18093. Tennessee National Bank (Memphis, TN)

View Charter #1225 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1225
Charter Number
1225
Start Date
March 25, 1867
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
a162695e711b88df

Response Measures

None

Receivership Details

Depositor recovery rate
17.3%
Date receivership started
1867-03-21
OCC cause of failure
Losses
Share of assets assessed as good
11.2%
Share of assets assessed as doubtful
88.8%

Description

The articles report that the Tennessee National Bank of Memphis was closed/suspended and placed in the hands of a receiver in late March 1867. Coverage attributes the suspension/receivership to a protested note, deficiency in lawful-money reserve, and complications over large State (school) funds deposited at the bank; no contemporaneous run on the bank is described. The bank remained in receivership (reported among failed national banks in June 1867 lists), so this is a suspension that resulted in closure/receivership. OCR errors in some articles corrected (e.g., 'Menaphis' -> Memphis; 'Geo. Butler' and 'George R. Rutter' appear as presidents in differing pieces).

Events (4)
1. June 5, 1865 Chartered
Source
historical_nic
2. March 21, 1867 Receivership
Source
historical_nic
3. March 25, 1867 Receivership
Newspaper Excerpt
The Tennessee National Bank has been placed in the hands of a receiver. Individual depositors are safe, but it is understood that the State of Tennessee will loose heavily.
Source
newspapers
4. March 25, 1867 Suspension
Cause
Government Action
Cause Details
A protested note and deficiency in lawful-money reserve after the Legislature's committee withdrew/pressed State (school) funds; an examiner/Comptroller action led to appointment of a receiver.
Newspaper Excerpt
MEMPHIS, March 25.-The Tennessee National Bank, Geo. Butler, President, has been placed in the hands of the Receiver.
Source
newspapers

Newspaper Articles (20)
1. March 26, 1867 Nashville Union and Dispatch Nashville, TN
Article from Nashville Union and Dispatch, March 26, 1867

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THE "SACRED" SCHOOL FUND. The Tennessee National Bond of Menaphis Refuses Payment-Rufter Declines to Come to a Consultation on the Subject-State Officials B neti claries-The Sacred Fund in Bad Way. From the Memphis Bulletin, Marell 21. The Tennessee National Bank closed yesterday at 2 o'clock. There have been various surmises and exaggerated reports as to the probable cause producing is sesulf. On inquiring we learn that theam mediate circumstances which oceanic are substantially as follows Abou filne months ago, be arrangement and pay of certain State officials, the Tennessee National Bank became the depository of the State funds for West Tennessee. A plic months ago Governer Brownlow, who as as all along acquainted with the fact, seized with a virtuous fear lest the fu is deposited in West Tennessee, by consen the officials for a consideration, should its lost, and the blame be justle laid alapria door. He therefore blowed aprillin State Treasurer, by calling the attention of the Legislature to the matter. That body of hungry patriots immediately dispatched a committee-ofwhich Spence, the President of the defunct Exchange Bank of Tennessee at Murtreesboro' was Chairman -to Memphis to demand the immediate payment of all the State funds, including the School fund. The officers of the Tennessee National Bank, it appears by the report of the committee to the Legislature, immediately paid over to the aforesaid Spence committee the sum of four hundred thousand dollars, and executed notes for the remainder of the State deposit. Subgenuently, S. Watson, Esq., assignee of the State Bank of Tennessee, at Nash ville, filed a bill in chancery to restrain the officers of the Tennessee National Bank from paying out any more of said funds to the Legislative committee, alleging that al of was to him School the said fund, funds, largely properly composed assigned the for the benefit of the stockholders of said bank; and recently an order to this effect was served on George R. Rutter, Esq. President of the National Bank in this city. Last Saturday one of the notes of the Tennessee National Bank of this city, given to the Legislative committee, fell due, and the President, George R. Rutter, Esq., act ing under the advice of the best legal counsel, refused its payment. Yesterday a dispatch was received from officials at Nashville to the effect that "matters were so complicated" that the presence of George Rutter, Esq, was desired there in consultation. It is understood that he declined to go there to hold a "consultation," and in consequence we stall doubtless be favored with the presence of some of the State officials, for said consultation, in a few days. It is due to the officers of the bank to say that all the ordinary demands have been met, and that it is scarcely likely that a single depositor will lose a cent by the closing of the bank. It seems probable, from all we can now learn, that if the State authorities push the payment of the notes given the Legislative committee, there will be no settlement of the difficulty except at the end of an interminable law suit.

2. March 26, 1867 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, March 26, 1867

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Miscellaneons Despatches. PROVIDENCE, R. I., March 25. Hon. Henry Butler, of Warwick, died suddenly this morning. He was the Democratic candidate for Congress in the Western District, but withdrew from the canvas last week. POTTSVILLE, Penn., March 25. On Friday night five Irishmen attacked the house of Patrick Gallager, near Shenandoah city, intending to rob him. Gallagher fired on them, killing one and wounding another. The wounded man is in jail. ST. LOUIS, March 25. The damage to the bridge and trestle work, etc., on the Union Pacific railroad, eastern division, by the late flood has been repaired and trains are now running through. The new bridge over Solomon Forks, thirtyseven miles west of Fort Riley, was completed on the 22d, and the locomotives now reach 450 miles west of St. Louis. The track is being laid at the rate of one mile per day. DETROIT, Mich., March 25. The Board of Trade have abandoned the cental system in consequence of the action in neighboring cities. The Legislature concluded its session to-day. The eight hour bill was lost. MEMPHIS, Tenn., March 25. The Tennessee National Bank has been placed in the hands of a receiver. Individual depositors are safe, but it is understood that the State of Tennessee will loose heavily.

