Bank of East Tennessee (Knoxville, TN)

Episode Information

Episode UID
5807574090684
Episode Type
Run β†’ Suspension β†’ Closure
Bank Type
state
Bank ID
580757409 hash
Start Date
December 1, 1856*
Location
Knoxville, Tennessee (35.961, -83.921)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a9be84749cfca923

Response Measures

None

Description

Contemporary reports attribute the crisis to maliciously started rumors; trustees/assignment indicate permanent failure.

Events (5)
1. December 1, 1856 Suspension
Cause
Rumor Or Misinformation
Cause Details
Unremitting run precipitated by circulated reports forced the branches to suspend specie payments
Newspaper Excerpt
branches at Jonesboro' and Chattanooga were closed
Source
newspapers
2. December 1, 1856* Run
Cause
Rumor Or Misinformation
Cause Details
Reports/rumors intentionally started to create a panic and induce holders to sell at discount; widespread loss of confidence
Measures
Knoxville office continued redeeming issues while branches tried to transfer specie to Knoxville
Newspaper Excerpt
the day the heaviest run was made upon the Bank
Source
newspapers
3. December 20, 1856 Suspension
Cause
Rumor Or Misinformation
Cause Details
Continued run and loss of public confidence led the Knoxville office to suspend on Dec. 20
Newspaper Excerpt
the principal bank at Knoxville on the 20th December
Source
newspapers
4. January 2, 1857 Receivership
Newspaper Excerpt
Dr. J. G. M. Ramsey and Maj. Thomas C. Lyon ... have been appointed Receivers, or Trustees; Col. Churchwell ... has made an assignment ... for the benefit of the Bank
Source
newspapers
5. January 6, 1857 Other
Newspaper Excerpt
The Bank here, as well as its two branches, has suspended payment, and as we have good reasons to believe, will never resume again.
Source
newspapers

Newspaper Articles (20)
1. December 4, 1856 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, December 4, 1856

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Bank of East Tennessee. We learn verbally that this institution was redeeming its notes promptly up to Monday at Knoxville, and that a strong effort would be made to weather the storm. This information comes through a' gentleman direct from Knoxville. P. S.-Since the above was written a gentleman called at our office, who left Knoxville on Tuesday last, P. M. He informs us that entire confidence is restored in East Tennessee in relation to the soundness of the Bank. He states that the citizens of Knoxville say they are determined to sustain it. The President informed him that, on Saturday, the day the heaviest run was made upon the Bank, the deposites exceeded those of any previous day in its history. Our informant took up near $800 on the Bank payable at Jonesborough, which was redeemed at Knoxville.--Nashvitle Banner of last Thursday.

2. December 5, 1856 The Athens Post Athens, TN
Article from The Athens Post, December 5, 1856

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H If we did not know the magnanimity of our cotemporary of the Atlanta Intelligencer, we should feel a little nervous about that proposition tendered last week in regard to the Bank of East Tennessee. The last advices from Knoxville are not very flattering, and indicate that the institution is about to "go under" sure enough-nt least for the present. We learn that the banks and business men generally, and the railroad, all refuse its issues since Monday, and that the Bank, like the Georgia Wild Cats, will be compelled to suspend until it can "rally its resources." Of course, its promises to "pay the bearer on demand at Knoxville, Jonesboro,' or Chattanooga," are no longer current at our counter-at least until further advised.

