Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-05-25
COMMUNICATION FROM THE PRESIDENT OF
TIE BANK OF TENNESSEE.

L.
We give place to the following communication with
pleasure In the issue between that institution and
Mr. SPENCE, We take no part. If we had an Opin-
ion, would not be warranted in expressing it in
asmuch the matters in dispute are now under
going rigid investigation before the Committee ap-
pointed by the Legislature. But so far the act Of
1886 is concerned we still adhere to our express
sed opinion, that sits spirit ndintenthave not been
observed by the Bank Of Tennessee or the recent
Comptroller" OF this, however, the public can
judge for ITSELF and to enable it TO do impartaly,
we sgain publish the two sections from that act,
which read IS follows:
SEC. IA Be q further enacted, That the bonds re-
ouired to be deposited with the Comptroller BY vir-
tue Of this act and the act which tais is intended to
amend, shall Be placed upon deposit IN the Bank Of
THssSee and that notes shall Be e0unterSgRea or
issued TO any person. bank association until this is
first done
SEC. Is Be Il t,rtkerenaeed, That the bonds so de-
posted shall be subject 70 the order Of the Comp
trOer only for tkr purpose Of carrying inc eject h''
act and the act Vhieh this Is intended 10 amend
President JOHNSON, as viii be observed, places his
construction of the act on the ground that the
charter Of the Bank only authorizes the deposit of
money IN the Bank, which is always used by the
Bank and for which it is liable on demand Our
opinion is that the Bank of Tennessee is State in
stitutiOn and the Legislature can impose on it any
duty that they please, leaving option with that
Bank to say whether they approve it or lot. The
Legislature could make it the depository Of chips
and whetstOnes if it thought proper, and the officers
of the Bank would have no option in the matter.
The President of the Bank farther says that he
did not regard the law as giving the bank officers
any authority to supervise the conduct Of the Comp
troller " or in any way decide for what object or
purpose they were taken by him Does not the
18th section Of the act expressly say that these
bonds, SO deposited shall be subject to the 'Order
of the Comptroller only for carrying into effect this
act and the act which this is intended to amend?"
Another reason given By the President in support
of his construction is that the Comptroller was d" a
high officer Under bond and security. This argu-
ment won't do, because the law only requires the
Comptroller to give bond to the amount of 10000
while million and half Of bonds have passed
through his hands, aside from the large amount of
coupons The Legislature Of 1886 saw this,
and instead of increasing the bond ofthe Comptroller
it passed the st taking them out of the COmptrOlers
hand, making the Bank the custodian of the bonds,
reserving to the Comptroller the privilege Of "Or-
dering" them, and "OHly" for specific purposes.
This is our construction of the law. Here is the
construction Of the Bank of Tennessee. They may
be right and we may be wrong The Iublic can de-
termine To say the least Of 1t, our construction
carried out would have been much the safest for the
public interest.