3. March 26, 1867 Nashville Union and Dispatch Nashville, TN
Article from Nashville Union and Dispatch, March 26, 1867

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7-30, 2d and 3d series London advices of the 25th inst. quote United States at 741. At Frankfort the was 78 and at quotation 5-20,8 Paris bought 84}. Exchange on New York was by the banks yesterday at par, and i sold at 1 premium. There was but little doing in uncurrent FEE money, and we heard of no change in rates. Bank of Teanessee was inactive and the rates were nominal at 25c buying aud 32c selling. Union and Planters' bank notes were in good demand, the former at 90e, and the latter at 86c. Southern bank notes were dull at the advertised rates. Washvillecorporation checks were bought at 10c and sold at 8c discount. Tennessee bon is sold in New York on the 20th inst. as follows $7000 ex. conpons at 664c, $10,000 ex. coupons at 66&c, $20,000 new at 644c; and on the 21st $5000 new at 643c. North Carolina bonds sold at `50@49c for ex. coupons and new, and Virginia bonds at 60@57c. We print in this morning's UNION AND DISPATCH an article from the Memphis Bulletin in regard to the Tennessee National Bank and the school fund. The bank has not closed its doors (suspended) as stated by the Bulletin. A letter from a reliable source states that the bank was paying small checks on Saturday. We have the authority of Mr. Watson for saying that he has filed no bill in regard Mr. to the so-called school fund, and that with Rutter could not have been served the process referred to by the Bulletin. its The bank suffered the note given by officers in part consideration of the school that fund to go to protest, and the pretense Mr. Watson is claiming the fund or any portion of it, is t forth by Mr. Rutter as sort of justification for permitting to be protested, after assurance that it would positive his some note having bepromptly Norman, given We understand that Judge have met. the acting Comptroller, and others done to Memphis to see what can be imgone with the matter, but there is a general that whatever the legislative com- is pression did not secure of the school fund when mittee It will be remembered that from the lost. legislative committee came back Tennessee Memphis they whitewashed the to exNational Bank to such an extent as they good deal of remark. Why It is cite this a very few could understand. matter did improbable that this school fund that denot get into the courts, and reflect will yet will be made which will have envelopments credit upon parties who tracks." deavored but little to "cover up the moccasin The New York Times says in its money of the 21st instant: article An impression was attempted the quarterly to statement be Mon- made among the brokers banks, that to be made up temporary on of the week, national April 1, is but to we create are quite a well nation- aspressure day for so money far as the New York no occasion city for alsare sured that, concerned, there calling will in be of money, quarterly much of day ease in making of up the their law. They less a want the full standard fifteen millions in exnow returns of hold in the to required lawful money per in centage their net which deposits domestic they and are cess required_to exhibit with the tendency of the in favor of circulation, every quarter that the recurrence city. It is barely statement may other a this exchanges of the in quarterly nearly demand possible for money York in make the temporary of the extra country, obtains but notir among New some movement of parts An room speculators impression that up an before export the 1st of May of gold coin may (supposed) heavy credits for to besoon made May for gold travelers account remittances of the spring the Pariz Exposition, the amount foreign divi- and of the usual this spring and We see no present imports marketed United States 5-20s. this circula are dend on give much importance to plausible, we reason conceding it weeks of the coin tion:but within to less than six of to $24,000,000 be in gold disburse- less than belong now ment for-the by May the dividend Treasury to European of 5-20s, of free to supply holders. which leaving any from two-fifths $14,000, demand to $15,000,000. for gold: and European this is on States inter- the assumption other export be that reinvested no part in of other the United securities. est will The New York Post of the afternoon of the 21st inst. says: banks throughout statement the country in ten have country days to make As the their steads quarterfrom these balances of are the New more bank profitable York balances than legal count reserve equally there balances is a in this city, as tenders. For while

4. March 26, 1867 New-York Tribune New York, NY
Article from New-York Tribune, March 26, 1867

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5308 1800 TENNESSEE. BY TELEGRAPH TO THE TRIBUNE. MEMPHIS, March 25.-The Tennessee National Bank, Geo. Butler, President, has been placed in the hands of the Receiver. Individual depositors are safe, but it is understood the State of Tennessee will lose heavily.

