Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-06-17
Gevy BnowNLow AND THE

G0vs BROWNLOxv AND THE.
SCHOOL EUND.o
Every once in while Gov. Browhlyw
ilsunts in The face Of the people Of Ten
nessee the part he processes to have taken
IN regard 70 the ''school fund.- which
found its-way to the Tennessee National
Bank Of Memphis The latest effort in
this direction is . card in. the Knoxville
Chronicle, wherein he says:
''The first intimation that / ever had
of the removal of these bonds TO Mem
phis, was given me through letter re-
ceived by Senator Bosom from Memphis.
/ instantly sent brief message to the
Legislature, then in session, informing
that body of the fact and denounoing the
outrage" Ia r.s a
These repeated observations that lie
had no .knowledge of the disposition
made of the 'ischool fund.- by the late
Treasurer Stanford. viii impress the
reader with the fact that Gov. Brownlow
feels good deal Of uneasiness in regard
to the matter. Let us see if there is net
solid ground for the uneasiness he mani
tests. ~ '-a f eS2
The ''school fund " was turned over to
Geo. r. Rutter, President of the Tennes.
see National Bank of Memphis, by Trea-
surer Stanford, on the 5th of june, 1866.
r. S. Parhsm, "attorney at law, " end
the special lobby agent of the bsaIq
swears that "Samuel NJ Arne'l,
James Mullins, David A. Mum, VIM
Wines, Thomas J. Cypert w. K. Hall,
John A. Fuson, Wilson Duggan, j. S.
Mulloy ]. F. Sinclair, s. K. N. Patten,
and F. S. Richards, all tlsen members Of
the Legislature and State Government Of
the said State, did personally advise L.
L. Stanford, then Treasurer and Superin-
tendent of Public obstruction of the State
of Tennessee, to make and appoint the
Tennessee National Bank of Memphis, a
depository and fiscal agent for the West
ern District of the State, and to deposit
the funds of the State in said bank, in
Guiding the fund called the school fund,
amounting to $61s, $50, or Whereabouts,
in 7-90 United States Treasury notes I;
urging as reasons therefor, among other
things, that said bank was the political
friend of the State" aud that "the said
Treasurer did deposit the same in said
bank, according TO the said advice and
Recommendation of ssid persons. And
in his subsequent examination by
the Special Committee to in
vestigate the "school fund mat
ter, Parham testified that "these gen
tlemen, and many more legislators, ex-
ecutive officers and prominent politicians,
recommended the bank ns in their opinion
safe depository, as the friend of the
State Government, and as dcserv-
ing assistance and confidence"
These men were the confidential
friends, personal and political, of
the Governor. On the 4th of December,
1865, Mr.. Bosom Offered in the Senate a
resolution, which was adopted; making
an imperative demand on the Treasurer to
"report to the Senate the public money
deposited by himss Treasurer Of the State,
in the fiscal agency, or other banks of this
State; aud that he also report to the Sen
ate or Superintendent of Public Instruc-
ton, the condition of the school fund, and
its interests, known as the 7-30 United
States securities, and in what bank he has
deposited them Off any as special de-
posit.n On the 10Th of December repoI.
from the Treasurer, bearing date the 7th,
was presented to the Senate, in which lie
stated that the 80 bonds were on deposit
in the Tennessee National Bank Of Mem
phis, end were to be returned, Sin bonds
of the same series. On the same dsy
dec. 10) Gov. Brownlow sent a message
to the legislature statiugthat the previous
week he had for the first time
in his life '1earncd that the Treasurer
of the State loaned this fund
TO one of the Memphis banks, with
out any consultation with suy of the State
officials at the capitol, and even without
their knowledge" aud he reminded the
Legislature that their '9aw is exceedingly
lame, or its provisions looking to the safe
keeping of the sacred fund have not been
complied WITH" and inviting their ''early
and vigilant attention to this subject"
But the most remarkable feature of this
message is that where he says: 81 in
tend no reflection on the bank, as all
banks have a right TO borrow and loan
money in their legitimate operations"
thus plainly indicating thai this ''bor-
rowing" of the "school fund" by
the Tennessee National Bank of
Memphis was a 'leg climate oper-
alton" II is fyue, he protested, not
against the "oui age" but against che
secrecy maintained by the Treasurer"
who appears to have loaned this "sscred
fund" without consulting him. There is
no censure Of anybody for this transac-
ton, and Brownlow is very particular TO
notify the egislature that he 'intends no
on the bank, (which appears to
have been the political friend of his ad
fact of which we will not
insult him by supposing him ignorant.
BE mildly adds: "True, there were
.hree National Bank in this city with
which it could have been divided out but
It is for you, gentlemen, who turned this
money over to the Treasurer, to look after
It's safety" That is the manner in which
Drownlow denounced the outrage"
In his testimony before the School
Fund Investigating Committee in Febru-
Try, 1869, r. S. Parham, "attorney-at
aw" and lobby agent for the Tennessee
National Bank of Memphis, submitted as