Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-11-07
FAVORING THE COOKIES.
singular Treasury Management-Cn-
SECURED Government Loans TO the
First National Bank.
Prom the New NOrk IflDuhe'

From the New York Tribune.
WASHINGTON, Nov. Soon after
the First National Bank of this city
suspended. it was stated In the Tribune
that fractional currency to the amount
of 500, 900, in the denomination of fifty
cents. had been transferred to that
bank by Secretary Richardson without
security or collateral. This was denied
by the evening organ Of the Admins
tration, under cover Of an interview
with Treasurer Spinner, and the Trj-
bl,1e again made the charge, and said
the transfer was protested vainly
against by Mr.. Spinner. Secretary
Richardson has never denied
the facts, and they are abun-
dainty susceptible of proof.
Not long after the charge was first
made. a receiver for the bank having in
the mean time been appointed by the
government, an examination OF the as
sets and Liabilities of the bank was
made. and the receiver officially pro-
claimed the result. From his figures
it was shown that government money
to the amount of S2S7,7S2 was placed
among the liabilities. To secure this
sum there were on deposit in the Treas
ury United States bonds amounting to
100000. 1t thus appears that the
Treasury Department had deposited
with the First National Bank SlS7, 7S2,
without a dollar Of security. 1t now
seems that Treasurer Spinner, six days
before the failure, made draft on the
bank for about $4,000. This draft was
not paid. and only one or two days be-
fore the failure, he made another draft
for the same amount, and this shared
the fate of its predecessor, which much
incenscd Gen. Spinner. The ECealRg
Star, the paper that denounced the first
statement of the Tribune, tonight
prints the following in its news col
umns:
1T has been asserted that the house
of jay Cooke & Co., winch borrowed
from the First National Bank Of this
city nearly 100000, has since its fail
IRE withdrawn 100000 in Central Pa
cifc Railroad bonds, and deposited
them with the Secretary Of the Treasu-
nv as security for the 100000 advanced
by the Secretary few days before their
failure The creditors Of both the
First National and Jay Cooke & Co. 5
Bank are complaining Of this, saying
they would like to know why the Gov
ernmont should be preferred creditor.
They say if the Cookies have 100000
it belongs to them, and that the Gov
eminent has no right to deprive them
of their pro rata dividend.
Treasurer Spinner to-day said that
Secretary Richardson had Informed him
that securities had been deposited to
protect the government, so that Of the
story seems to be true. On application
to Mr.. Stanton, receiver Of the bank,
that gentleman said he understood that
the Treasurer had been furnished with
security sufficient to protect 1t against
loss. but he said he did not know where
the security came from. In answer tc
the question as to whether it came from
the assets Of the bank, he said une-
0uivocally that it did not, and that he
would treat the Government the same
as the other creditors Of the bank. Tho
security could certainly not have been
taken from the assets Of the firm o.
JAY Cooke & Co. to pay the debt OF
another institution with which the de
positors Of the firm had nothing to do
and it is therefore a subject Of genera
conjecture here tonight, who furnish
ed the 100000 to secure the Govern
ment. Mr.. Richardson has claimed
that the Government IS a preferred
creditor, but the Solicitor Of the Treas
ury and the Attorney General hav'
decided otherwise.