3. December 9, 1856 Nashville Daily Patriot Nashville, TN
Article from Nashville Daily Patriot, December 9, 1856

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BANK OF EAST TENNESSEE-BRANCHES CLOSED.The run upon the Bank of East Tennessee, has been kept up unremittingly since the outbreak of the panic, until now we regretto say, its bills cling to the holder "closer than a brother." Until Saturday evening most of our merchants continued to take the money at their counters, but on Monday, there seemed to be a general letting down of "cons fidence," until, at noon, there was not a business bouse, in the place, we believe, that did not reject it. The brokers would not buy it at any price.On Tuesday, the Branches at Jonesboro' and Chat. tanooga were closed, and the specie remaining in their vaults transferred to the office in Knoxville. The bills on these branches will not be redeemed at the counter in Knoxville, now, though the Bank contemplates taking up the paper due at the Branches, 80 soon as it can. Whether it will ever be able to do this, we have no means of knowing further than the verbal statement of the Bank offi cials. The Knoxville office is redeeming its issues. It is to be regretted that the Board of Directors, if satisfied that the Bank is secure, did not, immediately upon the origin of the panic, overhaul their assets and submit an authentic statement of the condition of the Bank to the public. Such a procedure would have stopped all further distrust of the Bank's soundness. But this has not been done, and the consequence is, the billaholders, ign norant of the Bank's condition and fearful of a loss, have poured in its paper upon it, until it has been forced to a suspension at both the Branches. We understand (and we would not say 80 without good authority) that the circulation of the Bank, at the time the panic brok out, was about $600,000, of this, bills to the amount of about $225,000, have been taken up,-leaving over $350,000 yet unre. deemed. What basis the Bank has, upon which to meet this circulation, we do not know. We will say, however, that the Officers of the Bank state that a sufficient amount of its assets will be due, within the time allowed by the Charter, to ena ble them to meet all out standing bills. Assuming that the Bank has done a strictly legitimate busi ness, we see no reason why the money may not all finally become good. Of the standing of the Bank in Knoxville at present, we will state that, as currency, its money is worthless, Our merchants are "hands off" and the Brokers refuse it at any price. The highest sale we heard of on Monday, was at 75 cents, while on Tuesday (we write Tuesday night) it was selling on the streets at fifty cents, and as we learn, no one was pur.. chasing, except those who had a "way" of using it to advantage. We give the foregoing as an impartial statement of the facts as they exist. We certainly have no disposition to do the Bank injustice, while at the same time we will give no version in its behalfcalculated to deceive our readers. Our individual opinion, unsupported, would be comparatively worth. less, and we, therefore, give no advice-make no predictions. If the Bank has done only a legiti. mate business, its money must eventually be good; if not, we can only trust that the money "sharpers" rather than the people, will have to bear the brunt of the disaster.-Knoz. Register.

4. December 11, 1856 Nashville Daily Patriot Nashville, TN
Article from Nashville Daily Patriot, December 11, 1856

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BANK OF EAST TENNESSEE-The Knoxville Standard of the 3d inst., contains an article from which we take the following: "The temporary suspension of the branches is DO argument against the ultimate solvency of the bank, when we consider that no bank of discount and circulation could stand a general and organs ized run upon its vaults, precipitated upon it with. out warning, and without a day's time for preparation, especially when such demands are made when no previous cloud in the general financial horizon had given any token of a coming storm, and no cause existed to render a special curtails ment of operations either proper or advisable. We feel assured that the bank as scen as she can collect her resources will be ready to meet every outstanding obligation, nor do we anticipate that there will be any serious delay in redeeming the issues payable at the branches-and we therefore repeat our advice to note holders to retain them and to submit to no sacrifice." From all the sources of information in re. gard to the inception and progress of the panic, the editor says: It has been pretty clearly ascertained that these reports all owe their origin to a common snurce, and they were started for the mere purpose of creating a punic and consequent run upon the bank, of such a general nature as to euable the originators of the reports to purchase up the is. sues at a heavy discount and thus make & large fors tune from the innocent dupes of these designing schemers."

5. December 18, 1856 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, December 18, 1856

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BANKS. The run upon the Bank of East Tennessee and its Branches at Chattanooga and Jonesboro', for the last three weeks, has resulted in the suspension of specie payments by the Branches, though the principal Bank in Knoxville continues to redeem its issues. The notes do not pass in business transactions. The officers say that as soon as they can collect, they will redeem every dollar- but public opinion is distrustful. The rumor to which we alluded last week, affecting the solvency of the Bank of Chattanooga, is believed to have been without foundation. The bills pass at par. This is a squally time with Banks. To our readers we would say: watch our columns closely, as we intend to publish the latest and most reliable information, in order that our subseribers may guard against loss in the event of a crash.

