre of attraction for a large crowd, some absolutely dumb-founded, some highly excited, and some amazingly cool, at what seemed the process of prostrating that institution. Indeed, we heard upon the very steps of the Bank that it had suspended specie payments! The same was the case at some of the other banks; and the opinion was prevalent that it was probable that every bank in the city would suspend this morning. We have no doubt that highly exaggerated reports will go out from this city to the country of these occurrences. We almost deem it unnecessary to express our disbelief that any state of facts could now arise, that would force the three old banks of this city to suspend business. We feel every assurance that they can, and will if it is required, go on, and meet all their engagements, and redeem the last dollar of their circulation. It may strain them to do it, but they are, in our judgment, honest and able, and will stand as firm as the rock. We, therefore, consider that the main question is not whether our principal Tennessee banks will suspend, but whether the people will be able to stand the run which is, and is about to be, made upon them. It is our opinion that the people of Tennessee are much less able to stand the run upon the banks, than the banks themselves. And whenever they permit themselves to be carried away in this whirlwind of bank excitement, and are induced to make a a run upon these institutions, they wrong themselves infinitely more than they damage the banks by so doing. Every one will readily see that if the paper currency of the State is discredited, and the bills are returned to the banks, the currency will be reduced at once to specie. And if the banks are deprived of their silver and gold and are left with nothing but depreciated paper, they will be utterly powerless to afford any assistance whatever to the country. The immediate effect of this is to reduce the price of produce to a specie standard; to cut off all means of exchange between different sections of the country, and to paralyze every species of trade and commerce. These facts are amply illustrated in the decline of grain and provisions in the eastern cities within the last month, the fall being from 50 to 75 per cent. in a few days; and in the cotton markets of New Orleans and Mobile. The Banks of these latter cities have so far stood firm, and yet the general derangement of monetary affairs, and the difficulty of exchange, have reduced the price of cotton from 16 to 9 cents within the space of two weeks. Although their banks are good they have been compelled to look out for themselves, and this is the result upon the great body of farmers at the South. The same will be the inevitable result upon the farming interests of Tennessee unless our currency is sustained. Granting then that our banks are sound and able to meet the crisis without the quivering of a nerve or the blanch of a single feature, it becomes an inquiry of serious import whether the community is able to support it? And if not, what is the remedy? The remedy which was applied with greatest success in 1837, was the stepping in of Legislatures and legalizing suspensions. Where banks are undoubtedly sound, this is unquestionably the best remedy for immediate relief, that can be suggested. This is nothing more nor less than to allow the banks to discontinue the payment of specie, while all its other operations are permitted to go on in their usual course. There may be a vast difference between a suspension and a failure. A bank may be immensely rich, and really impregnable, and yet by an inconsiderate and suicidal run on the part of depositors and note holders, be forced into temporary suspension. In legalizing a suspension, there-

13. October 16, 1857 Weekly Clarksville Chronicle Clarksville, TN

Article from Weekly Clarksville Chronicle, October 16, 1857

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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.

