Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-18
THE SCHOOL FUND-SOME INFOR-
NATION WANTED BY THE PUBIIC


1t is not our purpose to cast discredit
upon the statements Of any Of the parties
who have had anything to do with the
custody, use or recovery Of this fund.
Our Of ject is to state few facts, and to
request some information not vet given
to the public.
When the assets of the Bank of Ten
nessee were returned to this city at the
close of the war, that part consisting of
coin, the Legislature direoted, by act Of
9th June 1865, should be invested by
the Governor, Secretary of State and
Comptroller into United States or Tennes-
see bonds, and be subject to future legis-
latige control" This was done, and u
5. 1870 bonds to the amount of S6l8 $50,
were realized and placed to the credit of
the School fund
The public would ike to know why this
coin was not invested in Tennessee bonds
instead of United States securities at the
outset2 1t is well known that the bonds
of our State were then, and have all along
been, at less price in the financial mar,
kets than those Of the United States BY
such an investment we would have been
purchasing our own obligations with
drawn that much from the public market,
thus increasing the price of those remain
ing, and nave been paying interest for the
benefit of our own children On the con-
trary, neither the bonds nor currency of
the United States were, in the least bene-
fitted by the Investment of this coin in
the manner it was
One solution has gained currency, to
the effect that certain commission was
paid to the agent or broker who negoti-
ated the exchange of coin for the bonds,
and that our State officials received to
their private emolument, share of said
commissions We have no knowledge of
the origin of this charge, or of its truth.
1t is of such a character, however, that,
il untrue, it should be contradicted
promptly and descisively; and we shall |
cheerfully make room for the purpose in
these columns, if requested
Another question on which the public
desire information, is the Authority or
source of power whence the Legislature
acquired the right to take away from the |
note>hOlders Of the Bank of Tennessee
thiscoin security for their payment, and to
apply it to any other purpose whatever
If the school fund was misappropri,
ated or squandered under any cir
cumstance :, it is asked by what rule of
justice, the note holders of the Bank
which at most was a mere depository of
that fund-should forfeit fifty or seventy,
or any greater or less per cent on the
dollar, to make that loss good This is,
perhaps, at present purely Judicial
question; but having been raised by the
course of legislation, is one which the
public are disposed to discuss
As to the recent apprehensions Of the
safety of that fund, created by resolu~
lions Of inquiry by the Senate and a spe-
sial message from the Governor, we
printed, on Sunday morning last, the re
port of the Legislative committee who
vent to Memphis to inquire into the mat
er, made to the Governor This report
states that the bank paid $346,052 60 and
wenty three one thousand dollar State
bonds, and made satisfactory arrange
nents for the remainder They, also,
before leaving Memphis, gave the Bank
he following certificate of solyency:
The undersigned, committee of the
General Assembly of the State of Tennes- |
zee, having been delegated to examine the
lfairs Of the National Bank and fiscal
gent for West Tennessee, with regard to
he safety of the public money deposited in
aid bank, take pleasure in saying they
AVE been met with a promptness on the
part of the managers of that bank, truly
They have met our demand,
md we have no hesitancy in saying that
ye regard the bank entirely safe, and trust
may continue to do a prosperous and
profitable business. 1t has our best wishes
or its success, and we shall take an early
ccasion to present the subject to the Legis- /
ature in most favorable light. nj '
w. Bosom, ,a .
w. SPENCE, , {