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COMMUNICATED WHAT SHALL BE DONE? In the present deranged state of the currency, resulting from the suspension of specie payments by the Banks generally, and particularly in our own S ate, we often hear the question asked: What shall be done?" True financial policy consists in adopting our me isures to our means and to the circumstances with which we are surrounded. The suspension of the Banks in New York, Boston, Philadelphia, Charleston and New Orleans, left no alternative to the Bank of Tennessee, consistent with her duty to the people and the State, but to suspend also. No one doubts her ability to resume whenever the Banks at the large commercial ports shall return to specie payments. Then let the Legislature sanction the suspension for the present, but prohibit the Bank from charging more than half to one per cent. in the sale of exchange on any place in the United States. This would prevent exhorbitant rates being demanded for exchange, during the period of suspension and compel them to resume cash payments with the Banks of our sister States. The Bank should be required to pay specie on all its notes under five dollars, and, after resumption, to issue no note that is not payable at the place of issue. Extend the benefits of the act to all the Banks in the State, Stock as well as Free. Provided that no Bank shall be entitled to any of the provisions of the act, that does not pay to its depositors on demand in current funds, (such as are received by the Bank of Tennessre,) and make satisfactory arrangement with that Bank for the reception, and short periodical redemption of its notes. No difficulty, it is confidently believed, would be experienced by the solvent Stock and Free Banks, im making such arrangement. Of the Union and Planters' Banks it is useless to speak. Their circulation is small and they are in strong positions. In the daily exchanges they are usually the creditor Banks. The Banks of smaller capital might make the arrange ment by a deposit of State Bonds or other collaterals by the discount of a portion of their Bills of Exchange, of which it is said they all have plenty, or by the deposit of a portion of their coin. The ability of the suspended Banks would thus be tested. Uniformity in the currency of the State, in ordinary transactions, and with the Banks produced, & large amount of Bank notes now uncurrent would enter into immediate circulation. Confidence, to a great extent, would be restored, and pecuniary embarrassment alleviated. The Banks that failed to pay depositors, or make the required arrangement with the Bank of Tennessee, in - days (15 or 20 would be sufficient,) should be put into liquidation. No time should be fixed by the Legislature for resumption. Desirable as is that event, it must depend upon circumstances beyond the limits or control of the State, which no man now can foresee. The produce of the country must besent to market, and the indebtedness, to a considerable extent, not only in this, but in other States, paid off before that should be attempted, or can be safely accom plished. The provision in regard to the sale of exchange will compel them to pay specie when the Banks of the other States resume. The right to Legislate in regard to all the Banks, or to wind them up, should be expressly reserved to any subsequent Legislature. This would give time for discussion and reflection, and for 8 thorough reformation of the Banking sysA MERCHANT. tem of the country. TAINSON