14. October 20, 1857 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, October 20, 1857

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To the General Assembly of the State of Tennessee. The President and Directors of the Bank of Tennessee, have taken a step of so much importance to the Institution and to the interest of the citizens of the State, as to make it their duty to communicate to the General Assembly, the grounds upon which they acted. On Thursday morning last a partial suspension of specie payment, was, with great reluctance, ordered by the Board; they had resisted steadily, for weeks, the most urgent representations of many leading citizens and business men, as to the propriety and the necessity of a suspension under the confident belief that the banks of New York and New Orleans, with which a very extensive business had, for years, been transacted, would be able to meet and successfully resist the pressure existing in the money market. They learned on yesterday morning, that not only the Banks in New York and New Orleans had suspended, but that the leading Banks in New England and several of the Southern States, had done so likewise, which will probably lead to a general suspension of the banks in the United States. Such a course may operate very seriously upon the interests of this bank. Most of the bills maturing between this and the first of the year, are payable. and now in their possession, how and when they are to be paid, cannot now be ascertained. If promptly paid at maturity, as we confidently expected they would be, this bank would not have had the least difficulty in meeting any demand against it, as heretofore stated in a letter addressed to the citizens and business men of Nashville. If these bills when paid can only be made available to us on the currency, which may be adopted in those cities, it must be apparent to every one that we could not deal with them upon such terms, and pay in gold and silver, and time may be required to collect the other dues of the bank from our own citizens, to meet its liabilities. Without the amount due on those bills, the bank would still be able to meet and pay every demand against it in a reasonable time. It did not appear to the Board prudent to stand still and pay its liabilities in gold, when the banks in other States refused to do so. By the suspension in the principal cities, the value of gold has been so much enhanced, that the brokers and other speculators in money have already made it their especial business to hunt up the notes in every section of the country, of our branches, which constitute our principal circulation, and demand their payment in the precious metals for shipment to other sections. The interests of the bank, as well as the State, therefore, seemed to demand the course adopted by the Board. The interests of the individual citizens are not less involved than those of the Bank itself. If the Bank had declined to suspend and paid out their gold as demanded, it must be apparent to every one, that it could have granted no accommodations to any interest whatever, not even to its debtors and its best customers, its currency would have been withdrawn, its debts collected as rapidly as possible, and the debtors left to pay with the present deranged currency of the State, reduced near one-half in amount. The partial stoppage of specie payments adopted by the Board, will enable the Bank to go on with its regular business, and maintain its present circulation. When the citizens see the present condition of the Bank, and recollect that the faith of the State stands pledged for its liabilities, it is confidently believed that its value as a currency in the State will not be diminished. It will be enabled to continue, as heretofore, its usual accommodations to its customers, and relieve to some extent, under proper circumstances, many of its debtors; and, under the supervision and control of prudent and discreet directors, without danger to the interests of the institution or the State. Without some such relief as this, it cannot be doubted that the present state of our currency, and the derangement in commercial affairs, the citizens would have been greatly embarrassed in the transaction of their ordinary business. The Directors have already considered it not only their duty to watch carefully the interests of the institution which they were selected to control, but to protect and relieve the citizens from the revulsions in trade and the contractions and expansions in the currency of the Banks which so often occur, to their great loss and injury. During the last season much was done for relief by keeping up its circulation and continuing its discounts, and much more is expected to be done during the existence of the present embarrassment in our trade and commerce by affording the necessary facilities for the shipment of the products of the State to their appropriate markets. That the citizens may have confidence in their own Bank, as well as in the prudence of the Directors who control it, I submit the following statement of its means to meet its liabilities and pledged by the State for their payment:

15. October 20, 1857 Arkansas True Democrat Little Rock, AR

Article from Arkansas True Democrat, October 20, 1857

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THE NASHVILLE BANKS.-The Nashville Gazette, of the 29th ult., noticing the run on the Bank of Nashville, remarks: We understand that a portion of the com. mercial men of the city held a meeting, and requested all the banks to suspend specie payments temporarily; and we are toid that the Union Bank, Planters' Bank, and B ink of Tennessee, will refuse to do so-considering themselves strong enough to stand any sort of a pressare. We consi ler the panic here entirely uncalled for. There is no necessity for it, as the banks are strong, the country rich, and the people generaliv solvent. The Bank of Nashville had an immeuse amount of deposits, and has abundant assets to meet all liabilities-though unprepared to "face the music" upon all their indebtedness in the shape of ready money.

16. November 17, 1857 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, November 17, 1857

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HOUSE OF REPRESENTATIVES. Monday, Nov. 16, 1857. REPORTS OF STANDING COMMITTEES. Mr. Coop from the Judiciary Committee, reported in favor of the passage of the bill establishing the office of County Ju ge in the counties of Davidson, Shelby, Montgomery, and Knox, and the bill passed the second time. Mr. Wilson, from the Joint Select Committee, ap pointed to report a bill upon the subject of banks, reported such bill, recommende by a jority of said Committee. The first section repeals th provisions of any and all Acts which subjects the Bank of Tennessee and other banks to any penalty for not complying with the provisions of their charters in the payment of ch. ir liabilities in specie; also, that all proceedings in law against said banks, b.. cause of fuilure to redeem their not s, shall b BUPpended until the 8th of January, 1859, or such shorter period as the said banks themselves may fix upon; DO dividends are to be declared during suspension. S. etion second provides that if the New York and New Orleans anks resume specie paying during the spring and summer of 1858, the binks of this State are to redeem their notes within sixty days thereafter. The third section provides that no bank on resuming in this State shall issue notes of a less de. nomination than five dollars, and six months thereafter no notes shall be issued less than ten dollars, nor pay out any but their OWD notes or of their branches, or such Tennessee money as they are willing to receive, under penalty of one thousand dollars for every such offence. Section fourth compels the mother binks to redeem in specie the notes of their branches, and gives the Bank of Tennessee the same control of h r branches as the Planters' and Union Bank. have of theirs. And in case any bank fails or refuses to comply with the provisions of this act, if passed, such bank shall be subject to all the penalties and forfeitures of existing laws. The fifth an sixth sections require the free bar ks, within ninety days after the passage of this act, to deposite with the Comptroller, bonds sufficient to make their notes good; and in case of failure, the Comptroller must inform the Governor, who shall institute procee lings to annul and forfeit the char ter of such delinquent bank, and also provides the mode of winding up. The last section also provides that the officers of the binks of this State shall furnish the Governor with reports of its condition verified on oath on the first Mondays of January, April, July, and October, to be published in the Nashville papers. Section 8 venth provides for the punishment of such officers as fail to make such reports. Section eighth declares that no bank shall discount any note, bill, or other evidence of debt while suspended. The ninth section repeals the 1st, 21, 31, end 4th sections of the Free Banking law, but provid 8 that such persons or corporations as have gone into banking under such provisions up to this time shall not be affected by said repeal, the intention being to prevent any more banks from going into operation. BILLS INTRODUCED. Mr. Golliday, to amend the criminal laws of this State. Mr. Newman, to protect stock from milk sick. ness. Mr. Brazelton, to incorporate the Marshlin Cametery. By sime, to incorporate the Truestees of the Presbyter an Church at St Paul, in Jefferson county.

