Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1871-12-03

stock, proceeded to provide for the DISPOSE
ton OF the proceeds, or profits Of the bank
IN the following manner: One hundred
| thousand dollars should be annually sci
apart for the use Of common schools, and
the faith of the State was pledged to the
annual appropriation of that amount t
common schools; the sum Of eighteen
thousand dollars annually to the aid o.
county academies, for thirty years, if the
bank should continue In existence so long
and the faith ofthe State was pledged for the
annual payment of that sum and the
balance OF the annually aecruing dividend
should be applied to the extinguishment Of
the interest on the bonds of the State ISSUED
under that act, or any other act. This aci
was declared to be an act to establish a
State Bank; to raise a fund for interna
Improvement, and to aid in the establish
ment of system of education. 1t must be
regarded as con.emporaneous construc-
ton and execution of the ninth and tenth
sections, article 2, of the Constitution
OF the State, adopted in 1854
the Legislature believing this 10 be
the best mode of raising a fund
for the purposes mentioned in the act, and
in the Constitution. The bank was &C.
cordingly put in operation, and the capital
furnished from the sources aforesaid, In
part, and its corporate existence continued
by regular succession Of Presidents and
Directors, organized according to the char
ter, doing business By discOunting notes,
dealing in exchange, and doing general
banking business, till its liquidation was
provided for by the Legislature in 1855,
Acts, chap. %. ..-.-.-.
Compliments state that while said bank
was so legally organized, and doing bust
ness as aforesaid, to wit: in the years 1853,
1850, 1860, 1881, 1852, while the President
and Directors Of said bank had the legal
right to receive deposits, complainants did
deposit In the said bank at Nashville, and
in the Branch Bank at GAINESVILLE, and in
other branches, in gold and silver coin, and
lawful currency, valid bank notes, such
notes as said President and Directors might
lawfully receive by the terms of the char
ter, and by the laws Of the land, and the
said President and Directors of said bank,
did, as they lawfully might do, receive the
said gold and silver coin, currency ami bank
notes, on deposit, and did enter the same
as said deposits on the books Of the bank
agreeing then and there, on the deposit and
receipt Of the same, to pay over to the par
ties depOsiting, a sum of money equivalent
TO the amount deposited, on the order Of
the depositOrs, or on due and legal demand
thereof, by the parties, or their lawful repre-
sentatives. And the said depositors, and
representatives, do charge that the State of
Tennessee did, for the whole period of the
existence of said bank, authorize, sanction
and confirm, the receipt of moneys and
lawful currency, by the said President and
Directors of the said bank, the said parties
depOsiting the same agreeing with the said
President and Directors that they, the said
President and Directors, should appropriate,
use and loan the same, according to the
usages Of banking institutions, and their
charter; and that the said President and
Directors should pay over the same to the
said depositors, or their representatives,
when demanded, according to the charter
and the usages Of banks. And complain
ants, depOsitors, do charge that the Legisla-
ture Of the State of Tennessee, declared,
and agreed, that the whole of the
capital stock of said bank, to-wit: the COM
mon school fund; the surplus revenue, and
the sum raised by the sale of the States
bonds, should be, and was, pledged by the
State of Tennessee for the payment Of the
several sums deposited from time to time;
and that compliments, as such de-
pOsitors, did accept thu proposition made
by the State of Tennessee, by and
through the charter aforesaid, and did make
their deposits in said bank, on the faith Of
said funds specifically pledged, to wit The
said five million of dollars. And complain
ants, depositors. do charge that the Legisla-
lure Of the State of Tennessee did under
AXE and agree to make up any deficiency
IN the school fund in the surplus revenue,
Dr. in the sums raised by the sale of State
bonds, and to indemnify depositors and all
other creditors against all losses by reason
Of any such deficiency; and complainants
lid deposit their money with the President
md Directors Of said Bank of Tennessee,
lnder said engagement made by the State
If Tennessee, that it would indemnify them
lgainst all loss by reason of such deficiency
n the sums pledged.
And now your compliments charge that
he State Of Tennessee never did make up
md furnish to the President and Directors
# the Bank of Tennessee the said capital
If five millions Of dollars, and that large
existed at the time complainants
Until said bank was placed in liquidation by
vet of the Legislature, in 1855; and that
he State Of Tennessee did withdraw from
he hands Of the said President and !
Directors large sums Of money, from /
ime to time, TO wit: The sum |
# -- dollars, in the progress of |
he corporate existence Of said bank; thus |
and Withholding from COM |
lainantS and other creditors, the capital |
took which the State had specifically /
lodged for the repayment of those who
ad deposited their money with the bank
md that the State did receive and appro-
rate to public purposes. the whole of the
rofits derived from the loan of the money
fcomplainants and other depositors. And
charge more specially, that
he Legislature of the State of Tennes-
&c did, by enactment, withdraw from the
ands of the President and Directors of
nd institution, the sum of ($446, 1912
,ur hundred and forty-six thousand, seven
mdred and nineteen and 72-100 dollars
coin, and withhold the same from COM
ainants and other creditors, which was
Ultimately part of the capital stock of
lid bank, upon the unfounded assump-
on, that such coin was part of the Com
ION School fund, capable of being identi-
ed, and seized as such school fund when
truth, no such identification of said
uds, as common school funds, could
: made in the Golfers of said
INK. No part of said coin could be
aced to the School fund, or funds
Used by the sale of the States bonds.
the surplus revenue. But the
hole was placed in the hands of the Bank,
'mmingled, in making a consolidated fund
the hands of the President and Directors,
I'd pledged for the payment of the debts of |
depositors,a and other credit
s. COmplainants state that the Legislature,
, act of 1865, chap. 2S,did provide that the
ank of Tennessee should no longer do
lsiness as banking institution, but should
placed in a state of liquidation; that for
is purpose President and Directors be
pointed, who should make an assignment
all Of the property % the Bank of every
in trust, for distribution, as fol-
ws:-the United States securities, known !
seven-thirty bonds, in the hands of the !
Overnor, Comptroller and Secretary of
ate, amounting to the sum Of six hundred
I'd eighteen thousand two hundred and
nllorc ho;nn ba Of ha /