Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-08-19

lationsi
The legislative Investigating Committee, who have teen il
session the capito snce early Nay submitted 70 the Gov
eor the l4h ios therrepO upon the matters they
charged investigate. The report conns much that interest
ing and vauabe to the people Of the State but We find SC too lonl
for our columns We therefore, present such abstract az
tbk viii give the reader pretty clear insight ihe natter
rpln which the committee have reported.
FREE BAEK SECURITIES
The committee have had great difficulties to overcome get
ting the facts and data which for full aad
complete report lut tro1 thorough examinations We
ani papers the Comprollers oicfrom statements
by the Free Banks and from various dispositions taken @ nave
arrived at the following facts and conclusions:
By the provisions Of the Free Banking law passed Ee e
required before receiving FOR circulation from the Comp
e, deposit with him bonds equal in amount % tas eFeu,
aoa furnished hy him and with other amouhts q ZONES mat
might depreciation OF bonds they aho0o n0l DC az
The law further requires that circulation Of said banks
is required counisrgned, numbered and registered BY
HrSos h tie ofs Of de ssid CoHptroer The committee
and in the ocs o. e said Comptroller 6ook o[ eee one Of
which they tho circulation Of part of said banks has
tergned the Conptroer and given out rs him the Free
Banks but they confident that in many from the
Urapce Of the books, registered the
bonds deposited they do not give correct account Of the notes
Therehas registration at all Of the notes Of the Riser
Ban the Bank Of the Unon and Of Buck Bank and they find
the registration Of the Of the Bank Of Trenton
has been imperfect tina nothing at all be told from the
to the amount registered, there is registration Of
letters size Of bills: they find likewise that the mites
the Bank Of Knoxville have not been REGISTERED in fui
The books do not profess but in few instances give
dates when tie registration was made Of The notes nor do they
give any that Ineligible, Of the notes that have been
cancelled and other notes obtained in lieu thereof II full
perfect ineligible registration had been made Of all the
signed by the Comptroller and given over to the Pee
Banks as was clearly indicated By he t Banking Ia" o. leo
the returned and cancelled there would be but
Hltle aiI9cuig IN arriving az e ouls1ulne o. nc
hee bahs uoL as il IS ue oonnl'ee nave io eeI4h usa ny
which he guided in srtainng the outstanding circulation Of
the Free Banks and they have had to rely alone opon the state
by II registration
Of the Of the several Free Banks had made The Comp
amount OF outstanding circulation Of the several Free Banks
and by comparing q with the bonds on deposit he could a once
have seen Eheth er there any thing wrong not
The committee ind that there has been since the
account ep in ne Comptroers once OF the date when bonds
dodosited by the Free Banks, the amount deposited
the numbers and character Of the bonds; and though
such book required by law to be kept by the Comp
toler yet and business like and control
Of the Free Bank securities would certainly have required that
such book account houdbe kept Had this been done,
committee would OF Ia
Dor, aId all the dca ties that have been presented would not
have occurred could have been easily solved. That such
book PUNT should have been kept by the Comptroller Of the
Frse Bank securities thing should
le chance, the memory Of the Comptroller, is certainly
matter Of establishment and Elut parallel perhaps, in bus
the whole STATE.
The committee state that from the passage Of the Free banking
law mp February H. 1885, the bonds Of the Free Banks
kept by the Comptroller he being made by Law their custodian
Comptroller having place his office in which to
keep bonds poste Tennessee the hank
having nothing with them however further than to permit
the Comptroller deposit them there for sfkeepng. By the
February deposited comp
troer by the Free Banks, required to be PLACED upon de
ost Tennessee aud that no notes shall be coun-
tsrsgned issued any person. bank ASSOCIATION until this
done" subject order Of
Comptroller only for the purpose Of carrying into eject the
Tree Banking committee contend that The Legislature
anty intended by the passage Of this aw that the Bank of
Tennessee should become the ultimate custodian Of the Free Bank
securities and that the belonging
then have been placed deposit in the Bank Of Tennessee the
Comptroller and account memorandum Of the bonds
deposited by the Tendesee all deposit
by the Banks that time
credit Of the Bank making It. The committee then proceed
Col A r. Crozier resigned the Office Of Comptroller
effect January o. 1856 and James C. Lutre elected in his
place. to fill out his anezPed term He was also elected for two
he Free Banks we're with the Bank of Tennessee
bonds should have been delived Lae by the
former Comptroller, oroEer and account taken Of them but
such settlement by the Old and in
coming Comptroe and the committee in Consequence, have
been able to arrive the number Of bonds that the several
Free Banks had on deposit at thattime.