17. December 3, 1857 Nashville Union and American Nashville, TN

Article from Nashville Union and American, December 3, 1857

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The bill [286] to make more secure the rights of vendors of land-recommending passage. The bill [189] relative to debt contracted by women before marriage-recommending rejection. The bill [208] to vest magistrates with power to make appropriations to pay themselves for attending quorum and quarterly courts-recommending rejection. The bill [88] to amend the act requiring the sale of land and negroes to be advertised in a newspaper -recommending rejection. The bill [198] requiring Clerks and other county officers to live within their county towns, and for other purposes-recommending rejection. The resolution [64, Mr Copeland's] to amend the State Constitution-recommending rejection. The bill [97] to amend the criminal laws-which was recommitted-recommending, again, rejection. The bill [192] to establish a Mayor's Court for the town of Shelbyville-recommending passage. Mr NEWMAN, from the Committee on Internal Improvements, reported. The bill [187] to autherize the erection of mill dams across Duck river below Columbia-recommending passage. The bill [158] for benefit of Nashville and Northwestern, and other Railroad Companies, and lessen the State liability with an amendment, recommending passage. The resolution directory to the President of the Louisville and Nashville Railroad Company, asking to be discharged from its consideration. The Senate bill (56) to amend the Act amendatory of the charter of the Nashville and Cincinnati Railroad Company-recommending passage, with the amendment for benefit of Louisville and Nashville Railroad Company; recommending the rejection of the House amendment for the benefit of the Atlantic, Tennessee and Ohio Railroad Company; and recommend also, that the Louisville and Nashville Railroad Company be authorized to elect a Vice President, and that the iron mentioned in the bill be under the control of the Road Commissioner. PROPOSITIONS PASSED THE FIRST READING. Mr CARTER of Carter, introduced a bill [No. 284] to charter the Virginia, Tennesseee and North Carolina Railroad Company. Mr EWING introduced a la bill [No. 285] to amend the criminal laws. Mr WHITE of Knox, introduced a bill [No. 2861 to provide for the maintainance of the Deaf and Dumb Asylum at Knoxville. LIQUIDATION OF THE BANK OF TENNESSEE. Mr ALGEE submitted the following, which lies over: Pasche Committee nanas be, and they are hereby required to take into consideration that part of the Governor's message which relates to the State Bank, recommending the putting of that institution into a state of liquidation, and report a bill in conformity therewith. THE HOLIDAYS. Mr BRADFORD submitted the following, which lies over: WHEREAS, It has heretofore been the custom of a large portion of the members of the Legislature of Tennessee to visit their homes during the Christmas holidays, so as not to leave a quorum, or number sufficient to transact business, thereby encumbering the State with a heavy expense, without a corresponding benefit. Therefore, Be it resolved by the General Assembly of the State of Tennessee, That to avoid a useless drain upon the treasury, the present General Assembly will adjourn on Saturday, 18th of December, to Monday, the 4th day of January, 1858. NEW COUNTY OF SEQUATCHIE. On motion by Mr RAWLSTON, the House took up the consideration of the bill (23) to establish the county of Herndon, with Mr Roberts' amendments of boundary. The amendments were adopted. Mr RAWLSTON proposed further to amend, by striking out "Herndon," and inserting "Sequatchie." Mr WHITE believed that name would be preferred by the people set off; it was appropriate, name from the aborigines of the country and he would like to have it preserved in this way. The amendment was adopted; and so the bill passed the second reading. LAUDERDALE REVENUE. On motion by Mr LACKEY, the bill (102) for benefit of the securities of a Lauderdale Revenue Collector, was taken up. The Judiciary Committee's bill in lieu, having been adopted heretofore, was passed the third and last reading in the House of Representativer. SOMERVILLE. On motion by Mr MARIS, the bill (278) to amend the Charter of the town of Somerville, was taken up and passed the second reading. GILES COUNTY JUDGE. On motion by Mr WILLIAMS, the House took up the consideration of the Senate's amendment to the bill establishing the 14th civil district in the county of Hickman, to wit: authorizing the Governor to appoint a Giles county Judge for the December term; and the same being read by the Clerk, was concurred in by the House of Representatives. SPECIAL ORDER-BANKS AND BANKING. On motion by Mr ROWLES, the House now resumed the unfinished special order, to wit: Mr Polk's bill (265) to regulate the business of Banking -the question being on Mr Polk's amendment, for the suppression of small notes issued without the State of Tennessee. Mr ROWLES proposed to amend, by inserting