The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-05-28

That the Bonds required 10 be deposited
with the Comptroller by virtue of this act
and the act which this is intended to amend,
shall be placed upon depOsite in the Bank of
Tennessee, and that no notes shall be coun-
tersigned or issued to any person, bank or
association until this is first DONE"
But it appears the first report is correct,
that one hundred and twenty-three thousand
dollars Of the Bonds are gone, no one pre-
tends to know how, when, or by whom, and
letter from Murfreesboro', to a business
house in this place, states that the issues of
the Exchange Bank are, consequently, not
worth more than twenty-five cents to the
dollar. There are also rumors that the Sec
rotary of State, Burton, is defaulter, and
that former clerk iE the Comptroller's Of
fee had acknowledged to some rascalites
and fled.
We shall probably have full account Of
the business in day or two.
Since the above was in type, we have re-
ceived the Nashville Banner of the 25th, from
which we take the following article:
The GAMBLERS SPoILs-THE PEOPLE PAY.
The recent developments of frauds and
rascality in connection with the affairs of the
Offices of the Comptroller and Secretary of
State present state of facts of the most
painful and startling character. The result
of the Investigations of the Legislative CON-
mittee has not been officially announced, but
its genera! features are generally understood
in this city, and have been made public al
ready in the columns of cotemporary.-
They show mainly that the Secretary of
State, who is Commissioner of the Turnpike
Fund, is defaulter in the sum of $4,000,
and that Thos. r. Mosby, who has been for
many years clerk in the Comptroller's Of
flee, has been in the habit of taking State
bonds deposited as security for the circua-
ton of free banks, and appropriating them to
his own use. Seven of these bonds, of ST.
900 each, have been traced to him by the
committee, and he confesses to having stolen
them. The Comptroller under whose ad-
mlnistration this theft was perpetrated, J. C..
Luttrell, is acquitted of criminality in the
matter, though generally censrred by public
opinion for inattention to business. Mr.. Lut.
trell had unbounded confidence in his clerk,
Mr.. Mosby. When ne went into office, he
found Mosby there, familiar with the bust
ness of his office. Col. Crozier, Dir. Luttrell's
predecessor, and other leading gentlemen
connected with the departments, recommend
ed him in the highest terms, and he was en-
pIoyed by Col. Luttrell at higher salary
than the services of other good clerks could
have been procured for on account of his sup.
posed integrity and experience.
The fraud connected with the Exchange
Bank, by which an indefinite circulation of
notes of that Bank has been thrown out with
out the deposit of securities, has not been
traced to its proper author or authors as yet.
The law requires the bonds to be deposited
before the notes are countersigned by the
Comptroller. The owners of the Bank al.
ledge that those bonds were deposited, and
that Sl23,000 nre missing. To make this
assertion good, it is only necessary, we pre-
sumo, to produce the receipt, which should
have been taken for every bond deposited
The mystery involved in this matter we pre-
sumo is capable of solution, and the public
will await with anxiety the result of further
Investigations. The responsibility lies be-
Tween the. owners Of the Bank, (the Messrs
Spence,) the Bank of Tennessee, and the
Comptroller. We trust and believe the com.
nittee of investigation will not stop short of
, thorough exposure of the facts, if their au-
lhority extends that far; If not that the Gov.
srnor and Attorney General will consummate
The work.
The same paper contains the following
TO THE PUBLIC.
NASHVILLE, TENN, May 2lst, 1868.
We the Committee appointed by the last
General Assembly of the State of Tennessee,
10 examine into the securities deposited by
The several Free Banks with the Comptroller
IS basis Of Banking, and how said securi.
lies have been kept, de-, for the information
Of the public, would state that we have ex-
amned into the securities of the following
Free Banks, and find them correct, and their
Bonds now on deposite in the State Bank, to
wit:
Bank Of Middle Tennessee, Northern Bank
OF Tennessee, Commercial Bank Bank of
Memphis, Bank Of Commerce, Bucks Bank,
Merchants Bank. Traders Bank, City Bank,
Bank OF Knoxville, Bank Of the Union Bank
Of Paris, Farmers Bank, Southern Bank,
Bank of Nashville.
The other Free Banks, except the Exchange
Bank, have made no report to US, and we can
make no statement at present as to their con.
ition. The Committee are unable to give
any information concerning the Exchange
Bank, further than to say that if said Bank
has any Bonds on deposit at present, we have
been unable to find them. We find that j.
/. Dunlap, present Comptroller, received from
The former Comptroller ninety three Bonds
for one thousand dollars each, which were on
deposit by said Bank, which Bonds have since
been withdrawn by the Bank surrend ering
and having burned her notes TO that amount.
We also find upon counting the Bonds now
on deposit by the several Free Banks, that
none have been lost since they were received
and receipted for by the present Comptroller
J. ID. GooDpAsrURE, Chm'n.
A. F. Corr,
T. W. NEWMAN,
T.. j. TURNER,
NJ. VAUGHN.
EXECUTIVE DEPARTMENT,
May 2lst, 1858.
AT the request Of the above Committee,
witnessed the counting of the State Bonds,
deposited by the Free Banks as the basis of
their circulation, and fully concur with the
Committee in the above statement.
IsHAM G.. HARRIS.
H The Nashville Union and American
Of Thursday says: The notes of the Ex-
change Bank at Murfreesboro', were thrown
out by the banks in this city yesterday, and
're not purchased by the brokers at any
price.