5. March 27, 1867 Nashville Union and Dispatch Nashville, TN
Article from Nashville Union and Dispatch, March 27, 1867

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London advices of the 26th inst. quote United States 5-20,s at 743. Exchange on New York was in good demand yesterday. The banks were buying at one-tenth premium and selling to premimm. There was no changei incurrent money and very little doing. Bank of Tennessee was very quiet at 25c buying and 32c selling. Union and Planters' bank notes were in good demand, the former at 90 and the latter at 87c. Southern bank notes were dull at the advertised rates. Nashville corporation checks were dull at 10e discount. Tennessee bonds sold in New York on the 22d inst. as follows: $10,000 new at 64ge and $7,000 new at 641c. North Card lina bonds sold at 49c. The Tennessee National Bank at Memphis was placed in the hands of a receiver on Monday, The ostensible reason for this step is that the bank was deficient in the amount of legal tender reserve required by law. It appears a government agent has been watching the bank for some time and pounced upon it Monday. A dispatch from Memphis says: "Individual depositors are safe, but it is understood that the State of Tennessee loses heavily." Judge Norman and Messrs. Bosson and Elliot, who went to Memhpis Saturday to look after the remainder of the "school fund," returned yesterday, and we learn that the Judge is hopeful that a considerable portion will yet be secured from the bank. It is not improbable that the securities of the Treasurer will be proceeded against to recover the amount of his bond, $100,000. Whether anything can be got from this source remains to be seen. We have no doubt the Treasurer's securities will contest the matter, and some rich developments may be looked for. As the matter now stands the school fund seems to be in an exceedingly precarious condition, if not absolutely lost to the State. We now learn from S. Watson, Trustee of the Bank of Tennessee, that he did have a bill of discovery filed in December last with a view to aid the State authorities in securing the so-called school fund deposited in the Tennessee National Bank, and on the 22d of this month an additional bill was prepared, the more effectually to accomplish this object. The bill required Mr. George R. Rutter, President of the Tennessee National Bank to show how he came in possession of the United States 7-30 bonds constituting the school fund, and what disposition he had made of these bonds, as well as other facts bearing upon the question. This bill has found its way to Memphis some how, and was served upon Mr. Rutter a few days ago. But bill has ever been filed to restrain the Ten 1. nessee National Bank from paying the e school fund, or any part of it, or any of the proceeds of it, to the Legislative committee. The following will show the stocks of cotton on hand at the various ports on the 1st of September, 1866, the Feceipts and , exports to foreign ports since that date and the stocks on hand at the dates designated

6. March 30, 1867 The Bolivar Bulletin Bolivar, TN
Article from The Bolivar Bulletin, March 30, 1867

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From the Memphis Bulletin 23d. Closing of the Tennessee National Bank. The Tennessee National Bank closed yesterday at 2 o'clock. There have been various surmises and exaggerated reports as to the probable cause producing this result. On inquiring we learn that the immediate circumstances which occasioned it are substantially as follows: About nine months ago, by arrangement and pay of certain Statu officials, the Tennessee National Bank became the depository of the State funds for West Tennessee. A few months ago Governor Brownlow, who was all along acquainted with the fact, was seized with a virtuous fear lest the funds deposited in West Tennessee, by consent of the officials for a consideration, should be lost, and the blame be justly laid at his door. He therefore blowed" on the State Comptroller by calling the attention of the Legislature to the matter. That body of hungry patriots immediately dispatched a committee-of which Spence, the President of the defanct " Exchange Bank of Tennessee at Mufreesboro" was Chairman-to Memphis to demand the immediate payment of all the State funds, including the School fund. The officers of the Tennessee National Bank, it appears by the report of the committee to the Legislature, immediately paid over to the aforesaid Spence committee the sum of four hundred thousand dollars, and executed notes for the remainder of the State deposit. Subsequently, S. Watson, Esq., assignee of the State Bank of Tennessee, at Nashville, filed a bill in chancery to restrain the officers of the Tennessee National Bank from paying out any more of said funds to the Legislative Committee, alleging that all the said funds, largely composed of the School Fund, was properly assigned to him for the benefit of the stockholders of said bank; and recently an order to this effect was served on George R. Rutler, Esq., President of the National Bank in this city. Last Saturday one of the notes of the Tennessee National Bank of this city, given to the Legislative Committee, fell due, and the President, George R. Rutter, Esq., acting under the advice of the best legal counsel, refused its payment. Yesterday a dispatch was received from officials at Nashville, to the effect that matters were 80 complicated that the presence of George Rutter, Esq., was desired there in consultation. It is understood that he declined to go there to hold a "consultation." and in consequence we shall doubtless be favored with the presence of some of the State officials, for said consultation, in a few days. It seems probable, from all we can now learn, that if the State authorities push the payment of the notes given the Legislative Committee, there will be no settlement of the difficulty except at the end of an interminable law suit.

7. April 25, 1867 Nashville Union and Dispatch Nashville, TN
Article from Nashville Union and Dispatch, April 25, 1867

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# THE SCHOOL FUND. That confounded school fund matter is going to give us more trouble. I feel in my bones that it is. Your letter saddling all the blame on Stanford won't do. We will have to pack it during this gubernatorial election. We can't fasten all of it on Stanford and Rutter. I was doing so yesterday, when a mean Rebel cuss shut me right up by asking me: "Were not eleven Radical members of the Legislature feed to use their influence to have the school fund put, contrary to law, in the Tennessee National Bank? Didn't some organ of the Radical party get twelve thousand dollars for using its influence in the same direction?" I couldn't imagine how the fellow found out anything, and I was regularly taken down. When I came to, I said these were disloyal slanders, but the fellow dared the Radical party to have an investigation of the books of the bank to see who got money that was charged to profit and loss. He offered to bet me that half the leading Radicals in the State had borrowed money out of the Tennessee National Bank, or had got money given to them. Says he: "Some Radicals doubtless borrowed money for business purposes just as others did, but I would like to know when some member of the Brownlow family had dealings with the bank. I would like to know at what time Arnell got those eight thousand dollars, and then I could guess whether the action of the State Legislature and of Stanford was influenced by them. As it is, I have nothing to say about them, but I dare the Radical party to have a public investigation of the books of the bank." I am afraid, very much afraid, my indomitable Governor, that the public will believe we were all to blame in that school fund business. The public would not have minded it so much if it had only been the three hundred and twenty thousand dollars that the State lost, but you see when the Tennessee National Bank stopped, the Treasury Department of the United States got alarmed, and ordered all the collections by Federal revenue officers and other United States officials to be sent to Cincinnati for safe keeping. Of course the money thus sent away would not come back for a long time in the regular course of trade, and this draining of over one hundred thousand dollars a week from Memphis soon checked trade and brought about bankruptcies and general prostration. A great many people say if the Radicals had not got money from the Tennessee National Bank, they would not have had the school fund put in it. If the school fund had not been put in it the State would not have lost between three and four hundred thousand dollars. If the State had not lost half the school fund the Tennessee National Bank need not have suspended; and if it had not suspended our Treasury Department would not have carried off a hundred thousand dollars a week. If the Treasury Department had not carried off the collections, trade would have kept up better, our banks could have given accommodations better, and many bankruptcies could have been avoided. They will blame the Radical party, sure.