appropriately the word, "knowingly," so as to read, "If any person shall knowingly bring into this State," &c. Mr POLK said it would destroy the force of the provision. Mr FRAZER made a general speech in opposition. Mr STANTON followed-looking to the Congress of the United States for remedy against the evils of small notes of circulation. Mr WILLIAMS said: Mr Speaker, I must beg the kind indulgence of the House, to submit a few remarks on the very important subject now under investigation. I have offered no bill of my own for the action of the House, not caring to be officious or prominent in the matter, and being willing to rely on the very sound judgement of the many learned and able gentlemen whose opinions accord with my own. I may, perhaps, suggest an amendment or two to some of the provisions of the various bills before us. The currency of every country is the great vital moving power that gives life and momentum to every department of its governmental and social policy, and whatever deranges that currency, is felt by all its relations proportionately, to destroy it, is not only to destroy the social relations of a country, but the government itself. The agriculturist plows the field-the mariner plows the main, because he sees in that a reward for his toil-the mechanic pours out his sweat only because he expects to receive a remuneration in money. View it as we please, sir, money is the great motive power that urges men to action; the wheels of government would stop to roll, and society would be reduced to confusion without it. Commerce could not subsist without some great medium and regulator. So obviously necessary is a currency to the convenience and comfort of man, that we find from the remotest ages of antiquity it was known and used It is likewise, knownto ali nations, from the barbarous African, to enlightened christaindom, and by all it seems to be taciturnly agreed, that that currency should be constituted of silver and gold. By international comity, the particular coin of one country recognized in another, and hence its importance asa commercial agent is immensely magnified. Then, if a currency is necessary, (and long usage, teaches that it is)it isjust as necessary that it should be uniform and not subject to sudden and violent fluctuations, it is important not only that it should be good to day, but in all times to come. For several thousand years the precious metal was its own represon-tative, and while that was so, although nations were swept away, and dynasties annihilated, no fluctuation, no panic or pressure was known, but for the last two or three centuries the ingenuity of man has been continually exerted to find some substitute for a metalic currency, alledging that there was not enough of the precious metals to supply the increasing wants of the commercial world, and hence, we have been cursed by fluctuatious, contractions and revulsions, occasioned by the system of banking, which blights not only the prosperity of our own country, but of every country where banks are known. The system was founded on two great fundamental absurdities. One, that there was not gold and silver enough to supply commercial wants; and another still greater absurdity, that paper money, or rather bills of credit, could be made a valuable and reliable substitute for metalic currency. To refute the former, we need only look at the thousands of millions of gold and silver floating through the commercial world-the golden strands of California and Australia, and the gold studded hills of South America. The greatest danger is of their being too much, which might depreciate its value. But that paper issues or bills of credit cannot be made a reliable substitute, is a truth demonstrated everywhere where it is in use. The colonies tried it during their revolutionary struggle, but it rolled back over them an overwhelming tide of ruin, more disastrous than the British arme. The United States Bank tried it on

18. March 6, 1858 Nashville Union and American Nashville, TN

Article from Nashville Union and American, March 6, 1858

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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

19. March 19, 1858 Nashville Union and American Nashville, TN

Article from Nashville Union and American, March 19, 1858

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# THE NEW BANK BILL. We publish this morning, the following bill which was acted on finally last evening in the House of Representatives, and needs only the signature of the Speakers to become a law: 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 Tenessee, 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 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 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 Section 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 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 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 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 established under the provisions of this act.

