The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1858-09-03

Col. A. r. Crozier resigned the office OF
Comptroller, to take effect January "a, 1856
and James c. Luttrel was elected in hi:
place, to fill out his unexpired term. He was
also elected for two years from March /
1856.
The bonds of the Free Banks were with
the Bank of Tennessee at the time Of the
resignation of Col. Crozier, and it would
seem that the bonds should have been deliv-
cred over to Colonel Luttrell by the former
Comptroller, (Crozier,) and account taken OF
them, but no such account or settlement was
ever made by the old and incoming Comp
trollers, 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 rected, went into opera
| ton during the administration Of Col. l.ut-
! trel; but it has been differently construed by
| the bank officers ana the Comptroller, and it
is an open question at this time as to the
proper construction Of this law; but the
present Comptroller and the officers of the
Bank of Tennessee have agreed 70 submit it
and have it judiciolly determined.
After somewhat lengthy discussion of
the construction placed upon the law relative
to the custody of the bonds belonging to
the Free Banks, the committee refer to the
provisions Of the Free Banking law, requir-
ing the Comptroller, before entering upon
the discharge of the trusts or duties imposed
upon him, to enter into bond to tn. State,
and annually thereafter, with sufficient sure
ties, in such sums as the Governor may di-
rect, and say:
A bond, in pursuance Of this act, was Ia
ken by the Governor from J. G. Luurell for
the uncxpred term of Col. Crozier, for which
he was elected, and we find also, thata bond
was taken for the sum of 5000 of the
same officer, March ], 1856, conditioned rsy
the law directs, and with three snreties, which
bond was approved by the Governor and
registered according to law. These nre the
only bonds that were ever executed byComp
troler Luttrell, that the committee have been
able to find, and Col. LuttreI says that he
did not execute Il bond for the second year,
as is required by said Free Banking law
Two bonds were executed under the above
law hy Col. A. X. Crozer, one on the 9th Sep
tpmber, 1852, aud the other, 30th August,
1858, but they have been unable to find any
bonds for the years 1854, 1855 and 1857, and
are satisfied that no such bonds were execu
ted
The committee would state in regard TO
the withdrawal of bonds by the Free Banks
and the deposit of others, and the exchange
of bonds, that by the Free Banking law the
banker was allowed TO deposit other regular
Tennessee bonds or the bonds Of any Of our
cities or railroads, that were endorsed or
guaranteed by the State. A large number
oc the free banks under this Law, availed
themselves of the right to deposit endorsed
bonds, instead of regular State bonds, ms the
former could be purchased on more favorable
terms than the latter For some time there
was but little difference between the regular
State and endorsed bonds, nnd until about
the middle of last year, the endorsed bonds
were considered as good security 10 the note
holder as the regular State honds. When
the panic in the financial world came on last
year, the difference in the price of the endOrs-
ed and regular State bonds was greatly in
creased, and this difference still continues,
the regular State bonds now commanding
from fifteen to twenty per cent. more than
endorsed bonds.
There is no proof before the committee
that the Comptroller ever permitted any Of
the Free Banks to withdraw their regular
State bonds and deposit endorsed bonds, in
lieu thereof; but this may have been, and
doubtless was, eva6ed by some of them, in
the following manner, viz: Any Free Bank
had right at any time to withdraw its bonds,
so the amount was not reduced below fifty
thousand dollars, by returning its circulation
and having it cancelled, and they could nt
any time withdraw their regular bonds,
which could not be prevented by the Comp
troller, and the same bank might in day or
week afterwards present endorsed bonds,
equal in amount to the regular bonds with
drawn, and demand circulation to the amount.
II can thus be seen that the Comptroller had
no means of preventing the changes in en-
dorsed and regular Stlte bonds
The committee find but two eases where
bonds have been taken out by the Comptrol-
Ter. and others substituted in lieu thereof
e. w. Jackson, of the Bank of Middle Ten
nessee, states that Col. A. r. Crozier, took
ont one of the bonds of said bank, and de-
posted one in its stead, the only difference
in the bonds was, that the one taken out had
not so long n time to run to maturity as the
one deposited. During Col. LuttrePs ad
ministration the same thing was done-both
of the bonds were regular State bonds, and
Mr. Jackson says that they had no objection
to il, though both changes were without the
knowledge and consent of the officers Of the
Bank of Middle Tennessee.
On the 27th of May last, the committee
counted and examined the securities of the
several Free Banks in the State, and cor
rect list is given Of the bonds and their char.
ac,er, which were found on deposit. The
committee then proceed
From the reports of the Free Banks fur.
nished us, of the number and character of
the bonds they had on hand, we find the Sc
entities all right, except the Exchange Bank
(which will be more fully spoken of hcreaf-
ter and the Banks of Tnzewell, Claiborne,
Trenton and Jefferson. The last four banks
arc in Involuntary liquidation, ard the Com
miitee have not been able to get full and
correct list of the bonds that ought TO be on
deposit to the credit of these banks. A part
or them have changed hands several times
and the committee not having heard from
their owners, cannot ascertain their true
condition. The committee, however, have
no reason to suppose the bonds of the
Banks of Jefferson and Claiborne incorrect.
Had even statements been furnished us by
these banks, that are in involuntary liquida
iion. of the number and character of the
bonds deposited, yet the committee would
not be able to arrive at the correct amount of
bonds that should be to their credit. The
COMPTROLLER Luttrell kept no office book or
| .,..n d,,n, nf thu circulation hnrnrh md