Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-05-25
. - rp1roRs on rHE uEION Az AmERIoAN !:


I notice an editorial in your Sunday
mornings issue an account Of the condition of the
Exchange Bank, and quoting two sections Of the &C
Of 1856 You then say ." the spirit and intent
of these laws have not been observed by the Bank Of
Tennessee or the recent Comptroller. desire 10
stste that the charter of the Bank only authorizes
the deposit Of money in the Bank, which salWays
used by the Bank and for which it is liable on
demand. The Directors very early after its Organi-
cation adopted, however, the following resolu-
tion the Bank shall TscsiUs special deposits Of Bank
notes. nc0i1ed g0ld bars Of silUer, brought plate and
other UaluabIs articles Of small bulk for safe keeping at
The risk Of The deposition"
Under this regulation the Bank has been in the
habit Of resolving 60Iss and trunks and packages Of
various kinds, generally under seal or lock and key
and keeping them in the vaults Of the Bank for the
accommodation of the owner, and without cOmpensa-
tiou-the Bank officers generally ignorant Of the
contents, and having no control over them, except
to return them as delivered TO the owner. Before
the passage Of the act Of 1856, the former Comp
troller believing the vault Of the lnk safer than
his Office deposited in the vault the Bonds of the
State belonging TO the Free Banks and constantly came
20 the Bank, took possession Of the Bonds, cut Oh
Coupons and delivered them to the parties entitled;
this practice has been continued ever since. The
Bonds have been deposited by the Comptroller In
Tin boxes uRder lock and key and kept in the vault,
and when the Comptroller came or his deputy with
the keys they we're permitted to open the boxes,
take out Bonds or Coupons, and no account was
ever taken by the Bank of the number Of Bonds
put in the boxes or taken out I regarded them as
special deposits which the officers Of the Bank had
control whatever, except to redeliver the boxes
when called for.
Upon the passage of the act of 1856 directing that
the Bonds required 10 be deposited Nth the C0mVroJ
Ter" should be placed on deposit in the Bank of
Tennessee subject to the order Of the Comptroller
only for the purpose Of carrying into effect this
nd ,o ia inf al Z ed in
other light than compelling bylaw the then Comp
trOeT TO do what his prede eessor had done vOlun-
tarily. did not regard the Law as giving the Bank
officers any authority TO supervise the conduct Of the
Comptroller in putting the Bonds IN his box, or
taking them out or cutting of the Coupons, in
any way deciding for what object or purpose they
we're taken by him. or indeed any authority whatever
10 prevent him from doing So He was high officer
under bond and security and his duty to keep
an account Of the Bends and Coupons put into or
taken out Of the box In other words, regarded the
deposit as special and believed that the Legislature
only intended to authorize the Comptroller to have
the use Of the Bank vault as more safe place to
keep the Bonds than in. his own vault which was
authorized by the 18th section Of the same act.
so expressed myself to the officers Of the Bank a.
the time and still entertain the same opinion,
] may further add that no Bond or Coupon has
ever been taken from any one Of the boxes except
by the Comptroller or his deputy 50 far as know or
believe. The accompanying statement Of the deal
ing in Bonds between the Bank of Tennessee and
the Exchange Bank has been prepared by the Cash
Ter for the use Of the Legislative Committee now in
session, which you will please publish.
an respectfully, &C.,
Monday, May "a, 1858.
STATEMENT SENT THE COMMITTEE
ACCORDING TO THE JULY REPORT OF Mr.. SPENCE MADE
ON OATH.
Bonds on deposit S28I ,95S SO.
Additional deposits, 81 900 90.
S8I3, 958. SO.
! Since that report, there has been deliv-
cred by the Comptroller and Mr..
Spence TO the Bank of Tennessee, 2lOOOO 90.
slO8, 958. 80.
| Mr. Spence also left on deposit in the
Bank as collateral security which he
received from the Comptroller, 100000
s92,958 50.
&c Comptroller dunlap, 100000.
SECOND STATEMENT.
The ComptrOller's report in Octoberlast
number Of bonds on deposit for
Exchange Bank, $4,000.
Three bonds added as stated by Lutrell, 5000.
SI45,OOo.
| Paid by the Bank Of Tennessee in his
notes and bonds surrendered by the
/ Comptroller
December 8Oth, S42,OOOl Z, ooo
February 2nd, 10000
$4,000.
Bonds surrendered by Comptroller
Dunlap and notes burned, $4,000.