Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-01-11

The eluniy where Inc crime was committed. the
question being uPen this swenlnent cffsred by Mr.
Lane
N, PETERS Moved 10 lay bill and amendment
upon the table
Dir. sTOEELY demanded The ayes and noes.
which were taken and resulted ayes IA, noes s. as
follows;
Agss-Mssar Allen, Bumpass, HIdrsth HOru,
Johnson, Lane. Mickey. Mcclellan, MeNeilly, Pc
tiers, Slarton, Stokes st1val aud Wooi-i4
Noss-Messrs. Boyd, Bradford, Minis, Nash,
Payne, Riebardsor, s,okely and Speaker New
mans
So the bill and amen iment we're laid u2,n The
No 152-To Incorporates taO South Gibson In
stiiute
Mr.. ALLEN offered an amendment to iucorpo-
rate Che Humboldt. Female College. which was
Ths bill SIS thus amended tAen pas-oi on is
No 1870 compel the Coaaty Trustees to eeltls
annually with the Judge or Chairm IN of ihs Coaaty
Court, and to amend section 427 Of the Code P'ss-
ed, ayes %, noes
THIS EXCHANGE BANK.
Mr.. Rioharlsons resolution offered on the h Of
December, coming up in regu IT or1er, was read
as follows
Rssotpsd BIZ the General assembly Of The State Of
Tennessee. Taat whenever tue holders Of the notes
on the Exchange Bank Of Tennessee shall prssoat
them for payment 10 the C0mp'Toler ho shlu issue
warrant on the Treasurer TO tae holder Of such
notes. or 20 his agent fer the amount Of he same,
and thelTreasursr shall pay the amount GU Of any
moneys in The Treasury not ohersise apPr pFisted:
Provided always that the notes thus pre- seated for
pavment shalt bear on their face evidence Of having
been issued according to requirements Of the act
passed in 1872 regulating the business Of bank
ing il TenI es ee.
Mr. NEWMAN (Mr LANE in tie chair hoped
L., hsid
wrong. Nc resolution or act should be passed by
the Legislature to legalise fraud. lie regarded the
transaction connected With the Exehsnga Bunk a.
one of the most stupendu0us frGuls ever commit
ted in Tennessee, and he could not oOnseat 10 the
passage Of an set BY which the State should re-
deem the fraudulent issues Of that bank. rs was
satisfied from personal examination, tia. no bonds
had ever been deposited, as required By law, to
protee the issues of thst bluK now ou. He vas
satisfied that there had been fraudulent is4us CT
the notes Of tie Exchange Bank, and he protested
against taxing the people Of the State TO redeem
these fraudulent issdcs.
Mr. STOKELY inquired whether the Senator
from Franklin (NIr Newman) had any facts show
ing By whom this fraud vas committee.
Mr.. NEWMAN referred to the facts brought cut
in the report Of The select committee Of the last La
gislalure, as showing eoDoiusively that the bonds
never had been deposited and, therefore the over
Issues of the bank were fraudulent.
Mr.. PAYNE understood that the notes were sill
countersigned by the Comptroller, and he inquired
of the Senator from Franklin whether he believed
thas'oifieer was q party to the fraud
Mr.. NEWMAN believed the Comptroller to be an
honest mamie knew him 10 be such, but he fear
ed thai officer had reposed too much confidence 10
the honesty Of others. lie believed thatin his way
the Comptroller had been overreached By a shrewd,
calculating sooundrel.
Mr.. PAYNE desired to ask the Senator from
Franklin whether the Comptroller was not the agent
of the Siale and whether the State would not be
responsible for the acts of its agent, the same as
Other parties responsible for the acts Of their
agents.
Mr.. NEWMAN replied that the Comptroller was
the agent Of the SAFE to certain extent but as TO
the States liability Tor his acts in this matter that
depended upon tie construction Of the free banking
Law Of 1852 Ia his opinion, tde Stlte was not
bnund. Tne note OILERS hOFeVer, had legal rem
edy, and il The courts decided that the Safe was
bound to redeem the outs auding notes of ta' EK-
change Bank, if he were o member Of the Legis'a-
ture, he would vote for bill approprating money to
redeem the last dollar
Mr.. STOKES inquired whether tbs report Of the
select committee OF the last Legislature contained
all the facts in the possession Of that committee
Mr.. NEWMAN said there were some matters MT
sufficiently authenticated t. warraoi the c0mnittee
in reporting them but facts had since come to his
knowledge which justified him in denouacing the
affair of the over issue by the Exchange Bauk as
the most s,upendouI fraud ever commit ed ia Tea
nesses
Mr. STOKES. Then ought net this L,gsll ture
to appoint select COMMITTEES to investigate and re-
port upon the facts to which the Senator from
Franklin refersg
Mr. NEWMAN had intended to make motios to
r,commit The resolution to the Committee on the
Judiciary with power 10 send for persons and pa-
pers, that the matter might be investigated.