8. June 4, 1867 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, June 4, 1867

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receiver or money ceipt and to furnish for it the proper stamp. This obligation, however, like that of returning a civil answer to proper question, is governed by the laws of courtesy, and sanctioned by custom instead of statute. The undermentioned national banks have failed or are in proceess of liquidation, but their notes, being secured by Government bonds, are still at par, and in some instances a premium is paid for them by banks which have in view the sanction of an increase of their own circulation, and think that by holding the notes of a suspended bank they can secure an equivalent; but this is, or at least should be, founded on erroneous supposition: Venango National Bank, Franklin, Pa.; Tennessee National Bank, Memphis, Tenn.; First National Bank, Attica, N. Y.; First National Bank, Medina, N. Y.; First National Bank, Columbia, Mo.; First National Bank, Carendelet, Mo.; Merchants' National Bank, Washington, D.C. The Journal of Commerce referring to the status of business affairs says: The month closes amida general depression in nearly all branches of trade and commerce. It is probable that never before, during this quarter of the century, was there such a nniversal suspension of business engagements and business activity, except in connection with a monetary panic or a financial crisis. We do not regard this pause as utterly useless, and we are not without hope that it may be productive of great good to the country. While the expansion continued, and all classes of values seemed to be thereby enhanced, counsel was wasted, even warnings were disregarded, and lessons of wisdom fell upon listless ears. "To-morrow shall be as this day and much more abundant," was the thought in most hearts, if the sentence was not heard on the lip, and the whirl was too rapid for consideration or sober reflection. The revolving wheel runs more slowly now, and threatens to stop altogether. Those who were maddest in the day of excitement now question if their prosperity was real. Not a few would be glad to have as much of their supposed gains now in hand as would pay the tax on what was reckoned as last year's income; and those whose apparent increase still remains intact are restless and troubled about the future. We recall this description with a view of encouraging the despondent. Surely there must come no little good to the coun try out of the sober thought born of such an hour of quiet and freedom from specnlative excitement. Sensible men of all parties are drawn much closer together in such a season; and measures in which all but the unprincipled or fanatical can agree, rise in importan ce as it is seen that great material interests depend on the issue, while mere partisan questions shrink toward their proper insignificance. If this opportunity for sober thought is not wasted, the day of unity, and consequent peace and prosperity, will be all the nearer for the interruption. The money market continues moderately active, but the demand for capital is little less urgent than yesterday, and temporary loans are made upon acceptable securities at 5a7 per cent., mostly 5a6 per cent. for new contracts. Firstclass commercial paper is taken at 7 per cent. per annum discount, with but few exceptions above and below this rate.

9. June 11, 1867 The Evening Telegraph Philadelphia, PA
Article from The Evening Telegraph, June 11, 1867

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FAILURES OF NATIONAL BANKS. - The following is a list of National Banks that have failed, and are now in the hands of receivers, with the amount of circulating notes issued to each:The First National Bank of Attica, New York, $45,000; the Merchants' National Bank of Washington, D. C., $180,000; the Venango National Bank of Franklin, Pa., $85,000; the Tennessee National Bank of Memphis, Tenn., $90,000; the First National Bark of Newton, Mass., $130,000; the First National Bank of Selma, Ala., $85,000; the First National Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation, viz. : - The First National Bank of Carondelet, New Orleans, $25,500; the First National Bank of Columbia, New Orleans, $11,990, making a total of $832,490, which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the National Currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.

