Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1870-05-04

by Gen. Upton near Augusta, Georgia. and
that those who had it in charge were ar
rested and taken to Nashville as prisoners.
Now, have said that every dollar of
the school fund of Tennessee was lost to
the children of the State in this way and
such is the fact. 1t is true that there was
captured a little less than half million of
coin, which was taken to Nashville and
turned over to the State officers by order of
| the Legislature of Tennessee. But this
coin, which the Legislature undertook to
make the nucleus of q new school fund,
| was no part of the school fund of Tennes-
see. IL was the property of the bank. The
| school fend had no more claim upon it
than the note holders or any other credit
ors of the bank. The school fund was de-
posted in the bank in 1888, and was not in
| gold, but IN Tennessee State bonds. These
| bonds were sold for currency and the pro-
| ceeds We're made the basis of banking ope-
retions for about twenty-five years. The
| operations of the bank were heavy and di
versifed, such as dealing in cotton, broker
! age and discounting notes and bills. 1t al
80 bought and sold coin. The last report
of the bank before it's flight showed about
100000 of coin on hand. This sum was
reduced to about S445, 900 during its peri
CARNATIONS through Dixie. The most of
this loss of a quarter of million is ac-
counted for by the papers captured
| showing that it was paid out to the officers
of the bank and its branches-to the rebel
State officers, and loaned to the supporters
of the now lost cause.
have said that not one dollar of the
school fund of Tennessee was returned to
the State. OF what did the school fund
consist ? Not of coin-not of currency
not of bonds, or notes-simply of receipts
or certificates of deposit signed by thr Bank
of Tennessee, which still exist and are due
and owing. The school fund was simply
a bank account, or rather debt againt the
bank.
1.-The evidence of that debt still exists ;
and why does not the Bank pay it? The an
swer is, because the Bank is utterly ruined
worthless. If the Bank of Tennessee
was solvent every dollar of the school fund
of Tennessee would be safe. Now, who
ever is responsible for the ruin of the Bank
of Tennessee is responsible for the loss of
the school fund, Let us see how that is.
The Bank had done % thrifty business for
nearly twenty-four years, and in its official
report in 1862 showed assets 10 the amount
of nearly twelve millions of dollars. In
that year body OF men styling themselves
Legislature of Tennessee, met at the cap
itol, and after taking an oath to support the
Constitution of the Confederate States,
E proclaimed their allegiance to Jefferson
Davis and resolving that the Union was
and of right ought TO be forever dissolved,
, they were very soon seized with panic on
account of some grape vine dispatches from
Fort Donaldson. CONSERVATION was de-
picted in every rebel face. IL was not the
the day Of Judgment and the cry was Yam
kee! Yankee varied with Lincolnites
Lincolnites! Hirelings Negroes were
herded and driven South, valuables were
E hastily packed-tender infants with their
mothers We're hurried in hasty toilet, be-
yond the reach of the vandals. But in
their haste they did not forget the sacred
school fund! The assets were hastily boxed
up and carried South. The fugitive Legis-
lature left pell-mell and met at Memphis,
end there passed what had the form of a
law approving The carrying away of the
Bank OF Tennessee. When they left Nash
Vile bill was pending to apply the entire
school fund to the manufacture of arms for
the COnfederacy. | believe it passed into
the form of q law. During the year 1861 n
Confederate military board was created and
five millions of Tennessee bonds We're is
sued TO that board and receipted for on the
, books Of Gov. Harris. i believe that most
!, tof these war bonds Gas they are called were
sold to the Bank of Tennessee. Here, then,
j we find where five millions of the assets OF
the Bank was applied to the support OF
treason. The Bank proceeded, while in
7 the South, to receive Confederate money
and bonds for all purposes, so that when il
, was captured it had nothing remaining of
any value except the pittance of coin we
have mentioned, while its vaults were
! packed@Nyith Confederate promises to pay.
! Thus over ten million of the peoples mon
! ey were squandered! Thus was the Bank
I, OF Tennessee broken And thus was the
! sacred school fund of Tennessee forever an
INITIATED!
I Now the Legislature of 1865, in theiI
: commendable zeal to start new school
I fund upon the ruins or in the place of the
? old, did attempt to apply this captured coin
: to such purpose. Disregarding the rights
2 of noteholders and other creditors they de-
clared that the coin should constitute q
, school fund, and directed its sale and in
vestment. But suit was promptly insti-
/ tuted by the creditors of the bank and no
p LAWYER doubts the action of the Legisla-
ture, though prompted by noble zeal for
the education of the children of the state,
= will be declared void and the fund applied
: TO the payment of the debts of the bank.
4 II have no time now to go into q history
. of this abOrtive attempt TO start new
: school fund Eadmit that about 500, OOC
+ of il or about one thirteenth part, in
i amount of the fund lost by the rebels, ha,
: been lost by being deposited IN a bank that
failed. / DENY that the Republicans, az q
f party, are responsible for it. | deny that
: any proof has ever been made that any Re
: publican official ever received one cent o.
: the fund admit that there are unworthy
< men in the Republican, as in all other par
| ties, and that there may have been soms
! lolhx-futr a nj af,t,1a FaFaGantS madp nv ont.