Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-08-20
effect this act and tie act which this is in
tended to amend.'


| securities. The Legislature manifestly in
tended by the passage of this law, that the
! Bank of Tennessee should become the ulti-
| mate custodian of the Free Bank securities it
/ being much safer depository for them than
| the Comptroller's Office. BY this law the
Bank of Tennessee and the Comptroller were
intended to be checks on each other. i'll the
management and safe keeping of the securi-
| ties. The Bank was to hold the securities.
| and the Comptroller to sign and deliver over
| circulation corresponding with the securities
so deposited. The bonds ought 10 have been
| plac, d. on the passage Of this law, on deposit
| in the Bank of Tennessee by the Comptroller,
and an account or memorandum of the bonds,
so deposited, should have been made by the
Bank of Tennessee and all deposit of bonds
by the Free Banks. after that time should
| have been entered TO the credit of the hank
so making it. If any Of the banks went into
voluntary, or involuntary, liquidation. or if
they desired to retire any part of their circu-
atiOn. and take mp bonds from the Comp
troller. it was evidently the duty of the Comp
troller, to have checked the bonds out of the
Bank of Tennessee. and. the Bank to have
charged the Free Bank with the amount SO
Withdrawn.
| Col. A. r. Crozier resigned the Office Of
| Comptroller, to take effect Januaryt24 1856,
and James C. Luttrell was elected in bis
place, to fill out his unexpired term. He was
also elected for two years from March 1st,
1856.
The bonds of the Free Banks were in the
Bank of Tennessee, at the time of Col. Gro
zier's resignation and it would seem, that the
bonds should have been delivered over to
Col. Luttrell by the former Comptroller, Gro
zicr, and an account taken of them; but no
such account, or settlement, was ever made
by the old and incoming Comptroller, and
the Committee, in consequence, have not been
able to arrive at the number of bonds, that
the several Free Banks had on deposit at that
time.
The law, before recited, went into opera
ton during the administration Of Col Lut-
trell; hut it has been differently construed by
the Bank officers and the Comptroller, and it
is an open question at this time, as to the
proper construction of the law; but the pres
ent Comptroller and the officers of the Bank
of Tennessee have agreed to submit it, and
have it judcially determined.
The Committee are of the opinion that the
construction placed upon the law relative to
the custody of the bonds by the officers of
the Bank, is untenable, and that they should
have received the bonds subject alone to the
order of the Comptroller, for the purposes
specified in the Free Banking law. To illus
trate more fully how the bonds were kept
from the 18th February, 1856, until the LIST
March, 1858, the Committee herein set forth
the deposition of c.. johnson. President, and
j. Morton, Cashier, of the Bank of Ten
nessee.
They say ''that upOn an examination of the
18th, 18th, 18th and 18th sections of the act
of the 14th February, 1856, they came to the
conclusion, that the bonds" required to be
deposited with the Comptroller, ito be placed
on deposit in the Bank of Tennessee, only
required of them to permit the Comptroller
the use of the vaults of the Bank for the pre-
servation and safety of the bonds, as place
troller, as authorized by the 18th section of
the actin other words, q special deposit of
the Comptroller in the vault of the Bank,
subject alone TO his order. The bonds when
presented by the Comptroller, were deposited
in the vault by him. No account of the
bonds, or the number filed by him, was made
by the officers of the Bank. At first, they
were left in an open cedar box, in the vault;
but, upon the suggestion of the officers of the
Bank. each Free Banker procured tin box
with lock and key, aud the bonds of each
kept in their respective box. aud the keys
kept by the Comptroller in one of the drawers
of the Bank. When the bonds were needed,
either for the purpose of taking off the cou
pOns, or TO be delivered to the owner, it was
invariably done by the Comptroller, or his !
deputy, in the presence of the banker, or per- |
sons claiming them, and the act of delivery
of either coupons or bonds. cutting them off. |
&c, was done by the Comptroller or his dep |
Ity, and without interference by the officers |
of the Bank. The Bank officers did not con- !
slider that they bad anything to do with the |
bonds, or the use to be made of them, except |
TO keep the boxes safely and subject to the |
orders of the Comptroller, and no person was |
permitted to touch the box or bonds, except |
the Comptroller or deputy. One or the other
Of these officers was always present when the |
box was opened for any purpose, nor did the |
Bank officers consider that they had any con-
rol whatever over the action of the Comp |
roller, in taking of the coupons, or their
delivery, or the disposition to be made of the
ponds themselves" (See c. johnson and J.
dorton's deposition.)
Before the tin boxes were purchased, the
or his deputy, had free access to
he bonds, and without getting the keys or
from the Bank officers, and they |
we're at perfect liberty, either to deposit
bonds or withdraw them, or TO cut of cou-
DOns, without any account being rendered TO
he Bank of Tennessee of what was done
rhe proof shows that the keys of the tin
boxes were most generally kept in the drawer
IF the Cashier as is stated by the Cashier
himself. 1t is the opinion of the Committee,
hat the keys should have been kept by the
Bank officers, and not delivered up to the
comptroller or his deputy, and that the
proper mode Of access TO the bonds should
lave been through the order of the Comp
roller. We find, however, that the Comp
roller and his deputy We're recognized by the
rcsident aud Cashier of the Bank of Ten
lessee. As having the right to enter the boxes
whenever they deemed it necessary TO do So.
iessrs. Johnson and Morton say, "Mr. Mosby
vas often in the Bank, acting a deputy, with
he owners and officers of the Free Banks,
opening their boxes, cutting of coupcas, aud
'esiorming every duty required of the Comp