Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-12-18
TBEeREArRANK CASE.
Conclusion Of the Eyidence-The Case
Submitted 10 ACKNOWLEDGEMENTS
0f Counsel. ege.

Submitted TO Argument-Argum
OF Counsel. eie.
The case OF. james as. the State Of Tens
nessee and the Bank ofTennessee, was again
before the Chancery Court yesterday. The
Exchange Bank at Murfreesboro failed some
years ago, leaving a large amount Of its
circulation in the hands of the people.
This bank was chartered under an act of
the Legislature providing that upon the
deposit of a certain number of State bonds
with the Comptroller as a security for its
circulation, any free bank might issue
limited amount Of notes, which should be
signed by the Comptroller. and when so
signed might circulate as currency. There
was another provision Of the same act re-
quiring the Comptroller TO deposit the
bonds of free banks in the Bank OF Ten
neessee for safe keeping. II is alleged
that the bonds belonging to the Exchange
Bank at Murfreesboro were lost by neglect
or misspplied. The suit now pending is
by one Of the holders of Exchange Bank
notes, for the purpose OF holding the State
and the BRnk of Tennessee bound TO make
good the circulation of the Exchange
Bank.
The argument was opened on yesterday
BY Mr.. Abraham Demos, for the COM
plainant The points made in the argu.
ment we're, First, That the defendants
demurrer could not now be available, be-
cause il should have been set down for ar
gument immediately, and heard first or
before other proceedings AS that had not
been done the demurrer was waved, be-
cause there was a complicated unsettled
account between the parties which could
only be settled in equity, and that the re"
| cent enactment repeating the section of the
Code 1907, which gives a right of action TO
a citizen against the State, is unconstitu-
tional, because il impairs the obligation of
contracts, and consequently is not avail
able to the plaintiff or his demurrer.
That the State of Tennessee assumed, by
the Comptroller, to see that the free banks
were safely and properly managed that
the Comptroller signed his name officially
to the notes of the bank before they could
circulate that this act was the indorsea
ment of the State, and without this the
notes would not have been taken as curren-
cy that if the Comptroller violated his duty
and deceived the holders of the notes, the
State put him in position TO do so, and
was responsible for it.
That the bonds required to be deposited
! by the free banks were received by the
State as a trust for the benefit and security
of the holders OF the bank currency; that
this trust fund might be followed and re-
covered from any one who received it, that
under the act Of 1856, these bonds were
deposited with the Bank Of Tennessee, and
If they were misapplied or lost by the
fault of the Bank of Tennessee, it is liable
to the beneficiaries of the trust that the
bank was in fault in keeping the bonds in
their bank vault-in keeping the keys of
the tin boxes in which the bonds were
kept, instead Of the Comptroller keeping
them-in allowing the boxes 70 be opened
and the bonds to be interfered with in the
absence of the Comptroller, in violation
of the act Of 1856.
Mr.. Demoss then reviewed The evidence
TO show the amount of bonds on deposit at
the Bank of Tennessee and misspplied or
lost.
Gen. w. b. Bate opened his argument
for the Bank of Tennessee. The points OF
his argument will be given tomorrow.
The case will probably occupy the court all
day Thursday