Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1857-04-28

"CoRN EXCHANGE" AND WILD Car BANKEEs.-
FINANCIAL MIscALcULATIoN--The investigations
at St. Louis in relation to the "Corn Exchange
Frauds" of Gilman True and others, revealed some
curious particulars in the system of wildcat bank
ing 1t appears that these spectators originally
designed to purchase the Agricultural Bank of
Brownsville, Tennessee, which was owned by Da
visson & McCalla, of Chicago, and Alexander Nc
Clurg, of Racine, Michigan man named Geo.
B. Williams, brother in-law of Brock, who made
the drafts and formerly teller in his banking house,
was placed on the witness stand, and testified as
follows
Q.-Do you know for what purpose these drafts
were issuedl Al do not know; | have my opn-
ions, OF course / saw defendant think, in JAN
uary, for the first time, in Chicago; | think | saw
him there 10 relation TO the purchasing the Agri-
cultural Bank, 10 Brownsville, Tennessee.
Tho conversation with True was that / should
step forward and examine the charter aud condition
of the Bank, and if satisfied with il, purchase the
Bank on the terms proposed by Mr.. True. The
party purchasing proposed to pay, or l. the at
| torney Tor Mr.. Breck, proposed to pay a bonus OF
ten thousand dollars payable 10 bills Of the Bank
| 20 the party now holding il, the party holding il
agreeing TO mark those bills and protect its circu.
laton for one year; at the expiration of the year
| the bills were TO 20 down there TO be redeemed bv
| the Bank; that Is tie method by which tue bonus
was to be paid.
! Odd True tell you that amount woull be
wanted 10 remain from the Tennessee Banksp A.
1t would take $37, 500 Of Eastern Exchange.
mean By this it would be specie funds. Breck was
TO furnish the drafts on the completion Of the negO-
tiation, and they were 10 remain In the Bank
| sp Gle funds
Q-Do you know whether True knew what to
be the terms OF the negotiation for the Agricultural
Ban1 Ayes, sir, certainlYr for be fret diseov-
cred thrt il was for sale. lie as fully posted
in the circumstances Of the Bank and It's conduct
as well as | was; he knew that the Breck exchange
was to he US d as OF the capital OF the bank.
o Who was 10 manage that Bank? A-You
would need 20 see the charter 10 understand that.
True aud Gilman were not 20 20 TO Brownsville to
conduct that bank; but True was to circulate 50
much Of the money as he could. / d0n't know
| that Gilman was TO DO any thiRg in Tennessee.
True was TO make himself generally useful in cirsu.
latug the notes, furnishing collateral secarity for
sll the notes he got. The exchange was foreman
10 the bank and not TO De used uness IN the event
OF a run when IL would be sold. aud the fact Iele-
| grsphed, 90 that il could be provided for.
Q.--Mas there money 10 the Corn Exchange
Bank 70 meet this eKehsngsf Al have stated
that the amount TO be issued vas SS7, 600, and the
| afseHl SUN ever Knew brccA 70 keep IN thab
! bank was 50 900.
Q.-Was that within the knowledge Of True! A.
-Of course be knew Il there was a run tpscie
| Woull have TO be paid iato the bank. IL sas nec-
essay 10 have these drafts there comply with the
charter. The Legislature have made no difference
betwesn speels funds aud specie. Il was cot sup
posed thai al Of the EXCHANGE would Oe issued
There was bat one case Of run there; man came
With one Of the drafts for $4,000, anu went 10 Que
Of the directors and be spoke 70 anOsher director
.nd he gave il % Be understood that there cas- =
Northern Abolitionisi tha, was trying % run Of
'.siggers.p ana that be Wo0ll Fun % TIE bank,
! too
Q.-Did be not know that is was never intended
70 these draftsi Ale must have kuown Is.
o-D0 yoa knou If be knew ~ Ave ex-
anined The thing together. True was not kaown.
hossssF, 10 tue maslss 10 the other parties and We
/ did not Sc into the details Of tue working OF the
bank, oecasse did not mean bin 20 be inside the
bank; Oas he eeFtAiuly kusw the basis on which Il
wss 70 be eondncted, a. sAvs detailed IL here.
E%- A correspondent Of ne Nsw Orlea.s Piea-
V..s sass thai ab0at 10 000 inportsd slaves from
| AineA have been landed oa TIE Cabau coast snis