Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-02-11


nessee National Bank Of Memphis
by Treasurer Stanford on the 5th
Of June, 1866. R. S. Parham, at
Iorney-atlaw" and the special
lobby agent of that bank, swears
that "SamueI NJ. Arnell, James
Mullins, David A. Num-, VIM.
Wines, Thomas j. Cypert, w. X.
Hall, John A. Fuson, Wilson Dug
gan, J. S. Mulloy, j. F. Sinclair, s.
X. N. Patton, and F. S. Richards,
all then members of the Legisla-
ture," did personally advise r. Il.
Stanford TO deposit this fund in
this bank. On the 4th of December,
1866, Mr.. Bosom offered in
the Senate a resolution making
an imperative demand on tho
Treasurer to report to the Senate
the public money deposited by him,
as Treasurer of the State, in the ifs
cal 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 7-30 United States
securities, and in what bank he has
deposited them Gf any as spe-
cial deposit" The rule was suspen-
ded and the resolution adopted. 1t
thus appears that as early as the
first days of December, 1866, there
were rumors pointing to the loss of
the school fund" On the 10th of
December, report from the Urea
surer, bearing date the 7th, was
presented to the Senate, in which
he stated that 'the 7-30 United
States securities (of third series)
belonging to the school fund, to-
gether with the accrued interest
thereon, are on deposit in the Ten
nessee National Bank at Memphis,
and are returnable to the Treasurer
as Superintendent of Public Istruc-
ton, in bonds of the same series.
On Dec. 10 the Governor sent a
message TO the Legislature stating
that the previous week he had for
the first time in his life "learned
that the Treasurer of the State had
loaned this fund to one of the Mem
phis banks, without any eonsulta.
ton with any of the State officials
at the capitol, and even without
their knowledge" and he remind
ed the Legislature that their claw
is exceedingly lame, or its pro-
visions looking to the safe keeping
Of this sacred fund have not been
complied with, and inviting their
"early and vigilant attention to this
subject" Butth most remarkable
feature Of this message is that where
he says: a intend no reflection
on the bank, as all banks have
a 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 legiti-
mate operation" 1t is true, he
protested against the secrecy
maintained by the Treasurer" who
loaned this sacred fund" without
consulting him. There is no cen :
sure of any body for this transac-
ten, and he is very particular to no
tify the Legislature that he " in
tends no reflection on the bank"
He mildly adds 4" True, there were
three national banks in this city,
with which it could have been d.
vided out; but it is for you gentle
men, who turned this money over
to the Treasurer, to look after its
safety" The subject matter of
the message was referred 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.. Trimble, who was a member Of
that committee, offered a resolution
on Dec, II, authorizing the Gov
ornor to take prompt and decided
measures to recover the school fund,
which, it is ascertained, has been
distracted from its place of custody,
and for this purpose to be clothed
with full and Plenary powers to use
all the means which, in his iudg-
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 ofthis fund, sent Messrs. Bos-
son and Spence, Of the Senate, and
Elliott and Norman, of the House
of Representatives to Memphis to
get this Sacred fund" and bring it
back to Nashville. On their return
this committee made the following
report:
NASHVILLE, Dec. Il, lSGG.-Gov. W.
6. Brownlow-Sir (: The committee ap-
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
present That in the dis
charge OF the duties entrusted 70 them,
they at once proceeded to Memphis and
the Treasurer's drafts on the
7 Tennessee National Bank for the amount