Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-04-18
rapldly = gaalble- consistent win safety to

nieznoranda, must be similarly and promptly /
:. The records must be perfected, ana after 4
ward kept 30, In accordance with the instruc- /
/ tions furnished.
i5ed, and stockholders reall qualified TO serve
must be appointed and sworn In. ]
D NO further dividends can be permitted |
until the bank has recovered from the critical l
condition in which II has become involved by I
the irregularities that have characterized its
II is Impossible to reconcile the oaths of the
directors and the cashier In hisquHrterly re-
| port with the facts as shown by the books OF
the bank and The examiners report. The i
Comptroller desires TO afford The Association 7
an oppurts1uit to recover itself and is unwil-
ling TO close the bank, as he is fully entitled 10
do, without giving all connected with il an /
opportunity 70 escape from that public CEN /
sure which would be Justly passed upon them I
were the bank summaFily suspended. it VIII, 4
however, be his duty 10 have the bank re-eX-
amined at an early period and to appoint
| receiver unless in good faith greatly i'm 4
proved s1ate Of Affairs Is found to exist, with /
just confidence that the present grieyous II
regularities will not be sJlfe red 10 occur again.
Very respectfully, .
~ Deputy and Acting Comptroller.
To s. Morgan, Cashier Tennessee National l
Bank, Memphis. Tennessee. (
! This letter shows every violation Of 1
law and every irregularity of manage |
1nent were plainly and explicitly brought 4
| to the notice-Of the bank, and that warn !
| ing was given that a full compliance I
with all the requirements of the law
could not be avoided by the officers Of
the bank rs-. a |
WITHOUT FENDANGERINF IT'S EXISTENCE. /
The notice to the bank to make good /
! its reserve of lawful money is given in /
unmistakable terms, and the next step
to be taken depended upon thecOmpli |
anee Of the bank with this demand
On the first Monday of October fol- |
| lowing, within the three weeks from the |
date of the letter, the regular quarterly
report of the bank was made, and attest
ed by the Oaths of the cashier and three
directors of the bank. This reports hOwed
the amount of lawful money on hand at
that date 10 be Sl54, 746, while the amount
required for revenue was STA, ,31S, show
! ing surplus of $40, ,42S.
In this particular, then, the bank
/ promptly complied with the law, and
1 the Comptroller was consequently pre-
cluded from taking any steps toward
the appointment of receiver on this
ground.
Meanwhile the large deposit of funds
I in the bank belonging to the State of
| Tennessee became
THE SUBJECT OF LEGISLATIVE INQUIRY
and eventually of legislative enactment. /
\ committed of the Legislature visited
| the bank, took all its funds and received
| the obligations of the bank, for the bal
ance, payable by instalment. The ma
| turity of the first of these bills found the
bank unable to pay. The note was pro-
tested, the hank was obliged 70 suspend.
An agent was sent to investigate and
report the facts. One of the circulating
notes was protested and a receiver was
! appointed, as provided in section fifty of
/ the act, about the first of March, 1867.
Relative TO
THE EAPP0INTNENTO OF WILLIAM A. HILL
as cashier of this bank, the following
statement is made: After the letter of
/ September 18th was written, Mr. RUtteF,
the PresideHtOf the bank, visited Wash
ingtOn-I think about the last of Sep
tember or the first OfOctober. He stat
ed that he was dissatisfied with the cash
ier, and asked me If l could recommend
a suitable man for the place In think
ing over the men whom l knew, who
would be likely TO be qualified for such
= nnsition, the name of William A.
Hill occurred to me. had little or no ac-
quaintance with him personally, but be
was highly recommended by a number
of respectable firms as well as individ
uals, and his testimonials had been filed
with me in support of AN application for
some position connected with the Ma
tiOnal banks.
/ -, AMONG HIS TESTIMONIALS "a
were letters from Drexel d Co, Jay
Cooke & Co, Hon F. r. BrunOt and
Hon. T. nj. Howe, and all referred to
his experience and qualifications as a
banker.
/. / submitted these letters to Mr.. Rutter,
and at his request sent for MIR. Hill, and
so brought the two men into cOmmuni-
cation. This was the extent of my
agency in furnishinga cashier for the
Tennessee National Bank. l had no
interest whatever in Mr.. Hill's going to
Memphis further than this: L believed
him TO be good man, and hoped he
would be able to get the bank in better
shape and manage it with more skill
and prudence than had been shown by
his predecessors.
He was pledged to bring about a re-
form, and so far as my knowledge goes
did his best to accomplish it. He went
=. to Memphis, according to his own
testimony, early in October, but did not
become cashier until the last of No
vember, and had been in that position
only about three months ~
WHEN THE BANK SUSPENDED.
/ appointed him as receiver, because /
regarded him as honest, capable and
weH qualified by his knowledge of the
, affairs of the bank, to fill that position,
to which may be added the fact, that I
knew no other man in Memphis whom
| could appoint. Through all the per-
n plexities and embarrassments attending
= the settlement of the affairs of the bank,
II have never had any reason to believe
? that Mr.. Hill did not act with extra hon
D esty and good faith, 1t was never ques-
D toned but onOe TO my knowledge, and
then wrote to Mr., Thomas b. Smith,
n agent of the State of Tennessee, appoint
; ed by a special act Of the Legislature, to
= settle the claims held by the State against
| the bank, and the man Interested above
+ all others in the honesty and correct con-
duct of the receiver, and his reply con-
1 firmed my good opinion of Mt, Hill.
Ell His letter also explains why so long
gi time elapsed before the affairs OF the
bank were entirely closed up, and the
receiver discharged, That letter is hereto
: appended, marked h.
: During the whole period, Mr.. MeCul-
loch,
SECRETARY OF THE TREASURY, WAS
7 CONSULTED MOO ETs
: on every important point, and nothing
/ of any moment was done without his
9 approval, and, at this distance of time, !
: think can say, With truth, that every
e thing was conducted properly and IN
!, order.
: !. The foregoing is plain statement of
Q facts, which cannot successfully be ques-
!, toned, sustained as it is by official
!, record and documentary evidence.
I If this statement il trpe, everything
y i'm the shape Of testimony which comes
ie in conflict with it must be discredited
and rejected (; and if it is true, tits clear
'r that the gqnfptfollef left Hnperformed
ofl no duty which deEolved upon him under
a the law.
.. The testimony taken before the COM
Tnittee ON other points is not such evil
$ depoe az wqnld he admitted before any
"a properly oonstitgted tribpnal, It IS made
lp up of gossip, hearsay, etc, aid proves
nothing. All intimations, however, re-
n fieeting upon my official integrity are
ar met by q filll and explicit denial have
d never received, directly QF Indirectly
ce money 0f
n. PROPERTY FOR THE PERFORMANCE Oh
=. ANY OFFICIAL DUTY,
= or for retaining from the performane,
Sc Of any duty, or for any favor which
no had In my power 70 grant in conse
ar qpenee Of my official position, and 1 d.
"a -, not know aud do not believe that any
be subordinate In the employment Of thii
II, bureau has, directly or indirectly, re
=; cetYed money or property for ofiieia
x, faVafs, w fgE the exercise OF infaenee
A.. real or assumed, with the head Of tn,
Igs bureau, in, behalf Of any parties or ap
IL plicants whatever, liks4Aaal z t4lAla-
IN IN On the contrary, / have sought con
ck tlnuously TO seryethe GoVeEnpoent faith
Srtt fully 10 the best OF my ability. in Al