6. December 22, 1856 The New York Herald New York, NY
Article from The New York Herald, December 22, 1856

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$156,019 28 Net pronts for the year Or 10 2-5 per cent for the year on the capital of $2,500,000. The accounts in regard to the Bank of East Tennessee continue to conflict. Advices received direct from the spot at Atlanta, Georgia, state that the bank had gone by the board, while the Knoxville (Tenn.) Register and other papers from Tennessee state that business men continue to receive tte paper, but with a final disposition, however, to reject it entirely, with few exceptions. The Register has the following in relation to the matter :The run upon the bank has been kept np upremittingly since the outbreak of the panic, until now, we regret to say, its bills cling to the holder closer than a brother." Until Saturday ovening most of our merchants continued to take the money at their counters, but on Monday there seemed to be & general letting down of confidence," until, at noon, there was not a business house in the place, we believe, that did not reject it. The brokers would not buy it at any price. On Tuesday, the branches at Jonemboro' and Chattanooga were closed, and the specie remaining in their veults transferred to the office in Knox. ville. The bills on these branches will not be redeemed at the counter in Knoxville now, though the bank con templates laking up the paper due at the branches as soon as it can. We understand (and we would not say so without good authority) that the circulation of the bank, at the time the panic broke out, was about $600,000, of this, bills to the amount of about $225,000 have been taken up, leaving over $850,000 yet unredesmed. The anthracite coal trade is now narrowed to the operations of the Reading and Lehigh Valley Railroads, so far as the business with the Schuyikill and Lehigh regions is concerned. For the week ending on Thursday of last week, there was brought down over the Reading road 47,045 tons, and from the beginning of the present fiscal year 127,724 tons, against 87,271 tons to corresponding time last year. The Lebigh Valley Railroad brought down, for the week ending on Saturday last, 5,267 tons. and for the season 176,158 tons. The present gudden and very severe cold spell of weather has somewhat stiffened the market, and, we understand, dealers have made an effort to advance the price 25 cents por ton. The Boston Courier has the following in relation to mining on Lake Superior:The public have thrown away an immense amount of money in the Michigan copper mining business Within the past ten years upwards of one hundred of these copper mining companies bave been formed, with an aggregare of two millions of shares, which, at the low average of only $5 per sharΓ©, amount to ten millions of dollars, taken chiefy from stockholders in Massachusetts, New York, Pennsylvania and Connecticut. Out of these numerous companies only two have been profitable enough to make dividends, and more than half of the whole number have been blosted out, after exhausting the p&tience, if not the pookets, of their proprietors. A major. ity of those remaining are more likely to lay assessments than golden egge.

