Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1869-02-08
THE SCHOOL FUND.
4 Gard Grnnl MIR. Cherry, Presi-
dent Merchants National Bank.

MEMPHIS, TENS, February 6, 1859,
Editors Memphis Appeal:
have noticed IN your paper in the
published abstracts Of evidence before
the School Fund Investigating Commit.
tee at Nashville, and again In a com.
municatiOn signed R. 8. Parham, dated
9Th inst, ailCsiOAs to the Merchants
National Bank, and its application t.
the Legislature to be made fiscal agent
for the State for the Western Division.
l desire to make a short statement OF
our connection with the application, etc.
During the session OF 1860, a resoIu.
ton or bill vas introducedin the Legis-
laIure appointing certain banks in Ezst,
Middle and West Tennessee fiscal agents
for the receiving and disbursement Of the
funds of the State. This applied more
particularly to the arising from
State taxes in it's various forms. Il was
intended that the collectors of State
revenues should deposit the same at
short intervals in the bank so designated
as the depository for his Division Of the
State. when the same was Immediately
SUBJECT to the drafts of the Comp,
troller and Treasurer Of the State.
One object sought to be accom-
plished by the change Vss that the State
could control and get the use of the
revenues much sooner, and at less ex.
pense in this way than under the old
system of requiring the collectors of rev.
enue scattered Ovel the State to settle
ones Or twice q year. This bill or reso.
luton Is hrst passed or introduced
named the First National Bank of Meus
PMS SIS tho depository for West Tsnnes
see. Some Of my personal friends
in the Legislature mad the Merchants
National Bank substituted In place Of
the one named. The measure was thus
pending in the Legislature (Ssnate, l
belieYeG when charges or iusinuations
were made against the officers and IL
rectors Of this bank. When informed
OF this, l went to Nashville to refute
these charges, which wss ddue to the
satisfaction Of the friends of the meas-
ure, and the bill pssssd, creating the
agencies as above stated, naming the
MERCHANTS National Bank for West
Tennessee. When the measure came up
in tho House there wers two other
banks from West Tennessee actively at
work through their friends to bs su6sti.
tuted in place Of the Merchants' Ma,
tiOnal Bank. There Wss also strong op-
position to the bank named as the de-
pOsitory for Middle pennesses. It soon
became apparent that If the measure
was passed and the agencies named by
the Legislature, the Merchants National
Bank would be Tetainedss the depository
for West Tennessee. Those who had
been working for the other bank changed
their programme, and went to work to
the bill, using the plausible Grgu.
that the measure would be q redso
ton by the Legislature on the officers o!
Tho EFnEa vzhnaa nnstaa ~. man - n,Fl.-a
and disburse the revenues. The combl-
nation thus formed, with the argument
above mentioned, and other aDpk!.
d.iOes and arguments wrought Quite
a change on several members, and the
measure was voted down or postponed
in the House, leaving the matter as IL
stood under the former law. 1t was az
ter this hal the Treasurer of the State
was authorized to deposit all the funds Of
the State in such banks as he might Sc
lect. TIE movers OF this scheme knew
at the Tina what banks would be Sc.
vas not st Nashville when
the scheme was oonsqmmated, The as
or ~intiRfatiOn, that the Mer-
National Bank, or any person for
il, made any gifts, or loans, in any man.
1er, either directly or Indirectly, for the
purpose Of securing the passage Of this
bill, or the selection OF the Bank as such
depository, is false in every particular.
On the contrary l was told, by friends,
l could accomplish this object in
that way. Ny reply was, l did not want
1t In that manner, and If the members OF
the Legislature did not believe the meas-
lre a good one, and our Bank worthy OF
the depository, / did not want 1t. II
have avoided saying anything about
this matter heretofore, as 1 believed it
would all come to light sooner or later.
/ will add that It was moi intended by
The measure pending in the Legislature,
40 1t passed the Senate, naming the Mer-
1hants National Bank as the fiscal agent
FOR West Tennessee, and which was
down in the House, to touch the
funds OF the State, then In the
Treasurer's hsnds, at all, and wss only
Intended to resolve and disburse the cur
rent ordinary revenues Of the State, as
before mentioned.
Very Respectfully,
w. h. CHERRY.