Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-02-23
HISTORY OF THE SCHOOL FUND.
What 1t Is. and What 1t Is Not.
How 1t was Returned.
A Plain statement Of Facts.

| D. y
From the Memphis Appeal, Feb. IS. ~ <
| Notwithstanding the elaborate reports
of legislative committees, the proclamaS
lions of Gov. Brownlow, and the state
ments of such newspapers as the Press
and Times, of Nashville, the matter OF
! the school fund is not yet understood by
the public. The truth is that the $685.
900 stolen from the Tennessee National
Bank was not part of the original
school fund, but was really remnant of
the capital Of the State Bank, repre-
senting not more than two-thirds the
amount returned to Brownlow by the
escort under Maj Gen. Upton. That
officer thinks the gold receipted for by
him to Mr.. Fisher, at Augusta, amounted
to $3.50 600, which, if invested in 5-20s
at the time of its delivery in Nashville,
would have made the snug sum of S942,-
500, instead of -S6lS,250 reported by
Brownlow and his Legislature, and
which was stolen by their Radical cead-
tutors. So that after all, neerly one mil
lion dollars was filched from the State by
the party in power.
This much by way Of preliminary.
In 1888 the Bank of Tennessee was
chartered. In the "Acts' for that year
we find in Chap. evil, "Anact to establish
a State Bank, to raise a fund for internal
improvement and aid in the establishment
of o system of education" the second
section of which reads as follows:
"The whole Of the School Fund, /
whether the same is vested in the pres
ent banks in the State or in the hands of
the Superintendent of Public Instruction,
or in the hands of the County Agents or
other persons, except so much as may
have been vested in any works of internal
improvement as well as the proceeds of
the Ocoee lands, shall constitute part of
the capital of the Bank of Tennessee"
Shortly alter the passage of this act
the bank went into operation. Up to
1878 there was no very thorough in |
vestigation of its affair. In the latter
year committee of the Legislature was
appointed for that purpose, whose res
searches were extended over several |
weeks, and resulted in the finding of some |
mistakes in its management. 4 report in |
accordance Herewith was made, when |
the Legislature orderd that the Bank |
should enter up the sum of 81 100000 to
the credit ofthe school fund and deposit |
with the State Treasurer certificate to |
that effect. From the "Code" we extract
the following paragraphs bearing upon
this:
1916. The whole of the Common
School Fund shall continue in the Bank of
Tennessee where it is by law invested.
"947. This fund consists l. OF one
million five hundred thousand dollars,
deposited in the Bank of Tennessee, for
which certificate of deposit is filed with
the Treasurer, as Superintendent Of
Public Instruction" '.
And in this condition the fund res
manned up to the time of the evacuation
of Nashville, on the 23d of February,
1862, when the bank assets were re-
moved and finally carried to Augusta,
Georgia, where, q few weeks after the
a copy of the following note
reached the Cashier in charge, Mr.. John
A. Fisher, who at once made ready and
turned to Gen. Upton tho school fund
and archives of the bank. and S650,0O0
in gold-what remained Of about $685.
600 in possession Of the institution when
it evacuated its premises in Nashville,
and all thai was left to represent its active
capital.
[ooPT.
GRENADA, Miss, May s, 1S65.-James
7. Dunlap, Comptroller, Joel Z. Battle,
Treasurer, j ohm E. A. Ray, Secretary of
State Of the State of Tennessee You
ill ra1,rn tbo orob;uoa oftbn G+oE, 20 |
the Capitol at Nashville, at the earliest
day practicable. You will also inform
the officers of the Bank of Tennessee that
my advice to them is to return the assets
of the bank to the banking house in Nash
vile at once. The assets of the bank
are the property of the people of Tennes-
see, and ardently desire that they
should be restored to them.
IsHAM G. HARRIS, Governor.
OF the S650,000 in gold thus returned
to the State authorities by the advice Of
Gov. Harris, nothing was heard until the
message of Brownlow of October, 1865,
Several months after the receipt Of the
money, announced that "a careful exams
iuation of the assets captured "a straightS
out falsehood) in Georgia, made by a
committee Of competent men," showed
the fund in coin to be only SAG, 7l9 70, |
just $203,2S0 80 less than the sum &C
tually receipted for.
This was the first loss Of the bank
funds of which we have any account;
but Of which there has not been the
least investigation. In addition to which
there was, it is believed as part of the
bank assets, State bonds amounting to
more than Sl,500,000 representing the
bona tide school fund of the State, of
which no account has ever been rem
dered, making the frauds more gigantic
than was at first supposed.
The SAG, 719 70, in gold, reported by
BrownlOw, was, by his suggestion, or
dered sold and the proceeds invested in
5 30 bonds, which (6lS, 250) was after
ward deposited in the Tennessee Ma
tional Bank, hOcus-pocused from the
people and into Radical pockets-all, ex>
cept 500 1000 in currency, used, by q
order Of Brownlow, in payment
of the interest on the State debt.
From this we learn that the report Of
Senator 4. V. S. Lindsey, as to the
school fund, is correct; that the state
ments and reports of Gov. Brownlow,
first, last and all the time, are incorrect /;
that the legislature is befogged as to the
school fund, and that the Press and
Times charges against the Democracy
and Gov. Harris are without foundation
in fact or reason. We also find that, be-
sides the sums stolen from the Tennes-
see National Bank, and that paid out as
interest on the State debt, more than
100000 in gold has been made way
with, together with State bonds, amount
ing to Sl,500,000, the actual school fund
Of the State.
SISTERS STRANGE REVENGE.