7. December 23, 1856 The True Democrat Little Rock, AR
Article from The True Democrat, December 23, 1856

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From the Knoxville Register. Bank of East Tennessee-All Branches Closed. The run upon the Bank of East Tennessee, has been kept up unremittingly since the outbreak of the panic, until now, we regret to say, its bills cling to the holder "closer than a brother." Until Saturday evening most of our merchants continued to take the money at their counters, but on Monday there seemed to be a general letting down of "confidence," until, at noon, there was not a business house in the place, we believe, that did not reject it.not it at On at and were and the remainJonesboro' The Tuesday brokers the would branches closed, buy Chattanooga any specie price. ing in their vaults transferred to the office in Knoxville. The bills on these branches will not be redeemed at the counter in Knoxville now, paper at the so soon ever be able todo the Whether though it due will the bank branches, contemplates this, taking as we it have can. up no means of knowing further than the verbal statement of the bank officials. The Knoxville office is redeeming its issues. It is to be of if satisfied is did regretted that the the bank that the "secure, board directors, not, immediately upon origin of the panic, overhaul their an authentic bank to the a have all disassets condition procedure and of would submit the stopped public. statement further Such of the trust of the bank's soundness. But this has not been done, and the consequence is, the billholders, ignorant of the bank's condition and fearful of a loss, have poured in its paper upon it, until it has been forced to a suspension at both the branches. We understand (and we would not say so without good authority) that the circulation of the bank, at the time the panic broke out, was about $600,000; of this, bills to the amount of $225,000, have been taken up-leaving over $350,000 yet unredeemed. What basis the which to we not know. We will that bank the do officers has upon meet say, this however, circulation of the bank state that a sufficient assets will be the the to bills. that the time amount meet allowed all of out-standing its by charter, Assuming due, enable within them to a strictly we no reason money not all see bank become has good. done why Of the legitimate may business, finally the standing of the bank in Knoxville at present, we will state that as currency, its money is worthless, Our merchants are " hands off," and the brokers refuse it at any price. The highest sale we heard off on Monday, was at 75 cents, while on Tuesday, (we write Tuesday night) it was selling on the streets at 50 cents, and, as we learn, no one was purchasing, except those who had a 'way" of using it to advantage. We give the foregoing as an impartial state ment of the facts as they exist. We certainly have no disposition to do the bank injustice, while at the same time we will give no version in its behalf calculated to deceive our readers. Our individual opinion, unsupported, would be comparatively worthless, and we, therefore, give no advice-make no predictions. If the bank has done only a legitimate business, its money must eventually be good; if not, we can only trust that the money "sharpers" rather than the people, will have to bear the brunt of the disaster.

8. December 24, 1856 Lynchburg Daily Virginian Lynchburg, VA
Article from Lynchburg Daily Virginian, December 24, 1856

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As many of our readers in Tennessee and Vir ginia are interested in The affairs of this lam concern, we copy from the Knoxville Register ( the 12th the subjoined notice of its failure. Tb Augusta Sentinel thinks thisisonly the begin ning of the end." Tennessee indestined to pas through a severe ordeal in connection with be banking system, unless all experience in the his tory of banks is at fault. Under the operatio of her general banking law, speculators hav availed themselves of its privileges, and estab lished petty Banks all over the State: some o them in remote localities from the business marts where there was no need of any such institutions and where they cannot be conducted legitimate ly with profit to their owners or benefit to the people. Hence, the temptation to wild and reck less speculation. which must sooner or later re sult in failords of the Banks, and disaster to the per ple. With such a system of banking. it i almost impossible for the Legislature to throw around them sufficient safeguards to protect the people against such consequences. The tempta tion to speculation and fraud among the owner and managers is too great. and the people mus and will suffer. But to the article of the Regis ter, which we subjoin: BANK OF EAST TENNESSEE-BRANCHES CLOSED.The run npon the Bank of East Tennessee has beer kept up unremittingly since the outbreak of the panic until now we reg et to say, its bills cling to the hol der "closer than a brother." Until Saturday evening most of our merchants continued to take the money at their counters, but on Monday, there seemed to be a general letting down of "confidence" until, at noon there was not a business house in the place. we believe that did not reject it. The brokors would not buy i at any price. On Tuesday, the Branches at Jones boro' and Chattanooga were closed, and the specio remaining in their vaults transferred to the office in Knoxville. The bills on these branches will not In redeemed at the counter in Knoxville,now, though the Bank contemplates taking up the paper due At the Branches, so soon as it can. Whether it will ever be able to do this, we have no means of knowing furthe than the verbal statement of the Bank officials. The Knoxville office is redeeming its issues. It is to bi regretted that the Board of Directors, if satisfied the the Bank is secure, did not, immediately upon the origin of the panic, overhan! their as ets and submi an authentic statement of the condition of the Bank to the public. Such a procedure would have stop ped all further distrust of the Bank's soundness. But this has not been done. and the consequence is, the bill-holders, ignorant of the Bank's condition, and fearful of loss, have poured in its paper upon it, unti it has been forced to a suspension at both the Branch es We understand (and we would not SILY so with out good authority) that the circulation of the Bank at the time the panic broke out, was about $600,000 of this, bills to the amount of about $225,000, have been taken up-leaving over $350,000 yet unredeem ed. Want basis the Bank has, upon which to meet this circulation we do not know. We will say, however, that the Officers of the

