Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-08-20
REPORT OF THE INvESTIGA'
- TING COMMITTEE.

tho several free banks have been managed IN
tho office of the OBSERVATION-DISCLOSURES any
changes have been made-hOw the accounts OF
If said banks have been kept in said Office
enouire fully how all matters touching the Free
Tanks have been managed in said Office. Inc
Committee will also enquire and ascertain
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-the Committee will report fully upon
all matters referred to them-and that they
enquire, whether or not, any OF the free
Banks have received from the Comptroller any
more of the notes of the said banks than
State bonds filed in the Comptroller's office,
as Dy law required, and whether or not any
bonds heretofore fled in the COmptroller's
Office have been withdrawn and others filed, "
beg leave to submit the following report:
The Committee met at the State Capitol,
May 10th, 1858, in pursuance OF the above III
str1lctions. and proceeded Immediately to the
discharge of the several duties assigned them.
The Committee have had great difficulties
TO overcome in getting at all the facts and
data which were necessary for full and com
plete report, but from thorough eXamIna-
nation of the books and papers in the Comp
troller's ofice-from the statements furnish
ell by the Free Banks, and from various de-
positions taken, they have arrived at the iol-
lowing facts and conclusions.
By the provisions of the Free Banking law,
passed February u, 1852, and the acts amen
datory thereto. the Free Banks were required,
before receiving notes for circulation from
the Comptroller, to deposit with him bonds
equal in amount to the circulation furnished
by him, and with other amounts OF bonds
that might cover any depreciation OF Dohds'
if they should not be at par value.
The law further requires, that ''the circula-
ton of said banks is required to be counter
signed, numbered, and registered by the Comp
troller in proper books 10 be provided ana
kept for that purpose in the office OF SAID
Comptroller" The Committee find in the
Office of the Comptroller a book tor each one
of the several Free Banks, with their names
on their backs and in which they find, that
the circulation of a part of said banks has
been registered as required; but the Com
mittee cannot tell, whether said books give
full and correct account of all the notes coun-
tersigued by the Comptroller, and given out
by him to the Free Banks; but they are con
fident, that In many cases, from the appear
ance of the books, the number OF notes re-
gistered, and the bonds deposited, they do
not give a correct account of the notes signed.
There has been no registration of all the
notes of the River Bank, the Bank of the
Union, and of Bucks Bank, apd they find,
that the registration of the notes of the Bank
of Trenton has been so imperfect, that nothing
at all can be told from the book, as to the
amount registered, as there is no registration
of the letters and size of bills. and they find
likewise, that the notes of the Bank of Knox
Vile have not been registered in full.
The books do not profess, but in few in
stances, TO give the dates when the registra-
ton was made of the notes. nor do they give |
any account, that is ineligible, of the notes
that have been cancelled and other notes OBJ |
tanned in lieu thereof. If full, perfect and |
Ineligible registration had been made of all |
the notes signed by the Comptroller. and |
gwen over 10 the Free Banks, was clearly !
intended by the Free Banking law of 1852. |
and of the notes returned and cancelled, there |
would now be but little difficulty in arriving |
at the outstanding circulation of the Free |
Banks: but as it is, the Committee have 10 |
certain data, by which to be governed in AZ
rertaining the outstanding circulation of the .
Free Banks. and they have had to rely alone
upon the statements furnished by the Free
Bankers If correct registration of the notes
1f the several Free Banks had been made, the
would, at all times, have been
able to see the correct amount OF outstanding
circulation of the several Free Banks, and by |
it with the bonds on deposit, he
COULD at once, have seen whether there was
ANYTHING wrong or not. The Committee find,
that there never has been, since the passage
Of the Free Banking law up to March LIST,
1858. any book or account kept in the Comp
rollers office, of the date when bonds were
deposited by the Free Banks, the amount de-
posted, and the numbers and character of the
bonds; and though no such book was required
,y law to be kept by the Comptroller, yet a
correct and business-like management and
control of the Free Bank securities would
certainly have required. that some such book or
account should be kept. Had this been done.
he Committee would have been saved an i'm
mense amount of labor, aud all the difficult
ties that have been presented would not have
I., 81
That no such book or account should have
been kept by the Comptroller, of the Free
Bank securities, and that the whole thing
should have been left TO chance, or the mem
Dry of the Comptroller, is certainly matter
If establishment, and without parallel, per-
,aps, in business transactions, involving as it
Ices the monetary interests of the whole
State. From the passage of the Free Bank
ng law, up to February 18th, 1856, the bonds
If the Free Banks were by said law kept by
he Comptroller, he being made by the law
he custodian of the bonds for the Free Banks
md the Comptroller, having no safe place in
which to deposit the bonds, kept them "by
permission of the officers OF the Bank OF Ten
lessee in their book vault, keeping the bonds
IF each Bank in u paper portfolio, with the
lame of the bank written on the back of the
portfolio, and they deposited the bonds in u
;edar box, in the book vault" (See A. K,
;rOZier's depository Col. Crozier states.
hat during my term OF Office, the Bank OF
tennessee had nothing TO do with the bonds.
{ was al my request To the Bank officers that
hey were deposited IN the bank
While the bonds were thus kept by the
ut the Bank of Tennessee, there
yas no account kept by the Bank of tie
,onds 50 kept, and there was no obligation or
Iuty devolying upon her to 80 keep an ne
;ount, as il was mere matter OF favor ex-
ended 20 the Comptroller. TO let the bonds
emain there place OF security. But on