Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1860-01-05
FAYETTEVILLE. TENN:
Morning, January 5, 1860
THEEXcf4ANcE BANK.

tTB6 GN0F8HstN9 DOtNtNs
We end the following welL written
articls inlthe Winchester Home Jour.
nsl, end feel gratilied in giving ut
To RANCE TO onr belief, that the editor.
Of that paperieelsit incumbent upon
him to Join us 10 "erying aloud and
sparing not, when there is anattempti
on the part of any one to @lsathsr
bis ewn nest by fleeing the people,
Our friend Slatters asks, .Wbere
is the oppose he CIR. Spence was to-
makef' Wlly,Ebless youl il reports be
true !; he did make one when be pur-
chased. seserafmoaths ago, a flopIing
mill at or near Murfreesbore, II er
$4,000. If that wasn't an eapossi
and an exposure, too, we would like
to know what it would take to'consti-
tute one. We would notSbee under
stood as ihtimating, though, that Mr..
Spence lined ; his pockets from the
wreck of the Exchange Bank, of which
he was the owner and manager. By
no means! We have too vivid re-
membrance Of some articles over his
name that appeared soon after the
collapse, in which a sitting .of the
whole matter WAS promised, for that
Whether the State is strictlyliabe
for the redempeidnosof .he Exchange
Bank notes, We cannot say. Opin-
ions differ. But we DO know that
on a note Of handtthe security makes
the pqper negotiable; and when the
principal becomes unable to pay. the
endorser has to 'sface the music"
and his recourse, when the obligation
is met, is upon the principal, for the
debt, with interest, and costs. III
this rule IS correct when applied to
one individual, it must be equally
correct when applied to an aggrega-
ton of individuals. So it seems to.
US. The State of Tennessee. through
its delegated agents. the Comptroller,
became security for the redemption
of the Exchange Bank notes. by
which they obtained favor With the
people; and if Mr.. Spence, the Jprin-
eipal, chooses TO resort to swindling, it
would seem as though the security
ought to be held responsible for the
notes to which its name is, BY its own
authority, placed. That, We take its
is plain, every day view of the mat
ter, as the rule would apply between
individuals. Whether, the qairks and
quibbles and tecbnicafities and CHI
cansry, or even a true rendering, OF
the law would so viewit in the pres
ent case, is another question.
Here is the Home Journals ar
ticle: it'll
EXCHANGE, BANK-Dr. Richardson
has offered a resolution in the Senate
which was referred to the Committee
on the Judiciary, providing for i the
redemption by the State OF outslandi
ing notes Of the Exchange Bank.Ti
Union and american. a..tl4Ta Il
The above paragraph brings vivid
" before our mind the stupendoas
swindle Of this Exchange Bank.-l
Many persons suffered by it, and
many who were lily able to bear the
loss. Our owa pocket had to sue
cumb to loss of about sixty dollars
in notes on this rotten concern
Those notes we're countersigned BY
he Comptroller, and on the strength
# that couDtersignment the notes Of
he bank we're exceedingly current. 1
But day before the disOloseure,i of
is worthlessness almost every ,one|s
regarded its notes as the ones to keep|
n hand. ic
But it went by the board, and a
many poor fellow suffered, while b
ome rascal or rascals, reaped the gain. o
rhe loss Of sixty dollars on this bank {
1 time when we were ain q pinch l.
Or money, has indellibly impressed s.
he swindle upon our memory, and Ia
in,e can scarcely efface it. But We i,
now OF others who lost hundreds Ia
I'd thousands, and to-day held the b
.aufiJul apromises 10 pay" 10 their Ia
ands. locking forward, perbacs, toll Il