10. June 11, 1867 The New York Herald New York, NY
Article from The New York Herald, June 11, 1867

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Steward. Cornelius Vanof Smith Barker, Jr., and John H. Vanderbilt, Vice derbilt was re-elected President, W. ary. President, and Augustus Scheil, Secre banks that have The following is a list of national rs, with the Bive failed and are now in the bands of rec. First Na. amount of circulating notes issued to eac National, tional, Attica, N. Y., $45,000; Merchants FrankWashington, D. C., $180,000; Venango Nationa Tenn., lin, Pa., $85,000; Tennessee National, Memphis, 200; $90,000; First National, Newton, Mass., $130, First National, Selma, Ala., $85,000; First N tional, New Orleans, La, $180,000. In addition to these two banks have taken up their bonds and deposited lawful money in the United States Treasury to the amount of outstanding circulation, viz:-First National Carondolet, New Orleans, $25,500; First National Columbia, New Orleans, $11,990-making a total of $832,490 reverting to the government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Comptroller of the Currency for distribution. The Sub-Treasurer in this city reports:Total receipts $1,465,816 Total payments. $1,563,316 For customs. 229,000 Balance 134,015,419 495,000 For gold notes The Chicago Clearing House statements of the past two weeks compare as follows:Balances. Clearings. $11,540,292 Week ending June 8 $1,002,558 9,207,614 Week previous 992,819 The following is a statement of the value of the imports entered at the port of Boston during the month of May:Value. Species of Goods, Wares and Merchandise. Imports-Dutiable, entered tor consumption $1,411,579 2,544,749 Imports-Dutiable, warehoused $3,956,328 Total paying duty Free 289,188 Total imports $4,245,516 Merchandise withdrawn from warehouse for $1,727,877 consumption The earnings of the undermentioned railroads during May of this and last year compare as follows:1867. 1866. $329,078 $316,432 Toledo, Wabash and Western 365,196 333,952 Michigan Central Cleveland and Toledo 210,783 180,675 51,710 55,133 Virginia and Tennessee Atlantic and Great Western 451,447 459,370 A St. Louis journal says:or the notes of the old "Bank of the State of Missouri, " which went out existence in 1857, and whose currency was barred in 1860, there 18 still afloat about $60,000 worth. The now existing Bank of the State of Missouri, lately organized as the "National Bank of the State of Missouri" agree to redeem this issue together with all of their own afloat, now amounting to about $50,000. The receiver of the Cataract City Bank of Paterson, N. J., notifies holders of the notes of that bank that all such notes must be presented for redemption to the Treasurer of the State of New Jersey, at Trenton, on or before November 30, 1867, and that holders and owners thereof who fail to present the same will be barred from all right to have the notes redeemed.

11. June 12, 1867 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, June 12, 1867

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FAILURES OF NATIONAL BANKS.-The followis a list of national banks that have and are now in the hands of receivers, the amount of circulating notes issued each The First National Bank of Attica, Y., 845,000; the Merchants National Bank Washington, D. C. $180,000; the Venango National Bank of Franklin, Penn., $35,000; Tennessee National Bank of Memphis, Tenn $90,000; the First National Bank of Newton Mass., $130,000; the First National of Selma, Ala. $85,000; the First NaBank tional Bank of New Orleans, La., $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury 01 the United States to the amount of their outstanding circulation-viz. : The First National Bank of Carondelet, New Orleans. $25,500 the First National Bank of Co. lumbia. New Orleans, $11,990; making a total $582,490 which has reverted to the Governupon the return and destruction of equal amount of circulation will be althe disposal of the Comptroller of the Currency for distribution, according to the terms and conditions prescribed in the national currency net. subject to the same rules that governed the distribution of the amount origimally authorized by the act of Congress.-New 1 to

12. June 13, 1867 Nashville Union and Dispatch Nashville, TN
Article from Nashville Union and Dispatch, June 13, 1867

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change Bank Spence Making a New Investigation-More Villainy than Even He had Imngined-Rutter to Go to State's Prison, etc., etc. From the Memphis Avalanche, June 11th. The festering sore that sprang from the projects of Radical legislators to get hold of the State fund sacredly devoted to the education of the children of the State, and which resulted in the collapse of the Tennessee National Bank and the sudden disappearance of half a million dollars of that sacred fund, is now likely to be exposed to the scorn and execration of all honest men. The plan to authorize, by legislative resolution, the transfer of the common school funds to irresponsible hands, was carried out, and then the scoundrels who concocted the villainy, under threats of ruining the bank, black-mailed it to the extent of one hundred thousand dollars. This would have given a large sum to each Radical legislator, but it is supposed that there was no honor among these thieves, and that a number who voted for taking the school funds out of safe hands got nothing at all, and that a few leaders secured most of the one hundred thousand dollars. Several whitewashing committees have been sent here to make it appear that the bank was wholly to blame and to keep clear out of sight the shameful complicity of the Radical leaders. Nothing came of these committees. It wasn't intended that anything should come of them. They were to make the public suppose that some one connected with the bank, some officer here, some backer elsewhere, was the criminal. They neyer breathed a word of the infamous fact that one hundred thousand dollars of the school fund money had gone into the pockets of Radical members of the Legislature and Radical leaders closely connected with Brownlow himself. Why did they not tell the public who the guilty parties were? Why did they fear to let out the facts? Was it because they knew that such an expose would strip from the Radical party the grab of hypocrisy with which it has covered its corruption and deformity? THE INVESTIGATION NOW GOING ON. The Avalanche some time ago denounced the villainous part played by the Radical leaders, and now another Radical committee has been sent here to examine the affairs of the bank and exonerate the Radical rognes, who have over a hundred thousand dollars of the school fund in their pockets, by denouncing somebody else. The man sent here by Gov. Brownlow on this errand is Senator Spence. He has been examining the books and accounts of the Tennessee National Bank, and indicates the points to be arrived at by declaring, in conversation, that there was more develish rascality than he ever before imagined. He knows what rascality in the management of a bank is. He was at the head of a bank at Murfreesboro that failed under shameful circumstances, and ruined thousands. He now says there was "more develish rascality in the way the school fund was stolen than he ever before imagined." Innocent Spence He says he means to have Rutter sent to State prison. If he can do that nobody will suppose that Radical members of the Legislature were the concoctors and leading promoters of the villainy and profited by it. He means to have Rutter sent to State prison. Rutter was only the tool of others. He is now to be the scapegoat. Why don't he want to have those sent to State prison who were the originators of

