Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1868-12-22
THE SCHOOL FUND" AND THF
TENNESSEE NATIONAL BANK.

AT last we have a little light on
the subject of the lost school
fund" Mr.. Rutter, the President
Of the Tennessee National Bank of
Memphis, publishes the following
card in the Memphis A0aIanche of
| the 10Th inst:
TENNESSEE NATIONAL BANK OF MEMPHIS.
Having this day returned to Memphis,
| after an absence of some five weeks,
| take the first occasion that has offered to
notice certain publications in the Appeal
| regarding the affairs of the late Tennes-
see National Bank at Memphis, and to
make brief statement of the facts in the
| premises, and which statement | will
more fully explain at future time The
bill known as the Fiscal Agency bilP'
was not dictated by me or at my inA
stance, but by another of our 'Na~
tionals :" although the Tennessee Ma
tional did secure the appointment, upon
| the ground that the claims of this insti-
| tuition therefor were equal to those of
other banks applying When the fund
known as the School Fund was deposited
in this bank, receipt was given to the
| proper authority for the same, and the
amount received Immediately entered up
to the credit of the proper account on the
| books of she bank. Some of the State
authorities, however, deeming it impru-
dent that 30 large a fund should remain
in an institution of so small capital, or,
indeed, in any bank, committee was, at
the suggestion of the Governor, appointed
by the Legislature to withdraw said
funds, and $4,000 of the same was ac-
cOrdingly withdrawn and the best
possible arrangement made to secure
the balance.
All the individual depositors were fully
provided for and paid, most of whom were
Of the laboring classes of this city, on
whom the loss or delay Of their deposits
would have fallen with peculiar hard
ship-a fact that cannot be predicated of
many other banking institutions in this
city against whom very little has been
said, and from which the public may draw
their own deductions.
Further, the State has received fifty
nine per cent. of its claim in cash, and be-
NlAEs thtiG II wv CllSf -ilN0 pei NGill INV
in the hands Of proper authorities to be
paid, making in the aggregate eighty-four
per cent. of the claim. In addition 10
which there is some three hundred thou
sand dollars assets out of which to make
the balance-to say nothing Of other
claims held by the State as a guarantee
for full payment.
The LATE PRESIDENT.
The republication Of this card in
the Memphis Ledger is accompanied
by the following correction:
"The above does not incnde any intei~
est, but is based on the original tranSac>
ton. The twenty-five per cent. alluded
to should have stated been 9CiU shortly
be in the hands of the proper authorities"
Mr.. Rutter also gave to the Mem
phis appeal the following addition
al information as to the disposition
and present status of the "school
fund -
at amounted originally TO S6IS,o00.
In addition to the $4,000 drawn out
by the State officials, the bank turned
over to them S2S,0O0 in Tennessee Ncu-
rites making total Of S36S,O00 drawn
ont, and leaving the bank owing $3.50
Ol0 on the fund. To secure this the
bank now has twenty-five per cent of |
The amount in cash 1862 500 which it is
ready to pay over S259,O00 in available
property and bills receivable, and tn e |
State still holds the securities Of the !
bank for 100000, which are now in
suit"
This statement of Mr.. Rutter
shows. what has been suspected, |
that the Tennessee National Bank |
of Memphis got this so-calIed
school fund" with the understand
ing that it was to be used as an or
binary deposit. 1t is a pity Mr..
Rutter did not go on and tell how
this arrangement was effected, and
by whose advice and counsel the
scven-thirty bonds into which gold
recovered from the Bank of Tennes-
see WAS converted, were deposited
in his bank as ordinary public
money. There is something rich