Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-11-28

Ihe amount OF revenue on deposit IN
the Tennessee National Bank to the
credit of the State at the time that insti-
tuition collapsed is stated by the Comp
troller, in his report on the condi-
ton Of the State Treasury, on the
first of October, 1865, to be $751;
I42 II. 1t appears from the state
ment Of the Memphis appeal, that
certain bills receivable were taken
and placed in the hands of law firm in
that city to be collected and the pro-
ceeds to be applied to reimburse the |
State. When the Tennessee National
Bank was designated by the State Treas
urer as a depository Of the public money, |
that institution was required to give . |
bond of 100000, with security approved |
by the Governor, for the safe keeping
and paying out on the checks Of the
Treasurer the public money deposited in
that institution, and this bond was to be
deposited with the Secretary OF State. By
the act of February 16, 1866, the United
States 7-30 bonds, in which the gold re-
covered with the Bank Of Tennessee had
been invested, which had been declared
as part Of the perpetual school fund"
were taken from the custody of the
Governor, Secretary of State and Comp
troller, and placed in the hands Of the
Treasurer, and by him deposited in the
Tennessee National Bank, with an I'M
derstanding, as is supposed, that they
were to be used by that institution in its
business transactions. These bonds were
not public money" and this may explain
why the proceeds Of the "bil!s receivable"
were to be placed to the credit Of the pub
lie money deposited inthe Tennessee Ma.
tional Bank. The securities On the bond
of the Tennessee National Bank were re-
responsible for the $751; II which the
Comptroller shows was On deposit in that
bank to the credit of the State, and it
could have been collected from them il
they were worth that amount. Had the
committee from the Legislature, or the
party or parties authorised to act for the
State, seized the bills receivable, to which
the appeal refers, and directed theiI
proceeds to be applied to replacing
the school fund.-" that much moro could
have been saved from the wreck of tht
Tennessee National Bank. Why thi!
was not done is one of the mysterie.
which shroud the whole transaction will
that bank. If the securities on the bono
of the Tennessee National Bank wer,
worth anything, the State could not have
lost any portion Of the public money de
posted in that institution. Why thel
were they permitted to escape this re
sponsibility, while the children of tn
State were left to suffer the great depri
walton Of the loss of nearly half mil
lion dollars of fund that had been Sc
apart specially for their benefit? The mys
terry of this whole transaction should b.
cleared up: why these bonds were takel
from the custody of the Governor, Secreta
: ~ Of State and Comptroller, and place.
in the keeping of the Treasurer, to be dc
posted in the Tennessee National Bank
who, ii any persons were benefited D.
this transfer; what was developed by thu
investigation on the part Of the commit
tee sent from the Legislature what sor
Of an arrangement or settlement Thu
committee made with the bank, and WHY
the proceeds Of the bills receivable they
secured were to be appropriated TO REIN
bursting the State, who was secured by ;
bond Of nearly four times the amour
Of the public money on deposit in tn,
bank, instead Of going toward refundin!
the school fund.- belonging to thu
children Of the State, who were no
secured. Will the Legislature still per
nit this dark cloud to rest upon thei
predecessors ? There has been fou
wrong committed somewhere, and tn,
people of the State should know VIII,
are guilty.