13. June 19, 1867 Public Ledger Memphis, TN
Article from Public Ledger, June 19, 1867

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Failures of National Banks. The following is a list of National Banks that have failed and are now in the hands of the receivers, with the amount of circulating notes issued to each: The First National Bank of Attica, New York, $45,000; the Merchants' National Bank of Washington, D. C., $180,000: the Venango National Bank of Franklin, Penasylvania, $85,000; the Tennessee National Bank of Memphis, Tennessee, $90,000; the First National Bank of Newton, Massachusetts, $130,000; the First National Bank of Selma, Alabama, $85,000; the First National Bank of New Orleans, Louisiana, $180,000. In addition to these, two banks have taken up their bonds and deposited lawful money in the Treasury of the United States to the amount of their outstanding circulation, viz: The First National Bank of Carondelet, New Orleans, $25,000; the First National Bank of Columbia, New Orleans, $11,990, making a total of $832,490 which has reverted to the Government, upon the return and destruction of which an equal amount of circulation will be at the disposal of the Controller of the Currency for distribution, according to the terms and conditions prescribed in the National Currency act, subject to the same rules that governed the distribution of the amount originally authorized by the act of Congress.

14. October 10, 1867 Clearfield Republican Clearfield, PA
Article from Clearfield Republican, October 10, 1867

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NATIONAL BANKS SUSPENDED.-The following National Banks have passed into the hands of Receivers: Croton National Bank, N. Y. National Bank of W bitestown, Oneida county, N. Y. Atlas Bank, of Providence, R. I. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N.Y. First National Bank, Columbia, N.Y. Venango National Bank, Franklin, Pennsylvania. Merchants' National Bank, Washington, D. C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, Louisiana. First National Bank, Carondelet, Missouri. First National Bank, Selma, Alabama.

15. October 24, 1867 The Jeffersonian Stroudsburg, PA
Article from The Jeffersonian, October 24, 1867

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National Banks Suspended. The following National Banks have passed into the hands of Receivers : Croton National Bank, New York. National Bank of Whitestown, Oneida co., New York. Atlas Bank of Providence, Rhode Island. Unadilla National Bank, Unadilla, New York. Kingston National Bank, Kingston, New York. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank Medina, N. Y. First National Bank, Columbia N. Y. Venango National Bank, Franklin, Pa Merchants' National Bank, Washing ton. D. C. Tennessee National Bank, Memphis, Tenn. First National Bank of New Orleans Louisana. First National Bank, Carondelet, Mo. First National Bank, Selma, Alabama Mrs. Jesse Craig of Island Falls, Maine made, in six weeks this summer, 50 pounds of cheese.

16. November 22, 1867 Indiana American Brookville, IN
Article from Indiana American, November 22, 1867

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List of Broken National Banks. The following is a list of the National Banks that have suspended and passed in. to the hands of receivers: Croton National Bank, New York, National Bank of Whitestown, Oneida county, N. Y. Atlas Bank of Providence, R. I. Unadilla National Bank, Uuadilla, N. Y. Kingston National Bank, Kingston, N. Y. Farmers' and Citizens' National Bank, Brooklyn, N. Y. First National Bank, Utica, N. Y. First National Bank, Medina, N. Y. First National Bunk, Columbia, N. Y. Venango National Bank, Franklin, Pa. Merchants' National Bank, Washington, D C. Tennessee National Bank, Memphis, Tennessee. First National Bank, New Orleans, La. First National Bank, Carondelet, Mo. First National Bank, Selma, Ala. The notes of these Banks are not affect. ed in value.

17. August 18, 1869 New-York Tribune New York, NY
Article from New-York Tribune, August 18, 1869

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# THE TENNESSEE DEFALCATION. Yesterday Judge McCunn granted a writ of habeas corpus in the case of John H. Rutter, whose arrest on a charge of having been concerned in the appropriation of certain school money belonging to the State of Tennessee, and intrusted to his keeping, has been given in THE TRIBUNE. The writ having been served on Superintendent Kennedy, he took the prisoner before Judge McCunn. Owing to a pressure of business the hearing in the case was adjourned until to-morrow morning, the prisoner, in the meantime, being remanded to Police Headquarters. Mr. J. W. Jefferson. a Director of the First National Bank of Memphis, Tenn, desires the publication of the following: To the Editor of the N. Y. Tribune. SIR: In your issue of this date, when reference is made to the arrest of George R. Rutter, the article leaves the impression that said Rutter was President of the First National Bank of Memphis, which is not correct, said Rutter never having been connected with said First National Bauk in any manner whatever. The article should read. "Tennessee National Bank," Mr. Rutter having been President of this last-named institution at the time of its suspension, some two years ago. No. 53 Beaver-st., N. Y., Aug. 17, 1869.