9. December 24, 1856 Nashville Daily Patriot Nashville, TN
Article from Nashville Daily Patriot, December 24, 1856

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Bank of East Tennessee. From letters constantly pouring in upon us, we find that this Bank, and its recent suspens sion, is the all absorbing topic, and if we fail weekly to have an editorial reference thereto, our readers are disappointed. Rumors of va. rioas kinds are afloat as to its liabilities, of its probable failure, and its probable restoration. We pay no sort of attention to these rumore, and deal only in what we know to be facts, or what we gather from reliable sources. No business house in Knoxville is now taking its issues, and when they are bonght up at all, it is at a ruinous discount, and for those who have an iminediate use for them, and can use them profitably. Dr. J. G. M. Ramsey and Maj. Thomas C. Lyon, two of the Directors, have been appointed Receivers, or Trustees, as the case may be, and Col. Churchwell, the President and principal stockholder, has made an assignment, or conveyance, of all his personal and real estate, to these gentlemen, for the benefit of the Bank, and the redemption of its issues. These Trustees are honest and reliable men; and as far as the large estate of Col. Churchwell will go, it will be properly applied. Whether there will be enough of means to pay out, depends on the circulation; and what this is, we have no means of knowing.-Knorville Whig.

10. January 6, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, January 6, 1857

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BANK OF EAST TENNESSEE, The failure of this Bank has led many to inquire as to the probable value of its issues. In the absence of any information from the officers of the Bank, we copy the following from the Knoxville Whig of the 3d inst.: BANK OF EAST TENNESSEE.-Our numerous acquaintances residing at & distance, many of whom have no other acquaintances here to write to, feel at liberty to enclose us the issues of this Bank to exchange for other money, and of this liberty we do not complain. Butjust here, once for all, let us request all such to send no more. If the holders of the bills can get anything for them where they are, they can do as well as to return them to this market. The Bank here, as well as its two branches, has suspended payment, and as we have good reasons to believe, will never resume again. From 15 to 25 cents on the dollar, is the most offered for the money. And why? Because, the assignment of real estate, for the benefit of the Bank, prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for distribation among the note holders. The Bank is broke, and the failure is no inconsiderable one.ΠΈ ith these distinct avowals, we hope there will be no necessity for our alluding to the subject again.

11. January 7, 1857 Nashville Daily Patriot Nashville, TN
Article from Nashville Daily Patriot, January 7, 1857

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BANK OF EAST TENNESSEE-The Bank here, as well as its two branches has suspended payment, and as we have good reasons to believe, will never resume again. From 15 to 20 cents on the dollar, is the most offered for the money. And why? Because, the assignment of real estate, for the benefit of the Bank, prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for distribution among the note holders. The Bank is broke, and the failure is no inconsiderable one. With these distinct avowals, we hope there will be no necessity for our alluding to the subject again.-Knozville Whig, Jan. 2, 1857.

12. January 15, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, January 15, 1857

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Bank of East Tennessee. The failure of this bank has led many to inquire as to the probable value of its issues. In the absence of any information from the officers of the Bank, we copy the following from the Knoxville Whig of the 3d just: BANK OF EAST TENNESSEE.--- - Our numerous acquaintances residing at 8 distance, many of whom have no other acquaintances here to write to, feel at liberty to enclose us the is. sues of this Bank to exchange for other money, and of this liberty we do not complain. But just here. once for all, let us request all such to send no more. If the holders of the bills can get any thing for them where they are, they can do AS well as to return them to this market.The bank here, as well as its two branches, has suspended payment, and as we have got reason to believe. will never resume again. From 15 to 25 cents on the dollar, is the most offered for the money. And why? Because, the assignment of real estate, for the benefit of the Bank, prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for distribution among the note holders. The bank is broke, and the failure is no inconsiderable one. With these distinct avowals, we hope there will be no necessity for our alluding to the subject again.

