Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-10-28
CIRCULATION.
Bank note account, old
issue. g, GO, JOG %
Bank note account, Tor
bett issue. ........... 1,OSl $50 90
Bank note account,
slO,sO9,637 As

Bank note account,
fractional currency IO6,l2s Cos 4,sl6, 79i 60
To,aI.........................s1O,sO9637 As
In addition to the above assets, the bank
holds 5000. OSI in Confederate bonds,
commons and treasury notes, which are not
classed as assets of the bank. Most Of these
notes. bonds and coupons were acquired by
the bank after its removal from Nashville in
1862. The assets of the bank of various
kinds were converted into these securities,
and have consequently diminished its avail
able assets to this extent, namely: IS, O52,
OSl Almost all the United States currency
has been loaned under the instructions of
the Chancery Court, and secured, as direct
ed, by real estate.
The real estate of the bank unsold con
sists principally of the banking houses and
lots at Nashville, Sparta, Shelbyvllle and
Rogersville, two lots In Nashville, one III
Chattanooga, and tract of land III Arkan-
sas. Frequent efforts have been made to
sell the above property, but no offer was
made satisfactory to the Trustee OF Board
of Directors The nominal value OF the
real estate, as given in the above table oil
assets from the old books, is STAG, $50 II.
At present it would not probably sell for
over 100000.
The gold of the Bank returredto the State
has never been turned over 10 he Trustee,
and consequently has not been classed
among the assets of the Bank This
amounted to SAG, 10 20. TWAS converted
in 1866 into 100 United States bonds,
amounting to $685. The Trustee SUE
gests in his report the passage of such .
law and also the passage Of law fol. burn
ing the cancelled notes of the Bank in the
presence Of the Board of Directors the
Governor and Clerk of the Chancery Court
at Nashville.
The act for winding up the Bank gives
| the school fund the preference, in the dis
| tribution of the assets of the Bank over
| all creditors and it is the duty Of the Trus-
! tee to carry out this provision of the law
| and the deed of trust until the courts shall
| decide otherwise. A suit has been insti-
| tuted by the depositors to declare this part
| of the act unconstitutional and void, and
| that part of the deed of trust made in pur-
| suance of it void. The courts decided
| against the depositors sustaining the validity
| Of the act and deed of trust, and giving
priority to the school fund over all credit
ors of the Bank. An appeal has been taken
| from this decision to the Supreme Court.
| Should it reverse this decision and declare
that the assets are a trust fund for the ben
eft of creditors, and that the school fund
is no creditor of the Bank, and entitled to
no priority, then the Trustee of the Bank
becomes but a trustee for these creditors,
and the entire assets of the Bank will be
exhausted in payment of the debts due
| them.
Under such a decision, a most important
question will arise as to who are creditors
| The holders of the new or Torbett issue
will undoubtedly lay claim to be creditors
Another important question will arise
whether note-holders will have priority
over other creditors, the act for winding
up the Bank having put all creditors on the
same footing