Mr. STOKES objected to recommittal to the
Committee on the Judiciary, as that committee was
already burthened with WORK He preferred that a
select committee be appointed to investigate The
matter.
Mr.. RICHARDSON had expected the resolution
to be opposed. He agreed with the Senator fro u
Franklin Mr.. Newman that fraud had bee1 COM
mitted, but he did not pretend to say by whom.
The free banking law required the bonds 10 be de-
posted with the Comptroller before he could sign
and Issue notes to any bank, and both the former
ComptrolleTs had testified under oath that they had
countersigned notes until the securities were de-
posited as REQUIRED by law. Every man who took
the notes Of free banks did so on the faith that
the law had been cOmpl I'd with, az indicated by The
signature Of the ComF trOllr. But in regard TO the
! Exchange Bank f; aud had been committed, and
the repor; CT the select Committee Of the last Lee
gisRiur, which had cost q great deal Of time ana
labor, did not expose the perpetraor or peTpetra-
| tors Of lha. fIaIL. To use phrase which was
somewhat in vogue in Congress, he wanted tae
subject ventilated" and so far Us be wa concerned
| il should he ventilated large number OF his
constituents he'd the notes OF the EGohaags Bank,
and he desired them to know by whom the f aud
! had been committed. A very large number of his
| constituents VINO we're as honest as any member
on this floor believed that the State was bound t.
redeem the outstanding notes of the Exchange
Bank. They had urged him to present the subec
to the Legs sture, and he had discharged that duty
! in Offering the +, solution uudeT consideration
lie was not prepared TO discuss the subj 4ct to-
! day Il had come up unexpectedly TO bin and be-
/ fore vote was taken be desired 10 present some
facts to The nGe in regard TO the matter
Mr.. NEWMAN would, WITH the Senator from
Rutherford (AIr RichardsOr,) like to kUow by
whom the fraud was committed. lie believed
neither OF the C,mptrollers had couatersigned any
notes for the Exchange Bank any other bank
until the law hsC been compli d With in the proper
depost If bends. He was in favor Of any proposi-
tItn to iuveUlgtts The subject, as to expos the
perpetr .tors OF The fraul. lie did no. think it ne
cessary, however to raise special c0mI2ittee to l.
vestigata the matter The Witnesses live near this
city and are ready = testify at ary TIM.
Mr. STOKES in reply 20 the Senator from ,gl7y,
(Mr. Payne said he believed there WAS no Igb in
the free banking Law to show that the ate is not
responsible to the holders Of the notes Of banks
operating under its pTovi1ions. If he lieVed the
Ststv was responsible for the fraudulent issues Of
the Exchange Bank he would vote for a bill 10 pay
only the honesl holders of its notes and not those
who had bought them up at heavy shave. He be-
lieved the free banking law the best banking Law
the St3te ever had or could have for honest men to
carry on the business of banking, but hnman fore
sight could not guard against such frauds as that
Of the Exchange Bank The Sruator'from Ruther-
ford was tight in Offering his resolution that at
tention might be directed to the subject. He
thought it not improbable that investigation might
show how and by whom the fraud was committed,
and where the m Jney went.
After some further discussion,
o. motion Of Mr. STOKES the further considern-
ton of the resolution was postponed until Friday,
the 18th inst, at ten o'clock.
SENATE Hills or SECOND READING,
No. I79-FOr the protection Of hotel, keepers in
certain cases.
Mr. STOKELY no ed to cOncur in tie recon-
meudation Of the Committee en- tn Iu loiary, that
the BIZ be rejected
Mr.. HORN demanded the ayes anA es'upOu the
motion. which were taken aud Cd ayes l3,
noes as follows:
Ayss--Ms srs Allen, Hildrsth, Lane, Mickey,
Minis, MeNeilly. Richardson, Stanton, Stokes,
Stokely, Wood Taomp on, and Speaker Newman
Ia
Noss-Messrs Boyd. Bradford, Bumpass, Horn,