Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-10-29
AsPEcImEN OF wHITEwAsHING.

kSPECIBIEN or WITHDRAWING.
Wchave shown that the Radicals in
the Legislature of 1866 took the ''school
fund from ''the keeping of the Governor
and Comptroller, where it had remained |
fifteen months in perfect safety" and |
| placed il where il soon found its way into |
what Gov. Brownlow long afterwards de
clared was IAN irresponsible, insolyent |
bank at Memphis, y just where they pro-
yided by law it should go. Now let us
see what these self-same Radicals did TO |
| recover the s'school fund" when the char |
acter of this bank in which it had been de- |
posted became publicly known. The
'Tschool fund.- was turned over to the
President of the Tennessee National Bank
of Memphis by Treasurer Stanford on the
9th of June, 1866. r. S. Parham, sat
tolney- at-law,n and the special lobby
agent of that bank, swears that Samuel
NJ. Arnell, james Mullins, David A. Num-,
VIM Wines, Thomas J. Cypert, w. X,
Hall, John A. FusOn, Wilson Duggan, j.
S. Mulloy, ]. f. Sinclair, S. X. N. Pat
ton, and F. s. Richards, all then members
of the Legislature, y "did personally adj
wise r. L. Stanford, I" the State Treasurer,
to deposit this fund in the Tennessee Ma
tional Bank of Memphis On the 4th of
December, 1866, Mr.. Bosom offered in the
Senate a resolution making an imperative
demand ON the State Treasurer to report
to the Senate the public money deposited
by him, as Treasurer of the State, in the
fiscal agency, or other banks of this
State, and that he also report TO
the Senate as Superintendent OF
Public Instruction, the condition of the
school fund, and its interest, known as the
7-3O United States securities, and in what
bank he has deposited them Gf any as
special deposit" The rule was suspended
and the resolution adopted 1t thus ap-
pears that as early as the first days of De
cember, 1866, there were TumOrs pointing
| 10 Inc loss Oh inc Stlibpi luIiil. Oli ilAC
10th of December, a report from the
Treasurer, bearing date of the It'll, was
presented to the Senate, in which he stated
that the $50 United States securities (of
third series) belonging to The school fund,
, together with the accrued interest thereon,
are on deposit in the Tennessee National
Bank at Memphis, and are returnable TO
the Treasurer, as Superintendent OF Public
Instruction. in bonds of the same series. "
= On December 10 the Governor sent mes
sage to the Legislature stating that the
previous week he had for the first time in
, | his life '1earned that the Treasurer of the
, State had loaned this fund to one of the
E Memphis banks, without any consulta-
I ton with any of the State officials
: | at the capitol, and even without
their knowledge" and he remind
, ed of the Legislature that their Claw is
exceedingly lame, or its provisions looking
to the safe keeping of this sacred fund
have not been complied WITH and invit-
: inc their ''early and vigilant attention TO
4 this subject" But the most remarkable
, feature Of this message is that where he
says: u intend no reflection on the
I bank, as all banks have right to borrow
and loan money in their legitimate opera
, tons, thus plainly implying that This
+ borrowing of the school fund by the
. | Tennessee National Bank of Memphis,
was a Legitimate operation It IS true,
he protested against the seCresy main
r tanned by the Treasurer, who loaned this
sacred fund without consulting him.
There is no censure Of any body for this
transaction, and he is very particular TO
notify the Legislature that he 'intends no
reflection on the bank He mildly adds {:
True, there We're three national banks in
: this city, with which it could have been
. divided out; but it is for you, gentlemen,
who turned this money over to the Urea
surer, to look after its safety" ''The
subject matter of the message was refer
= red to the Committee on Finance and
= WAYS and Means, but if that committee
took any action or recommended anything
-, on the subject, we have been unable TO
discover it from the journal 1t appears,
however. that Mr. Trimbe, who was a
member of that committee, offered a reso-
luton on Dec H., authorizing the Gov
ernor 'fo take prompt and decided meas
ures to recover the school fund, which, it
is ascertained, has been distracted IRON
its place of custody, and for this purpose
" to be clothed with full and plenary powers
to use all the means which, in his judg-
ment may be necessary and proper. > This
resolution was adopted by both houses,
and under its authority the Governor, who
had informed the Legislature that it was
their duty to look after the safety of this
fund. sent Messrs. Bosom and Spence, of
the Senate, and Elliott and Norman, Of
the House of Representatives, 10 Memphis
to get this "sacred fund.- and bring it
' back to Nashville On their return this
committee made the following report;
: NASHVILLE, Dec. 10, I866.-Gov. ".
G.. BroWnlOW-Sir: The committee APP
c pointed by the Legislature to proceed to
. Memphis TO investigate into the condition
@ and security of the school fund OF the
State, deposited by the Treasurer in the
Tennessee National Bank at Memphis,
respectfully present That inthe discharge
c of the duties entrusted to them, they at
once proceeded to Memphis and presented
the Trcasurcr's drafts on the Tennessee
National Bank for the amount deposited,
Z and were met by the President Ofthc bank
in a spirit Of manly candor exhibiting an
T. carnestness to furnish the committee with
. the condition of the bank and the evil
: dence of its ability and purpose to meet
at once the demands of the committee.
! The committee scTutiniZed the condition
s of the bank, and was impressed with its
sovcncy. The final arrangement between
the committee and the bank resulted in the
j prompt payment by the bank of the sum
T. of 1916, O52 60, twenty three bonds of
- State for 81 900 each, and satisfactorily
arrange for the payment of the balance
w BOssON,
W SPENCE,
= W. \. ELLIOTT,
p JOHN NORMAN.
T. Here was withdrawing after the most
+ approved style And why was it done
? Mr.. George r. Rutter, the late President
l of the bank. tells why In a letter dated