18. August 18, 1869 The New York Herald New York, NY
Article from The New York Herald, August 18, 1869

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Musical and Theatrical Notes. Mr. J. Lester Wallack and family and Mr. and Mrs. W. J. Florence arrived in- the steamer Scotia yesterday afternoon from Europe. The former brings a number of new comedies and dramas from London, one of which will be the opening sensation at the Wallackian temple, while the latter brings three or four new plays from the British metropolis and one or two dramatic sensations from staid old Holland, with which he proposes starring from here to California. Brignoli, the "sitver-voiced" tenor, is at Long Branch snifing the "salt sea" air, prior to an operatic tour across the plains to San Francisco, whither he intends winging his way at an early day with an operatic troupe of his own. The Wednesday evening concerts of Theodore Thomas at the Park Mineral Springs have become very popular. Hundreds of delighted listeners assemble in the vicinity of the handsome Kiosk and the programmes are always of a first class order. THE FIRST NATIONAL BANK OF TEHN_SSEE. To THE EDITOR OF THE HERALD:In your issue of this morning, where you notice the arrest of George R. Rutter, ex-President of the First National Bank of Memphis, it should read "Tennessee National Bank," which bank suspended some two years ago, said Rutter being its president. Please do the "First National Bank" the justice to make this correction-that Mr. Rutter was president of the Tennessee National Bank of Memphis and never had any connection with the "First National Bank whatever.

19. April 9, 1872 New-York Tribune New York, NY
Article from New-York Tribune, April 9, 1872

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EX-CONTROLLER HULBURD'S DEFENSE. HIS OF THE TENNESSEE CASE-NO COR- APPOINTMENT VERSION MOTIVE ADMITTED-TH EXPLAINED. OF RUPT HIS BROTHER-IN-LAW TELEGRAPH TO THE TRIBUNE.1 |BY April 8.-Mr. Hooper, Currency, ChairWASHINGTON, House Committee on Banking and of the man of the from H. R. Hulburd. late most Controller serious accuhas;received an affidavit in reply to the with the Ten Currency, against him in connection following is an sations made Bank of Memphis. The George R. nessee National of the affidavit: Mr. Hulburd says that Bank, early abstract President of the Tennessee National Hulburd, Rutter, 1866, paid for a carriage which he, the resignain August, for. This was soon after the depwas of negotiating Freeman Clarke, and Heattached while Hulburd no was especial siguty tion and acting Controller. at the time. In the latter part of of the the nificance to this he was informed that the in affairs good consame month National Bank were not to MemTennessee and an examiner was sent According to dition, make an investigation. failure on the phis to report, there had been a important prothe Examiner's bank to comply with several of managepart of the of law. and numerous irregularities committed. visions required correction had been the rement which goes on to say that lie did not show. suppress As to the Hulburd records of his office will of the affairs port, as the of receiver, to take charge necessary appointment he says a a reference to the law receiver is may of the bank, to determine upon what grounds a the National in order appointed. Section 50 of of the Curbe legally act provides that the Controller association Currency becoming satisfied that any in default, rency may, on to pay its circulating notes, and the is only ground has refused appoint a receiver." This is and the reforthwith which to appoint a receiver forthwith, of the bank at upon showed that the entire circulation while the The port to be only $90,000, $93,527. that time its hands amounted to in the money in reserve of the bank was deficit provided sum in lawful money 58. Under the Currency act, as notify the of $21,282 it was the duty of the Controller failure to of the Section 31, make good this reserve, and, on with the bank to to do so within 30 days, he could. the Treasury, bank of the Secretary of business. The concurrence receiver to wind up its bank had appoint a showed that the capital amount of the of it being rereport never been also fully paid in. a large Section 15 of the law propresented vides that in by case stock any notes." shareholder directors shall of the fail association to pay any instalment on the stock stock. at public the auction. found, after public the amount notice may sell weeks. such If no bidder can be and sale, and of three the cost of advertisement be forfeited to the due on the stock, already paid in shall Directors may the Association, amount and the stock and be sold, if not as sold the it is to becanceled order, and within deducted six months, from the capital the capital stock. If below the can- the be celation and reduction by the reduces law, the capital stock receiver must increased minimum required within 30 days, in default of which a may be appointed. could do in the case its of the managers Tennessee to National All the Controller Bank was to call of the upon law. To show his that afli- he performed comply with his the duty, provisions Mr. in Hulburd which he attaches calls its to attention comdavit a letter to the irregularities, bank, and insisting upon had a been to the following law. But $40,700 of the capital $50,000, by pliance with the the law required capital conpaid the 24th in, of May: while that the remainder the reserve of the fund was Bank defi- of sisted of stockholders) over $20.000; the notes; loan for; to the the National overdrafts were cient the Metropolis by was uncalled capital, and 72 per cent 30 of the paid up not more than half exhibited at $51,324 65, considered the records with per cent of the nominal capital; cash items were the of of which the bank could were imperfect be suggestions 80 and not of in the accordance Controller bank of had the instructions and records did not show that the be directors Currency; directors, the and some of those to supposed possess to the requisite any did amount not of appear stock; on no the portion to books the of the surplus net earnings fund, appeared previous was to have been carried dividends; also, that there of to making Controller's office the certificate while in four the on file in the that $50,000 had been paid cashier in, swears that directors quarterly report of the in, bank and there the was surplus fund re$100,000 had been This paid letter, he says, shows with. that every quirement of $52,211 05. three of the weeks, law had the been report complied of the bank and the showed amount the amount Within of money on hand $114,318. to be $154,746, showing a surplus of required for reserve parilenlar was point being from complied ap$40,428. the This Controller was this precluded ground. Meanwith, while, pointing the a receiver Legislature of the funds on belonging of Tennessee to the its funds State inquired held and into the the bank, subject and eventually of the withdrew bank all for the balance. received by the the maturity obligations of the first bill, was the sent bank to was investigate unable the facts, 1, 1867. Upon to pay and and suspended. a receiver An was agent appointed under Sec. Hill 50 as of the cashier In act, relation of about the March to Tenuessee the was appointment to National bring the Bank, of President Wm. Hulburd A. and suitable says him that his only agency former having applied to him Hulburd as a asserts together, person for the the position. taken In before conclusion, the Committee on having other that the testimony as should have been admitted, nothpoints is not such of gossip and hearsay, and proving directly or been made up "I have never received, of any indirectly, ing. He also money adds: or property for from the performance the performance of official duty, duty, or for or any for refraining favor which my I had official it in my power position, to I grant, any in do consequence not know of and the do employment not believe of that and any has, subordinate directly or in indirectly, the received exercise money of in or this property Bureau for official favors, with the or for head of the Bureau this in fluence. of real any or parties assumed. or applicants Examiner whatever." Bull To and a behalf afiidavit is appended R. the Smith report of of Memphis, written in 1869, letter in from regard Thomas to the affairs of the bank.

