The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1855-11-09
1902 90
Total,
S735,5S2 Ii

Total, $735,5S2 Ia
Of this debt there has been collected and
secured to the bank, including principal and
interest, SlS920S rs.
After the most careful examination oil
these claims, the Directors are satisfied that
$3S8,9S5 So are "hopeIessy bad, and have
directed them to be charged off the books OF
the bank and branches, MS directed by the act
Of the General Assembly. Leaving balance
Of S2Il ,433 80, of bad debts, to be supplied
out of the annual profits of the bank 50 as to
restore the capital Of the bank.
REASONS FOR WINDING UP THE BANK.
The Bank of Tennessee wan established
for the purpose of creating "a fund for Inter
nal improvements" and TO mid III the est;b-
lishment of system of education.
The operation of the Bank in u few years
seem to have convinced the General Assem-
bly, of the impracticability of accomplishing
the great objects of its creation, under the
organization which had been given it; and an
act was passed in lSi9, directing the profits
of the bank to be paid into the Treasury, and
the payment of the interest on the Bonds of
the State and the School Fund to be made
10y the Treasury; by that time, near u million
of dollars had been taken from the capital by
appropriations of the Legislature, and the
debts lost by the bank. BY the a;t of the Sd
March, 1854, the annual profits of the bank
were directed to be applied, to supply the
deficiency of the capital occasioned by the
bad debts So that the bank cannot be re-
garded, at this time in any other light, than
financial project to aid the Treasury of the
State. 1t can scarcely be doubted, thnt an
investment of the School funds, composing
in part the capital of the bank in the bonds
OF the State, bearing an interest of six per
cent. would have been n more wise and Judi
cious disposition Of them, than in the Stock
of any corporation yielding nomnally two or
three per cent more; and especially in one
which was subject, from its organization, TO
all the casualties arising from the change of
its officers every few years, as the one or the
other party prevailed in our elections, and to
the carelessness, negligence, or frauds of
those controlling il. The other portion of its
capital belonging to the State, n million of
dollars, was obtained by issuing Bonds of the
state, bearing six per cent interest, and upon
winch the State now pays interest, aud will
be compelled to pay whether the bank yields
profit or not.
From the operations of the bank, hereto
fore, there is strong reason TO apprchcnd that
losses of n similar character may occur here
after, and that the profits, by the time charter
expires, may be required TO rcinstate the
capital as now required by the act OF lS54.-
Under such circumstances, il would seem TO
be the true policy OF the State, to pay the
million dollars for the bonds of the State
whilst il has the means under the control of
the bank, and to invest the school funds in
other bonds of the State, bearing interest, and
thus avoid the hazards incident to borrowing
money TO be reloaned under the control Of
any corporate body. The public is seldom
benefited by such financial schemes.
;. me money has to be paid by the citizens,
!, makes but little difference whether il be
uo"e through the Treasury or by the profits
on discounts, and loans made to them through
such y corporation; the more direct the mode
IIaopIeu, the better generally for the citizens.
IL Is IN The opinion of the Board OF Directors,
no "himporlant matter to avoid the danger,
seriously apprehended by many, of sublccting
.ne cltizens to taxation for the payment OF
,he debts created for the establishment of the
oahk, which would be the case, in tho event
OF any serious disaster happening to it, before
the expiration of its charter. The fund now
belonging to the State aud now in Bank, will |
70 lar toward distinguishing the present in.
ueo'ednoss OF The State. The present time
seems more favorable for the accomplishment |
VI THIS object than any other for years past |