The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1855-11-09
l5,Ol2 90
&12IhSa LII

Total, S73j,jS2 II
OF this debt there has been collected ard
secured to the bank, including principal and
interest, SlS9,2US rs.
After the most careful examination of
these claims, the Directors are satisfied that
S3SS,YS5 So are 'hopclessiy ba% and have
directed them to be charged off the books of
the bank and branches rs directed by the act
of the General Assembly. Leaving balance
of SCI l,i33 80, OF bad debts to be supplied
out Of the annual profits of the bank 50 rs to
restore the capital OF the bank.
REASONS FOR WINDING uP THE BANK.
The Bank OF Tennessee was established
for the purpose of creating I'll fund for Inter-
nal improvements" and to aid ii the est;b.
lishment OF II system OF education.
The operation OF the Bank in II few years
seem to have convinced the General Assem-.
bly, of the impracticabiity of accomplishing
the great objects OF its creation, under the
organization which had been given it; and IN
act WAS passed in lS40, directing the profits
of the bank to be paid into the Treasury, and
the payment of the interest on the Bonds of
thc State and the School Fund to be made
by the Treasury; by that time, near million
OF dollars had been taken from the capital by
appropriations of the Legislature, and the
debts lost by the bank. by the act 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 Il
financial project to aid the Treasury of the
State. 1t can scarcely be doubted, that 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 pei
cent. would have been more wise and judi,
cious disposition of them than in the stock
of any corporation yielding nominalIy two ol
three per cent more; and especially in one
which was subject, from its organization, "a
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 cNrelessness, negligence, or frauds q
those controlling it. The other portion OF it,
capital belonging to the State, million o
dollars, was obtained by issuing Bonds of III,
State, bearing six per cent interest, and upoI
which the State now pays interest, and vii
be compelled to pay whether the bank yield
Il profit or not
From the operations of the bank, hereto
fore, there is strong reason toapprehend thu
losses Of similar character may occur here
after, and that the profits, by the time charte
expires, may be required to reinstate tn
capital as now required by the act of 1871
Under such circumstances, it would seem t,
be the true policy of the State, to pay tn
million dollars for the bonds of the Stat
whilst it has the means under the control o
the bank, and to invest the school funds il
other bonds of the State, bearing interest, an
thus avoid the hazards incident to borrowin!
money to be reloaned under the control .
any corporate body. The public is seldom
benefited by such financial schemes.
1t the money has to be paid by the citizens
it makes but little difference whether il
done through the Treasury or by the profit
on discounts, and loans made to them throug
such corporations; the more direct the mod
adopted, the better generally Tor the citizens
1t is, in the opinion of the Board of Directors
no unimportant matter to avoid the danger
seriously apprehendrd by many, of subJectin
the citizens to taxation for the payment Q
the debts created for the establishment of tn
bank, which would be the case, in the even
OF any serious disaster happening to It, beior
the expiration of lis charter. The fund no'
belonging to the State and now in Bank, wi
go far toward extingulshirg the present il
debtedness of the State. The present tim
seems more favorable for tic Accomplishment
OF this object, than any othlr for years pa