The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-14
HULDURD'S DEFENCE.
The Ex-Comptroller Of the Cur
rency on Himself.
Affairs Of the Tennessee National
Bank Of Memphis.
Not Influenced by the One
Horse Carriage.
HIS FULF1LMENT OF THE LAW.

HIS FULF1LMENT OF THE LAW.
WASHINGTON April 13. 1872.
Comptroller Hulburd' s defence OF himself against
the conclusions or the Banking AMI Currency Com.
mittee OF the House is given below 1t was pre-
scnted to the Secretary OF the Treasury ana not to
the committee, and is made oath belt j. Frank
lin Bates, Justice Of the Peace at Washington
In the year 1866, early IN the month OF August
tlOnal Bank OF Memphis
PAID FOR oNE-HoRsE CARRIAGE
for which was negotiating in TINS city. His doing
this was unexpected by me, and l think unpre-
medtated by MIN. 1t was very soon after the
OF the Office devolved ON me as the Deputy and
Acting Comptroller. l attached no especial slgnlh-
10 events saSs a. ans what
ever. In The latter part or August III the
same year. NOT very long , after the transac,
affairs of the Tennessee National Bank or Memphis
were not in good CONDITION, and sent an examiner
on the 24th. 25th and 26tn OF the month ana his
port was received at the department on the 30 OF
marked sA.n This statement EXHIBITS a failure on
the part OF the bank to comply with several import
NUMEROUS IRREGULARITIES OF MANAGEMENT
which required correction. 1t seems to be assumed
that suppressed this report. and that refused to
bank, and that this failure TO perform my duty was
in consideration OF the present had received from
the President or the bank. The charge Is this Or 1t
is nothing To this charge reply that
l DID NOT SUPPRESS THE REPORT
ay VIII appear hereoiter to the anu appontmen
or q receiver-a reference to the law necessary in
order TO determine upon what grounds receiver
tlonal Currency act provides for the appointment OF
. receiver to wind up The affairs OF bank Tor 0
guage OF the law on this subject Is as Iollows:-
On becoming satisfied specified in this act, any
n Is e. ee Of As s %
rency may forthwith appoint receiver, &C
This is the only ground specified IN the National
Banking law upon which ,arecelver may be appoint
ed forthwith. There Is no allegation In he EXamin-
ers report That the bank had failed refused to pay
It's circulating notes. In fact the entire circulation
OF the bank at that time was only 100000, while the
Examiner states the lawful money in the bank DE
1913, 527, a sum more than sufficient to
REDEEM EVERY DOLLAR OUTSTANDING.
The appointments or a receiver on TINS ground was
therefore impossible. and the charge or failure OF
duty IN this respect could be made and entertained
only by one essentially ignorant OF the provisions
OF law on the subject
to be deficient In the sum or $2l2S2. The law
the subject OF reserve as follows ast clause sec
ton 31):-
shall competent FOR the Comptroller of the Cur.
s ~ ssa hs VI money
citation shan fail FOR thirty days good
troler may with the the Secretary Of tie
association, az provided IN this act.
The Examiner states that the capital or the bank
essn u a IN large
The law Upon the SUBJECT Of the payment Of capi.
tai Is detailed IN seCliOn Is Of the National Banking
act.
1t will be observed that while this section makes
1t the duty OF the bank TO take certain
the full payment OF It's capital stock IL i'm
poses no penalty for failure to do so ana gives the
th n,,on M " oOpei Tue nank 10 take
these provisions the capital stock snail be reduced
below the minimum required by law, ana
to the reouirements OF Inc act within thirty davs q
receiver may be appointed. All the comptroller
Soulu 10 nen III suGn case as the one presented
upon the managers OF the bank to comply with the
provisions or the law. And so with all the other
ers dntv 70 notiiy the hanE of ira shortnomnnp d
to insist upon faithful compliance with all the re-
show now t this I1tv was perormea and 70 ur
nisn conclusive evidence that the report was not
Ae TO COPY Of ss letter
after careful examination OF all the facts presented
by the examner-taken from The records or thus
olnce-lS preSeh'sa;- rnrAsunr DEPARTMENT,
WAsIIINGT0y Sent * IsSs
sIRIn the report OF Examiner Of National Banks upon
BY him In his examination made on the s4h ms
Of the books Of the bank ise I : - 'A0"''S
Tss q M Ma .T acquires So to have been pad in on the
Of oe rse S The s Of bank
socK Il does nor appear that bese noies are nen, N anu
paid rromptn.c and ,h.w
sisent with the spirit OF the act - ' - '' A
Third-rhe reserve fund IL ded RI nt nv ovar po0 no
Fouh-Tne loan 10 tbs Naonal RAM ~ the wetroroii.
city, to be for BY The business Of
bank and under existina circumsances IN snecaiv Oh
iectiona able "s S'' - sp0s@'v W
Fnb-The amonnt M over dra axcessjva n On nm
degree beino nor can, Of ,ha
capital and over per cent Of he paid IN capia
Of the bank A' w. - 49, = 'A' pA' W 'Ap"A'
Sirt(ash items arc erbbfted M 3s1 aoa moi ,oro ha
one half OF which appear 10 be enttsd ~ he az
considered - = : ~ - - 'Se"S' ~
Sreuh-The records NJ tho banp verv
an paoes rn,irtvnne mi ,'yo az m ,n,,n M
resons of the ComptroIer az the Cnrrencv .nan
~ hich ia enclosed = " '' wy -
EighThe records do not show that Won have INV drec
tors M all and some Of those vhn orc snnaaas - ~ 49,
Tors and who have taken the oath az sch 10 not ~
books bank to possess the reouste ~
stock "
Nnth-No portion the net earnings of the hank an
II have hoenc