20. April 14, 1872 The New York Herald New York, NY
Article from The New York Herald, April 14, 1872

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while the amount required for revenue was $114,318, snowing a surplus of $40,428. In this particular, then, the bank promptly complied with the law. and the Comptroller was consequently precladed from taking any steps towards the appointment Of a receiver on this ground. Meanwhile the large deposit of funds in the bank belonging to the State of Tennessee became THE SUBJECT OF LEGISLATIVE INQUIRY and eventually of legislative enactment. A committee of the Legislature visited the bank, took all its funds and received the obligations of the bank, for the balance. payable by instalments. The maturity of tne first of these bills found the bank unable to pay. The note was protested. the bank was obliged to suspend. An agent was sent to invesugate and report the facts. One of its circulating notes was protested and a receiver was appointed, as provided in section 50 of the act, about the 1st of March, 1867. Relative to THE APPOINTMENT OF WILLIAM A HILL as cashier of this bank, the following statement is made:-After the letter of September 15 was written Mr. Rutter, the President of the bank, visited Washington-1 think about the last of September or the 1st of October. He stated that he was dissatisfied with his cashier, and asked me if I could recommend a suitable man for the place. In thinking over the men whom I knew, who would be likely to be qualified for such a position, the name of Winimam A. Hill occurred to me. I had-little or no acquaintance with him personally, but he was highly recommended by a number of respectable firms as well as individuals, and his testimonials had been filed with me in support of an application for some position connected with the National Banks. AMONG HIS TESTIMONIALS were letters from Drexel & Co., Jay Cooke & Co., Hon. F. R. Brunot and Hon. T. M. Howe, and all referred to his experience and qualifications as a banker. I submitted these letters to Mr. Rutter, and at his request sent for Mr. Hill, and so brought the two men into communication. This was the extent of my agency in furnishing a cashier for the Tennessee National Bank. I had no interest whatever in Mr. Hill's going to Memphis further than this I believed him to be a 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 reform, and so far as my knowledge goes did his best to accomplish it. He went 10 Memphis, according to his own testimony, early in October, but did not becom e cashier until the last of November, and had been in that position only about three months WHEN THE BANK SUSPENDED. appointed nim receiver because I regarded him as nonest, capable and well qualified by nis knowiedge 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 I could appoint. Through all the perplexities and embarrassments attending the settlement of the affairs of the Dank have never had any reason to believe that Mr. Hill did not act with entire honesty and good faith. It was never questioned but once to my knowledge and then I wrote to Mr. Thomas R. Smith, agent of the State of Tennessee, appointed by a special ace of the Legislature, to settle the claims nela by the State against the bank. and the man interested above all others in the honesty and correct conduct of the receiver, and his reply confirmed my good opinion of Mr. Hill. His letter also explains why so long a time elapsed before the atfairs of the bank were entirely closed up and the receiver aischarged. That letter is hereto attached, marked B. During this whole period Mr. McCulloch, SECRETARY OF THE TREASURY, WAS CONSULTED on every imporantt point, and nothing of any moment was done without his approva, and, at this distance of time, I think 1 can say with truth tnat everything was conducted properly and in order. The foregoing is a plain statement of facts which it cannot successfully be questioned, sustained as is by official record and documentary evidence. If this statement 18 true, everything in the shape of testimony which comes in conflict with it must be discredited and rejected; and If it is true, it 19 clear that the comptroller lest unperformed no duty which devolved upon nim under the law. The tesumony taken before the committee on other points 18 not such evidence as would be admitted before any properly constituted tribunal. It is made up of gossip, nearsay, &c., and proves nothing. All intimations, however, reflecting upon my official integrity are met by a full and explicit denial. I have never received, directly or indirectly, money or PROPERTY FOR THE PERFORMANCE OF ANY OFFICIAL DUTY, or for refraining from the performance of any duty. or for any favor which I had it in my power to grant in consequence of my official position, and I do not know and do not believe that any subordinate in the employment of this bureau has, directly or indirectly. received money or property for offctal favors or for the exercise of influence, real or assumed, with the head of the Bureau, in behalf of any parties or applicants wnatever. on the contrary, I have sought continuously to serve the government faithfully to the best of my H. R. HULBURD. ability in all things.