Nashville patriot. [volume] (Nashville, Tenn.) 1858-1860, 1858-08-20

| and delivered US the Bonds We counted
| them, and found them correct, and Mr.. Nor
/ ton again placed them in the box, locking it.
and placing the same in the vault of the Bank.
We were from one to two hours examining the
bonds. Neither Col. Luttrell, nor Mr. Mostly.
was present, nor did we see either of them
there during our visit (See their depository
The Committee are of opinion. that in ac-
cordance with the act of February IL. 1856,
| the Bonds, or securities of the several Free
Banks ought to have been placed by the
Comptroller on deposit in the Bank of Tenn,
not only as a general. but, likewise, as a
special dcposit-a general deposit, from the
fact, that, when deposited, an account ought
to have been taken of the amount and char
acter of the bonds, and likewise of the with
draw;,ls and as a specific deposit, from the
fact, that the special bonds were to be re-
| turned to the Free Bankers
After the Free Bank securities were so
deposited by the Comptroller with the Bank
| of Tenn. neither the Comptroller, nor his
! deputy, nor the Free Bank RS, had any right
whatever, to enter the vault Of the Bank for
the purpose of getting the bonds, depOsiting
others, cutting off coupons, or for any other
! purpose whatever. and the only mode, by
which they could he properly withdrawn,
was upon the order Of the Comptroller, only
for the purpose of carrying out the provisions
of the Free Banking law The Committee
! further find in the LIST sec of the Free
Banking law, the following provision, land
the Comptroller. before he shall enter upon
the discharge of any of the trusts or duties
into the bond of the State, and annually
thereafter, with sufficient sureties; to be APP
proved of by the Governor of the State, in
| such sum as he shall direct. with condition
| for the faithful performance of the trusts and
duties imposed upon him by this act, which
bond, being first Endorsed with the approval
| of the Governor, shall be filed in the Office of
the Secretary of State"
bond, in pursuance of this act, was taken
by the Governor from j. C.. Luttrell, for the
| unexpired term of Col. Crozier, for which he
was elected, and we find, also, that a bond
| was taken in the sum Of $4,000 of the same
| officer, March LIST. 1885, conditioned as the
| law directs, and with three sure:ies, which
bond was approved by the Governor, and
registered according to law. These are the
only bonds that were ever executed by Comp
troller Luttrell that the Committee have been
able to find, and Col. Luttrell says that he did
not execute a bond for the second year, as is
required by said Free Banking law. The
bonds were executed under the above law by
ID tIa ,Inv
aud the other 30th August, 1853; but they
have been unable to find any bonds for the
years 1854, 1855 and 1857 and are satisfied
that no such bonds were ever executed. The
Committee find that A. K. CroZer, while
Comptroller, was engaged in the business of
Free Banking. He states, in answer to an
interrogatory put to him by the Committee,
that, ''about six, or, perhaps, eight weeks, be-
fore resigned the Office of Comptroller Mr..
Dortch and myself purchased the Traders
Bank. Mr.. Dortch and | were equally in
tercsted in the bank, and there were fifty
bonds on deposit" While the Free Banking
law does not prohibit the Comptroller from
being interested in the Free Banks. yet, it is
very evident. that it is contrary to the spirit
and intent of said law. the interest of the Free
Banker and the discharge of the duties of the
Comptroller being inconsistent with each
other
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 permitted to deposit either reg,l-
l,r ba of p-i
our cities railroads that were endorsed aud
guaranteed by the State. A large number of
the Free Bankers, under this law, awaited
themselves of the right to deposit endorsed
bonds instead of regular State bonds, as 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. and until about the
middle of last year, the endorsed bonds were
consd red as good security to the note hold
er as regular State boadS. When the panic
in the financial world came on last year, the
difference in the price of endorsed and regu-
lar State bonds was greatly increased, and the
difference still contiuueS-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, evadcd by some of them in the
following manner, viz: Any Free Bank had |
a right. at any time, to withdraw its bonds so
IL III,
sand dollars, by returning its circulation and |
having it cancelled. and they could, at any |
time, withdraw their regular bonds, which |
could not be prevented by the Comptroller, |
and the same bank might, in q day or week /
afterwards present endorsed bonds equal in |
amount to the regular bonds withdrawn and |
demand circulation on the amount. 1t can
thus be seen that the Comptroller had no
means of preventing the changes in endorsed |
and regular State bonds
The Committee find but two cases where
bonds have been taken out by the Comptrol-
Ter and others substituted in lieu thereof &. /
W. Jackson, OF the Bank of Middle Tennessee,
states that Col. A. r. Crozier, while Comptrol-
Ter, took out one bond 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 time to run to maturity as the
one deposited. During Col. Luttrells add
minstration, the same thing was done-both
of the bonds were regular State bonds, and
Mr.. jackson says that they had no objection
to it, though both changes were without the
knowledge and consent of the officers of the
Bank OF Middle Tennessee.
On the 9th May, the Committee counted
and examined the securities of the several
Free Banks in the State, and the following is
n correct list of the bonds and their charae-
ter, that we found on deposit: