Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1874-03-11
ABOUT THE ToRBETT ISSUE.


:. for other purposes the object of which
t was to force the State into rebellion. Or
4 the following day the military league will
: the Confederaey was formed and the mill
f tary forces Of the State were thereby
placed under the command of the rebe
military leaders. The 9Th section of the
) act, hrst referred to, authorized Governor
, Harris to issue and dispose of the
bonds of the State to the amount Of five
millions of dollars, the proceeds of which
were To be used by the Military Board
provided for in tile same act, in arming
and eqhipping the troops. The bonds were
issued and Gov. Harris compelled the Of
Ulcers OF the Bank of Tennessee, and of the
Union bank, and of the Planters bank, to
buy them. The proceeds of these sales
were placed in the Bank of Tennessee, to
the credit of the Military Board. In the
organizing and equipping of the troops
the said Board gave checks and drafts
for the war material payable at
the Bank Of Tennessee. The Of
ficers Of the bank finding that
the notes Of the bank issued prior to 9th
May We're not sufficient to meet the re.
quirements of the Military Board, issued
new circulating bills, which have ever
since been known as the "Torbettr OF
new issue of the Bank of Tennessee. A
suit is now being considered by the SUI
preme Court of the State at Nashville,
which, when decided, will determine the
legality Of the notes last referred to. The
facts disclosed in the record Of the case
have been agreed upon by counsel and are
as above stated. That agreement admits
the object of the Military Beard was to
equip troops to aid the rebellious States in
the war then fragrant. 1t admits in addi-
ton these important facts:
That the other officers and Directors of the
Bank of Tennessee knew that the Military Board
was organized for the purpose Of raising, armirg
anG eIu!ppEg troops and furnishing military
stores ana supplies IN aid of the rebellion then
Migrant against the nited States Government |
and that the money drawn from tie Bank upon
tue order and checks Of said Board was to be
used and was used for the purposes aforesaid. |
nat the ordinary and then issues of circulating
notes OF the Bank Of Tennessee and its branches |
were insufficient to meet the usual banking bust
ness OF the Bank in 1861, and drafts or checks |
drawn upon the Bank by the Military Board |
and that the Bank was comp 'led. in order to |
meet its regular business and the demands of |
notes now IN controversy known as the new
issue, of said Bank, and that said notes con-
shutting the new issue, were all put into cir |
cuiatlon after the 9Th Of May 1861, and for the |
purposes aforesaid.
The notes so issued amount according to !
the estimates of Mr.. Watson, Trustee of
the Bank, to about 81 SOC, goo. OF this sum,
",oOO of the notes were issued after the
officers left their banking house in Nash
vile to entrust their books and assets to
the protection of the Confederate armies.
The assets of the bank, according to the
estimate of the Trustee, amount to
100000, 80 If the Supreme Court hold
the new issue' to be valid and give the
holders the preference over all other cred
itors, as they claim, the Taxpayers of the
State will lose not only the one mil
lion Of assets Of the bank, but will be
taxed an additional $4,000 to pay off this
issue At the close of the war the notes
sold at five cents on the dollar, it being the
very general opinion that they were worth
less because issued in aid OF the rebellion,
and therefore declared void by the Amend
mentS to the Constitution, State and Ma
uonal. The bills are now held almost en-.
tirely by parties who bought them for a
mere trife.
The facts show, then, that the notes were
Issued by the bank in aid of the rebellion
and with the full knowledge Of the pur-
poses for which they were to be used, that
they passed into general circulation with
full knowledge of the circumstances under
which they were issued, and that the pres
ent holders are not in any sense innocent
purchasers in due course of trade. If these
notes are to be declared valid, and the peo.
pie are to be taxed to pay them, it would
be but just and equitable that the present
holders be paid only what they paid for
them. 1.-THE taxpayers Of the State are to
nave these fruits Of the rebellion packed
upon their back, it will only serve TO re.
mind them again, that the men who
brought upon them their burdens, trials
and sorrows are not the men best fitted TO |
help them out of them.
Our people may prepare themselves to |
pay this million and half of the rebel |
debt. The Court will so decide the case,
unless the indications thus far are very de.
ceptive. The Taxpayers can open their
purse strings for this ncw burden for we |
predict it will come.