20. July 16, 1859 Nashville Union and American Nashville, TN

Article from Nashville Union and American, July 16, 1859

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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.

21. July 16, 1859 Nashville Union and American Nashville, TN

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lic credit," that it would "suspend again" after the ist of Novem ber, when its balances with the Union and Planters' Banks over one hundred thousand dollars, had to be settled in coin and the people advised not to take or keep its notes. These denunciations were repeated From day to day, by persons who well knew that the Bank belonged to the State, and that it was pledged for the redemption of its Habilities, andin which the people were interested to the amount of six or seven millions of dollars, and after a full examination of a committee of the Leg. islature, composed of a majority opposed to the institution and whose report showed it as sound and safe as any hank in the country, and verified by the sworn statements of its officers; evidently showing a setted purpose on the part of its assailants to destroy its credit, expecting and hoping that the continued clamor against it would destroy public confidence in it, cause its notes to besent home for redemption, and produce the ruin they had so confidently predicted. These continued attacks upon it excited uneasiness in the pullic mind, and apprehension for the safety of the Bank. The following statements taken from the books of the Bank will show the balances demanded of it for the redemption of its Branch notes. through the Union and Planters' Bank alone, in sums nearly equal by each, and paid in Nashville: To the two Banks in the month of July $192,500

22. October 24, 1859 Nashville Patriot Nashville, TN

Article from Nashville Patriot, October 24, 1859

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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-

23. January 15, 1861 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, January 15, 1861

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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.

24. March 9, 1861 Nashville Union and American Nashville, TN

Article from Nashville Union and American, March 9, 1861

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Bank of Tennessee. At the meeting of the Board of Directors of the Bank of Tennessee Thursday, Gen. G. P. SMITH, the President of that institution, resigned his office. We may here !state that Gen. SMITH desired to resign nearly two months ago, but the Board refused to accept his resignation. The following is his letter of resignation: BANK OF TENNESSEE. Nashville, March 7. To the Board of Directors of the Bank of Tennessse: Gentlemen: Having been henored with yourselves in the appointment as Director in the Bank of Tennessee, and by your partiality selected to preside over your deliberations, how I have discharged the trust confided to me is known to yourselves. Many there are who might have been selected possessing more ability and sagacity, but I think you will all bear testimony to the zeal and fidelity with which I have endeavored to discharge the important duties assigned me. Our administration has been a most embarrassing one, growing out of the failure of the crops and the political disturbances of the times; the latter not only having agitated the government to its very centre, but absolutely resulted in its dismemberment; and the Federal Treasury, W 1th all its heretofore high character for promptness, is now bankrupt. I advert to these circumstances with a view of showing that no human foresight could prevent the extraordinary pressure in financial matters here, which resulted in the suspension of specie payments by all the principal Banks in this State. I regret retiring from the head of the institution while this is the case, but as the General Assembly in extrordinary session has legalized suspension to a period beyond our term of service, I cannot hope, were I to continue in my present position, to look forward to a resumption of specie payment. I, therefore, tender my resignation as Director and President of the Bank of Tennessee, to take effect on and after Thursday, the 5th day of April next. Respectfully, G.P. SMITH. The resignation was accepted and the following resolutions were unanimously adopted by the Board: WHEREAS, We have been advised that Gen. G.P. SMITH intends to retire from the Presidency of this Bank at an early day; and whereas, we are unwilling he should do so without this Board of Directors giving some testimonial of their high appreciation of his qualities as a gentleman and as the presiding officer of this Bank; therefore, Resolved, That it is with sincere regret we receive the resignation of Gen. Smith. Resolved, That we cordially endorse and fully appreciate the able and careful manner President Smith has managed the business of the Bank. Resolved, That this Board tender to the retiring President their thanks for his many courtesies in the past, and their best wishes for his success in the future. Resolved, That this preamble and these resolutions be spread upon the minutes of the Board. These resolutions do no more than justice to the the energy and tact with which Gen. SMITH has managed the affairs of the Bank of Tennessee. Gen. S. R. ANDERSON was elected by the Board, by a unanimous vote, to succeed Gen. SMITH, a selection that will prove highly acceptable to all who have business with the Bank. Gen. SMITH was then elected a Director, and has consented to serve in that capacity. THE ROUTE FOR FREIGHTS SOUTH Under the head