Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-03-07
THE BANK OF TENNESSEE.
It's Assets and the Amount Of HNeW
Issue" Outstandlng-EHect q the
Supreme Couri. Decision.

/
Supreme Couri. Decision.
eNew Issue" was the live topic Of con
versation yesterday, not only in FINANCIAL
| circles, but at every street corner. Rumors
Of the most exciting character prevailed
as to the jump in prices taken
/ by the resurrected currency, and
| the enormous profits supposed to have been
| realized by the operators who had staked
! so heavily on the decision of the Supreme
| Court. That decision is given in full else
where, an4 it was simply the province Of
| the professional newsgathers to ind ont
what its legal effest would be, how much
'new issue" was outstanding and how far
the assets of the hank would 60 toward
| satisfying the nOuihOlders.
A UNION AND AMERICAN reporter call
ed upon Judge Watson, Trustee Of the
bank, and was kindly furnished With the
| following extract from a statement Of the
condition of the institution, which he is
now preparing:
LIABILITIES OF THE BANK.
"The largest liabilities Of the bank are
for its notes now outstanding. These
amount to S1,404,4S6. Of this amount
there was supposed to have been issued
South, and for which the bank is not liable,
SI77, 900, which would leave Sl,z27,4S6 Of
notes Of the bank now outstanding, almost
all Of which is supposed 90 be the new =.
sue. But large amount of the notes of
the Bank of Tennessee have been lost or
DESTROYED. The usual estimate of ban
kers is that when banks have been long in
existence, ten pei cent. Of their circulating
notes will never he presented for redemp-
ton, in consequence Of being lost or De-
D., l. Il hac
in existence forty years, and the amount Of
its lost and destroyed notes would fully
equal the estimate.
The circulation Of the Bank Of Tennes-
see on the 1st Uf September, 1862, was
S4,T10,666, but this was above its average
circulation. Suppose its average cireula-
tion to have been SS,OOO,OOO, a loss of ten
Der cent. on that would be $4,000. De
Quoting this fiOm the 1,22T, ,4S6, the
amount shown BY the books Of the bank TO
be outstanding would leave 1927, ,4S6, as
the entire amount Of the notes of the bank
that would be presented for redemption.
sit is thought by some that a much
larger amount of notes have been issued by
the Bank of Tennessee than have been re-
corded on its books. There is no evidence
that the books are not a correct record of the
there are almost conclusive evidences that
they area correct record. When notes were
issued by the Bank of Tennessee; the num-
bers were always recorded on the books Of
the bank. When the State began to receive
the notes Of the hank for taxes, l furnished
the Comptroller, at his request, with the
numbers on the notes issued after May 6,
1861, which are known as new issue.
There has never been, as 1 am informed by
brokers, any other notes offered for sale
than those containing the numbers reported
by me to the Comptroller, which is almost
conclusive evidence that there are no other
notes Of the new issue in existence.
Furthermore, the plates Of the bank from
which the notes we're engraved were in the
hands of the Philadelphia engraving COM
pany, and it is well known that no notes
were engraved from these plates subsequent
to May 6, 1861, and for many months prior
to that time. think that we can, there
fore, rest assured that 1927, ,4S6 is the entire
amount of outSts nding circulation, old and
new, to be redeemed"
The facts seem to be very clearly stated
by Judge Watson. OF the entire amount
shown by him TO be outstanding, no broker,
banker, or dealer, believes that more than
$500, 600 is 'sneW issue;" this is, in fact, the
highest estimate made, some of the we'll
posted putting it as low as 100000. So
there is no foundation whatever for the
Wild rumor that several millions" are
afOat.
ASSETS OF THE BANK.
And now as 10 the assets Of the bank.
The reporter called upon Clerk and Master
Baxter, the commissioner appointed
by the County Court to assist in
winding up the institution, and ascertained
that its assets are about as follows:
sos, 600 in Tennessee bonds; $4,000 in
United States bonds and currency; $780,
600 Of notes, UnquestiOnably secured by
liens and mortgages, upon which DEGREES Of
foreclosure have been taken and are now
in process of collection; real estate in
Nashville and elsewhere, worth say $780,
900; claims in the hands Of attorneys
at points where branches existed,
to a very large amount, say 100000, but
''mighty uncertain as to how much will be
realized therefrOm; last, but not least, the
S61S,0O0 of School Fund, which, by the de-
cisiOn of yesterday, is held to be part Of the
assets of the bank.
1t will be seen that the assets are more
than sufficient ID cover the amount of out
standing 'snew issue"
The Trustee has suits to the aggregate
amount Of Sl50, 300 pending against debtors
of the bank who rendered "neW issue in
payment. Under the decision of the Su-
preme Court, the Trustee will have to re-
ceive new issue for these debts.
A full and final report, showing the con-
ditiOn Of the bank, will be made BY Com
missioner Baxter at an early day-prObably
this week.