The law before recte went into operation during the admin
aton Of Col Luttre but it has been differently construed
by The bank officers and the Comptroller, aud open
ton at this time the proper construction Of the law; but the
present Comptroller and the officers Of the Bank Of Tennessee
have agreed submit and have it juiically determined
somewhat lengthy discussion Of the construction placed
upon the custody Of the bonds belonging the
Banks, the committee the provision Of the Free
Banking law requiring the Comptroller before entering upon
discharge duties imposed upod him, enter
into bond State annually thereafter, with sufficient
suretss in the Governor shall direct, and say
bond. pursuance Of this ACT taken By the Governor
which he elected, and find also, that bond taken with
the OF $4,000 Of the same officer March 1856 conditioned
directs with suretes which bond ap
proved by the Governor and registered according law These
the only bonds that executed by Comptroller Lut
te that the committee have been abe to md ana Col LttFe
that he did bond for the second
quired by said Free Bnkng law Two bonds we're executed under
the above by Col Croze 9th September 1852,
and the other Both August @ bot they have been unable to ind
The committee would regard to the withdrawal Of bonds
nsulaa ns N 10Th and The of
bonds that by the Free Banking Law the banker permitted to
deposit other regular Tennessee bonds the bonds Of % our
cities railroads, that endorsed guaranteed by the State.
large of the free bankers under this law awaited them
selves Of the right deposit endorsed bonds instead Of regular
the former could purchased favorable
terms than the latter For sometime there but little difference
between the regular State and endorsed ns and unh about
the middle Of last year. the endorsed bonds were considered as
good security the holder the regular bonds When
the panic m IN financial eoTiu caie on AS se le
in the price Of endorsed and regular state bonds was greatly in
creased and this difference still continues the regular State bonds
commanding from fifteen to twenty per cent more than en-
doTsed bonds.
ever permitted the Banks Withdraw their regular
bonds and deposit endorsed bonds in lieu thereof but this
the following viz Any Free Bank had right at any time
to withdraw lis bonds 50 the amount was not reduced eeoW MY
dollars returning lis circulation and having il
celed they could time withdraw their regular bonds
which could not he prevented y the Comptroller and
bank might day week afterwards present endorsed bonds
equal in the regular bonds withdrawn aud demand cir
culation on the amount thus that the Comp
troer had means N preventing the changes in endorsed and
regular State bonds.
The committee find but where bonds have been taken
out by the Comptroller and others substituted in lieu thereof e
Of Bank Middle that Col
r. Croe while Comptroller the bonds OF said
bank. and deposited in its sad- the only difference in the
that the taken had long time to
maturity the deposited. During Col LuttrciIs ad
the thing dOnehOt OF the bonds
regular State bonds and Dir Jackson that they had Oh
Of the officers Of the Bank Of Middle Tennessee
or the 9Th Of May last the committee counted and examined
Of the several Free Banks in tie State, and
list is given the bonds and their character which found
deposit. The committee then proceed:
Fromthe Of the Free Banks furnished Of the number
and Of the bonds they had hand, find the scr
ties right excerpt Exchange Bank (Which will be fully
spoken Of here) the Banks Of TzeWe Claiborne Tren
The last banks involuntary qu
correct list Of the bonds that ought be deposit the Cre
Of these part them changed hands
and having heard from their owners,
ascertain condition The committee, however have
borne Incorrect furnished us by thes
that in involuntary liquidation OF the number am
bonds deposited the committee would not
arrive Of bonds that should be to the
the circulation burned and bonds taken though he la
private book kept by himself which purpurts
give OF the circulation cancelled and bonds Ga
up Of the qudang banks to the time he went ont
him. counted the money burned it, and delivered
the party the circulation corresponding number
tell the
character bonds that should lC hand In regard to Oh
Thomas 2 Mostly late clerk the Comptroller Office coutcse
70 them that he had taken and appropriated 70 his use Nc ond
belonging the Bank TaEewe Of 81 900 each -four Of Wh
Nashville and Chattanooga bonds endorsed the State
had Bonds endorsed
State, belonging O. the Bank OF Trenton The dilculuC
presented result from the fact that the Free Banking law
1862 the aueudAtCry thrGrO, July
for FH HU md HU.Nr 81 .4rF