Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-08-21

ne mean the enure circulation out, that had
been counterslgned by the Comptroller? The
witnesses believed him to mean the latter, as
they understood it in that way. 1t isin proof
by two or three of the Witnesses that Mr..
Spence was pressed to meet his engagements.
He admits in This deposition that he had
lost about 100000 in his transactions in
bonds. Is it to be presumed, then, if Mr.
Spence had the number of bonds in his box
he claimed, viz PIC, that he would have had
in the hands of the people only eighty-two or
three thousand dollars to represent it? Is
not the inference, then, that be returned his
circulation, and took up his bonds more in
conformity with his wants and necessities at
the time? This he did, as we see him with
drawing and disposing of 210 bonds, in the
short space of six months, viz in August IS,
September Al, October AZ, December ~, Feb
ruary 10, making the aforesaid number. (See
Morton's deposition and copy Spence's book
The Committee, from the foregoing facts,
and others of minor Importance, too numer-
Gus to embody in this report, with full con-
currence and confidence in their opinion, re-
port the fact, that Mr.. Spence was mistaken
that he did not have on deposit the 123 State
bonds claimed, and that he has withdrawn all
the bonds from his box that he was entitled
to, through and by virtue of his deposit with
the Comptroller.
In regard to the mode by which circulation
was obtained by the Exchange Bank, without
the proper number of bonds being on deposit,
INIT how m have
satisfactory information. We find in the
month of October or November. 1857, accord
ing to Mr.. Mosby's deposition, (and Mr..
Spence's admission) that he took from the
Exchange Bank box AZ bonds, and handed
them to Mr.. Spence, without any return of
circulation, taking Mr.. Spence's due bill for
the same. Mr.. Luttrell, in his deposition,
says, that Mr.. Spence afterwards lifted the
due bill by a return of circulation to that
amount. This proceeding. on the part of
Messrs. Mosby and Spence was not only cen
surable, but is in direct violation of the
Free Banking law, as no such authority or
power is delegated to the Comptroller.
The Committee would further report. that
they have no evidence before them, showing
that any of the Free Banks have received
from the Comptroller, countersigned by him,
more of the notes of said banks than their
bonds deposited. as required by law, except
the Exchange Bank, as heretofore explained.
But we have no means of ascertaining how
the fact is, except from the books of the
Comptroller, which afford but little informa-
ton on the subject.
The Committee beg leave to submit the fol-
lowing report under that part of the resolu
ton which requires them to .'enquire and as
certain what amount of interest has been paid
on the State coupon bonds, and what amount
should have been paid, so as to ascertain
whether any payments have been improperly
made y:
The Committee, upon this branch of their
investigation, have had many difficulties to
encounter. They referred to the Comprol-
ler's reports for the last six years for the in
formation desired, but were soon convinced
that they could not be relied upon, either as
to the exact amount of our Indebtedness, or
as to the rate of interest the bonds were bear
ing; nor did said reports furnish us with full
information as TO the bonds loaned to the va
rious Internal Improvement Companies, or
to the bonds endorsed by the State. To re-
port fully and accurately under the resolution.
it became necessary to get at the actual
amount of Indebtedness, the date when the
bonds were issued, and when they fell due,
and the rate of interest they bear, which
would give the amount of interest due annu-
N a.t
became necessary to arrive accurately at the
amount of bonds loaned and endorsed by the
State to the various Companies and to see
the amount of interest that they bore annual
ly, and the amount actually paid and wheth-
er the said Companies had always met the in
terest paid on the bonds loaned and endorsed.
To arrive at the whole matter correctly, the
Committee have carefully examined aud com
pared the original books and papers in the
and Secretary of States offices,
which have been very imperfectly kept, and
from them, and other information, they have
made out tables showing everything in regard
to the issuance of bonds, and the interest
they bear, when issued, and when they fall
due. Each item of State Indebtedness has
been very carefully and critically examined
from the original sources, and the Committee
feel that they can submit the various tables,
each one of which will be fully explained here
after, with perfect confidence in their accuracy.
The Committee find ii a matter of impos-
sibility to report the precise amount of
interest paid upon coupon Bonds, from the
fact that all the original Bonds issued to the
Internal Improvement Companies, and to
increase the capital of the Bank of Tennessee,
&c, did not have coupons attached to them,
and when interest was paid on these Bonds.
the evidence of il was placed on the Bonds.
BY act of the 2lst of February. 1852, law
was passed permitting the holders of Bonds
that did not have coupons attached to them,
to have them renewed, and coupon Bonds
issued to them in lieu of the old Bonds and
have the latter cancelled. Under that act a
large number of Bonds were renewed with
coupons attached. 4 correct list of these
renewals is appended to this report. There
are still a large number of the old Bonds out
standing that have not been renewed, and
The Committee cannot possibly arrive at the
separate items of interest paid on the Bpads |
hat do not have coupons attached, and on
Bonds with coupons attached. The tables |
will, however, show the amount of interest
lue on our State debt from January 1, 1850, |
20 July /. 1858. and the amount actually |
paid, and this will show any amounts |
improperly paid
The Committee have had but two sources /
fom which % S~rise the amount OF Interest |
laid on our State debt-one of which is the /
books Of the Comptroller and the other is
he coupons paid off and cancelled by the |
but the iaterest thus paid OFF is |
part of the interest that appears on the |
books in his Office. The interest on portion /
IF onr bonds Is PAYABLE in New York and |