Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-06-13

OR Tennessee exchanges genefeiy are alsa l7Ftp6
With much interest the subject Of Re liability Of
he State for the payment Of the notes Of the
7xohanes Bank For the information Of our read
srs We copy the folloving'
From he Ckaa0nooga Ad0ertissr.
FxoHANoz BAuK We are frequently Intercepted
as 10 the Law and the faos in relaiien 70 the Az-
change Bank Of MurfreesboTo. As We charge nc
thing for our opinion, do not guarantee its cor
rectness but give il for what it is worth. TIE
Exchange Bank was established under be Free
Banking Law Of 1882. This law requires; Thai
Whenever any association Of persons, formed TO-
he purpose Of banking under the provisions Of that
act shall legally transfer TO the Comptroller bonds o.
The State, OF bonds endorsed BY the State, IN
amount not less than fifty thousand dollars, such
association shall receive from the Comptroller an
equal amount Of their notes couutersigned by him,
sud also BY him numbered and registered in proper
books ts be provided and kept for that purpose
in his offce The act further required the Comp
troer annually TO enter into bond to the stste ID
the suieient securities, conditioned for the ialthiu
performance Of the trusts aud duties imposed upon
him BY the act.
The 18Th section Of the act Of 1856, amendatoEy
Of the Free Bonking law, required the Comptroller
TO keep in his ofi,e we'll bound boohiu which 70
enter the number and amount Of al bills issued
under the Free Banking law, which msy be hled
with the Comptroller for inal settlement. II the
had complied faithfully with this provi
sion Of the act Of 1856 aud aso with the provision
Of the act Of 1852 which requires hin to number and
register 10 proper books, kept Tor hat Parpose there
certnly can e no difficulty IN telling W The num-
Der of hill whether or not il has been frsudu-
lsully pat into circulation seS~ A.
Toe "a aud 18th sections Of The act OF '5t, are
IS 70 loss
.S,c 40 Be a Jartb .aaste3 That The bonds
requiTei 10 be deposited 9Th ke EomPtr Tier BY
yirIne u iti- sol and the Bbieh his siRteuded
u amead shall be placed upon deposte in the Bank
OF Tennessee. aud thai no tes shall be counter
signed issued % any person, back or association
until this is fF done
nSee, - Be 6grlber sAaled, Thai the bonds SO
deposited shall he subject 10 the order Of the
Comptroller only Tor the purpose Of carrying intO
effect this act and The oct Ghich this is intended to
amend
II the Comptroller had not counteysigned any
bank notes until he had deposited in the Bank Of
Tennessee the bonds Of the State--Or the bonds
endorsed By the State; and If the Cashier Of the
Bank Of Tennessee had Dot permitted the bonds $50
deposited" 20 have been taken from The bank, ex
oept upon the 'order of the COmpi Keller" and then
''Only for the purpose Of carrying into effect the
free banking lsB," the people would not hsve been
30 outFageOusly sWindsd. j is said that there is
not dollar Of the bonds 20 redeem ihe outstanding
circulation OF the Exchange Bank, and thus another
very heavy tax is 10 be levied upon the bill holders,
in the depreciation Of this money to support one
system Of banking in this STATE. fskiPg eemmon
sense view Of the subject, We think that ths State,
or the securities Of the Comptroller, viii some day
have to foot the bill.
Referring 70 The same subject, the Lincoln Jar
nal says:
THE public mind seems ts haVe aTriTed generally
to the conclusion that the notes are worthless and
viii never be redeemed, but for Cur own part We
can see no good reason why this should be so, for
whether the bonds have been lost misplaced OF
stoles the negligence mRlfeRsanee In Office Of The
Comptroller officers Of the State Bank, cannot be
laid 10 the charge Of the note holders to make
them liable for the negligence frauds or thefs, Of
those be the proper terms Of the State cicers. By
ell the rules Of law, Of TssseE aud fair dealing the
holders have the right to demand tSeir redemption
by the STATE and we think the States officers will
find themfelves unable TO give 3 sufficient reason,
why the State should refuse to redeem them. The
Bank is a creature law, the signature Of the Comp
trOler upon the notes is priasa faeis evidence that
the bonds we're deposited with that officer according
to the requirements Of the Law, their deposit in the
State Bank is not denied by the officers Of that In
stitution.
The State by her own act constituted herself the
custodian Of the bonds belonging TO the Free Banks
Trustee for the note holders, certifying the truth
by the signature of the Comptroller upon every note
issued. The State taking the custody Of the bonds
and assuming the character Of trustee for the note
holders takes upon herself responsibility that she
cannot avoid by eng Encouragement Of her officers
or agents, but is liable to ali intents and purposes
Tor the Bonds. to the INK, upon the return Of the
amount Of lquidsted notes. or 10 the note holders.
upon their presentation Of the notes properly pro-
tested for non-payment
The AIoMinnVille Ns0 Era expresses its opinion
thus
"Is the State responsible for the issues of the Ex-
change Bankf It certainly is, as much SO as the
endoTser ola simple note Of hand. TheStste agreed
to endorse for Mr. Spence, provided he should COM
ply with certain ipulations-deposit of bonds Of
the STATE equal over the amount Of his circulation
and authorized her officer, the Comptroller, TO
ax his signature to the notes Of the Exchange Bank
when these conditions should have been complied
with as certifying the fact This has been done,
and by the appearance Of the name Of the Comp
trOlleT the people have the that the State
Of Tennessee holds in her hands sufficient amount
Of bonds TO redeem this money, and the State suffers
herself sWindsd by her officers, the nOtshOlder is
not should be the loser andnO rule equity
will permit the State to shrk the responsibility she
has assumed IS endorser for the issues Of the Elk,
change Bank. If the State endeavOrs to evade Ihis
responsibility, she win certainly be greater sEind
Ter than any who are nov implicated"
The Trenton Journal says;
4Ae outstanding ISSUES ol tHe GAcnAn8e Dank
countersgned by the Comptroller, is proof positive
that the bonds have BEEN deposited I'd the State is
as much bound fortheir redemption as though every
bond was still in the hands Of the Comptroller or on
deposit in the bank
We have not made these remarks for the purpose
Of fixing the censure upon any particular person,
but for the purpose of setting forth cur views
with regard to the responsibility Ofthe State for the
issues OF the Exchange Bank. If the State has any
credit at all and wishes to promote il, these notes
should be as good as any other Free Bank money.
Her remedy ia against her defaultng officers and We
surprised that immediate steps are not taken to
bring them to justice upon the evidence that is
already ELECTED.