Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-03-25

At Knoxville. the place Of my residence by the
Chairman Of the Bank Committee in the Senate:
J. G LUrrRELL, ESQ Dear SRA resolution
passed the Senate to-day as follows RESOLVED
That the Senate Committee on Banks be directed al
once to enquire into the mode in which the seouri
ties Of the several Free Banks have been managed
in the Office of the Comptroller; whether any chang
es have been made in the securities. How and by
what authority2 How the accounts Of said Banks
have been kept in said Office That said Commit,
tee have power to send for persons and papers"
In order that the Committee may report intelligi
bly, upon the matter of inquiry committed to them,
it is indispensably necessary that you should be
here We, therefore, respectfully ask your presence
here at the earliest possible time.
Very respectfully,
J. KNOX WALKER,
chm Bank COMMITTEE.
This communication was mailed to me at Nash
ville on the 18th instant, received by at Knox
vile on the evening of the 18Th, and the morn
ing Of the goth, was in Nashville, ready TO answer
any interrogetory, or 10 make any explanation
touching the several matters contained in the reso
luton above recited Upon my arTivelhere, learned
with regret that the Committee had made a partial
report, and had been discharged upon the ground
that l was absent, at home in Knoxville, and
that the adjournment Of the present session
of the Legislature ives close at hand that the
enquiry and report ought not 10 beconcuded during
my absence or before the adjournment Of the Leg
isature This / regret very much; / came pre-.
pared to answer any interrogatory the Committee
might choose to ask, and could have given them an
explanation in FULL entirely satisfactory IL twenty
minutes.
As a matter of justice to myself, deem it proper
10 make a statement in regard to the several matters
contained in the resolution adopted by the Senate.
The first enquiry in the resolution, is 10 the
manner in which the securities Of the Free Banks
have been managed in the Comptroller's Office
In reply to this enquiry, have to say that when
was elected to the Office of Comptroller Of State
found the bonds deposited by the different Free
Banks with the Comptroller, in the Bank of Ten
nessee; not deposited, but simply placed 10 the
vault of the Bank for security without any respOn-
sibilty whatever being attached to the Bank for the
safety Of said bonds Finding this to be the condi
ton Of things, at applied to the Legislature
to pass act requiring the securities Of the Free
Banks to be deposited in the. Bank Of Tennessee
This act was passed, and the securities above men
toned were, and have been since, deposited in &C
cOrdanee with it.
The second enquiry in the resolution is in regard
to the exchanging Of bonds-thAt is whether have
at any time, exchanged with any banker, regular
State bonds originally deposited as basis of bank
ing for endorsed bonds. 1 have not the slightest
recollection of having ever made such an exchange
but on the contrary have refused positively and Gb
sOlutely TO make such exchange frequently and re-
peatedly as many Free Bankers in the State can
testify.
The third and last enquiry is as to the manner in
which the accounts of said Banks are kept. When
notes are issued to any Banker they are in the first
place countersigned, numbered and registered in a
book kept in the Office, and the bonds upon which
they are issued deposited regularly in the Bank
of Tennessee, and the character and description OF
the bonds are entered in book which is kept in the
Bank The Free Banks having the right, under the
act by which they were created, to increase or di-
minish their circulation at pleasure not to
duce below the limit 'set forth in the law, have
uniformly when the notes of any bank to the
amount Of one thousand dollars, we're presented at
the office, burned the same in the presence of the
party presenting them, entered the bond or bonds
upon the bank book, as having been taken up with
circulation.
This has been done with all persons so far as the
banks now in liquidation are concerned This has
been my during my term of Office, in regard 10
the Withdrawing of bonds with circulation although
the law does not require any record to be kept-does
not even mention any thing Of the kind, yet have
kept such a record for my own satisfaction.
This l respectfully ask to be spread upon the
Journal of the Senate.
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