Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-11

RADICAL FINANCIERING-SIX HUN
DIED AND FIFTY THOUSAND
DOLLARS OF THE SCHOOL FUND
SPIRITED AWAY-sTARTLIEG DIS
CLOSURES.
For several days it has been whispered
with bated breath in and about the CAPT,
tol that all was not going well with the
State Treasury As long ago as the 4th
inst, the Senate adopted a resolution cali
ing upon the Treasurer for information
as to the Whereabouts Of the public funds.
After three days delay, that functionary
addressed note to Speaker FriersOn,
stating in brief and curt terms that $l54,-
523 Ga of the public funds we're on deposit
in Fiscal Aeeneies" on the LIST inst, and
that the 7-30 u S securities belonging to
the School Fund, with the interest &C
crued thereon, are on deposit in the Ten
nessee National Bank at Memphis. When
this reply was handed to Speaker FrierS
son is not stated, but three days after its
date he presents it to the Senate, and be-
comes first the property Of the public.
simultaneously with this publicity, the
Speaker presented to the Senate special
message from the Governor, stating that
by direction of the Legislature the Gov
ernor, Secretary Of State and Comp
troller, have held for safe keep
ing S6lS,250 in 7-30 q. S. bonds,
known as the School Fund" He
states further that the Treasurer had
demanded this fund of the Comptroller,
who held it for safekeeping in good and
sufficient safe, IN a fre-proof building"
and that "last week, for the first time in
his life, he learned that the Treasurer
had loaned this fund to one of the Mem
phis banks, without consultation with
any of the State officials OF the Capitol,
and even without their knowledge" The
Treasurer, he says, claimed the custody
Of the fund-this "sacred" school fund
under an act Of the Legislature, passed
at the last session-and that it was &C
tually loaned to the bank at Memphis as
long ago as the 5th Of June last s
1t may also be stated in this place that
this identical fund" accrued from the
specie assets of the Bank of Tennessee
which were brought from the South. Thus
involving the entire metallic basis Of that
institution, as well as the educational in
terests Of Tennessee children for genera
tons TO come. tEs "a III u
In addition to the official documents re
ferred to, we will state some of the reports
current in the financial circles of THU
city, which are probably well-founded 1
is said that the Treasurers Memphis de
pOsitOry, the Tennessee National Bank
when it came into possession of the bonds
took them to New York and hypothecateC
them for currency, and used the currency
thus obtained in unsuccessful specula
tons, and the whole has thus been squan
dered. tits also stated that in addition
to the bonds and interest, some $50,
600 of the $I54,OOO, designated b,
the Treasurer as being deposite'
with "Fiscal Agencies was witt
the same bank, and has taken the sam
road as the rest. The total amount thu
placedin the keeping of this fiscal agen
cy, may be estimated at about $4,000
which if the statements made b
true, is likely to become a total loss to tn
State.
The matter has not been suficientl
developed to fix the guilt upon any one 0
more individuals. The Governor, in tn
gushing charity of his proverbially tends
aud amiable nature, says he intends n
reflection on the bank, as all banks hav
, a right to borrow and lend money" II
cannot say anything to the detriment q
the Treasurer, only that he protest
against the secrecy maintained by hin
in the transaction.
ave trust the Legislature will prOcee
at once to probe the matter to the bottom
1t should not lose a day, in ferreting OF
the responsible parties. If they fail
do so their own reputation will not fail
share the Odium attaching, to the transac
ton After all that has been said in thi
State by the Governor and his follower
of the So oredness Of the school fund,
f it becomes doubly their duty to satisf
the people how, why and where this ha
been squandered, even if it has not bee
the medium Of an atrocious crime