13. January 21, 1857 The Hillsborough Recorder Hillsboro, NC
Article from The Hillsborough Recorder, January 21, 1857

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A BANK FAILURE.-The Bank of East Tenmessee has suspended payment, and the probability appears to be that it will never again resume. The Knoxville Whig says that the most that is now offered for its bills"is 15 or 20 cents on the dollar.

14. January 26, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, January 26, 1857

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BANK OF EAST TENNESSEE.-The Knoxville Whig says, that the Bank at Kuoxville, as well as its two branches, have suspended, and, as it has good reasons to believe, will never resume again. It advises bill holders to get what they can for them, and adds: "From 15 to 20 cents on the dollar is the most offered for the money. And why ! Because the assignment of real estate for the benefit of the Bank, prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for distribution a anong the note holdera. The bank is broke, and the failure is no inonsiderable one."

15. January 28, 1857 Washington Telegraph Washington, AR
Article from Washington Telegraph, January 28, 1857

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Bank of East Tennessee. The last Knoxville Whig says :-"The Bank here, as well as its two branches, has suspended payment, and as we have good reasons to believe, will never resume again. From 15 to 20 cents on the dollar is the most offered for the money. And why? Because the assignment of real estate, for the benefit of the Bank, prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for the note holders. The Bank is broke, and the failure is no inconsiderable one."

16. February 15, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, February 15, 1857

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BANK OF EAST TEFNESSEE, The Knoxville Register, in reply to sundry inquiries from 6 distance, as to the date of the suspension of the Bank of East Tennessee, states that the branches closed on the 1st December, and the principal bank at Knoxville on the 20th December.

17. February 17, 1857 The True Democrat Little Rock, AR
Article from The True Democrat, February 17, 1857

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TENNESSEE BANKS-What they say of them in Georgia.--The - Augusta (Ga.) Chronicle and Sentinel, commenting on the failure of the Bank of East Tennessee, makes the following attempt to discredit all, or nearly all the banks of this State:-Evgle and Enq. "The majority of the banksin Tennessee are of the same denomination, "one horse banks," owned by a few individuals, generally, perhaps, speculators, and it is not unreosonable to anticipate that a similar fate awaits them. Georgians, especially, should, therefore, be on their guard, and avoid the consequences of a failure. Repudiate their bills." We are not prepared to sav that a majority of our banks are "one horse" concerns. Some of them are, and doubtless will follow in the wake of the Bank of East Tennessee, and prove worse failures. This is our candid opinion-aside from all prejudices or bias by feeling! This opinion is from a personal knowledge of "men and things"-"banks and business!" A sound currency is as essential to the trade and business of the world, as a pure atmosphere is to the health of the body Financial Express, Memphis, Tenn., Jan. 24. BANK OF EAST TENNESSEE.-The Knoxville Whig says that the bank at Knoxville, as well as its two branchs, have suspended; and as it has good reasons to believe, will never resume again. t advises bill holders to get what they can for them, and adds: "From 15 to 20 ce: its on the dollar is the most offered for the money. And why? Because the assignment of real estate for the benefit of the bank prefers certain creditors, and when these are secured, it is manifest that little or nothing will be left for distribution among the note holders. The bank is broke, and the failure is no inconsiderable one."

18. February 19, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, February 19, 1857

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Bank of East Tennessee. The Knoxville Register, in reply to sundry inquiries from a distance, as to the date of the suspension of the Bank of East Tennessee, states that the branches closed on the 1st December, and the principal bank at Knoxville on the 20th December.

19. February 16, 1858 Nashville Patriot Nashville, TN
Article from Nashville Patriot, February 16, 1858

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Bank of East Tennessee.--Something for Legislators to think of. After the suspension of this Bank, the corporation as such. made an assignment to Dr. J. G. M. Ramsey and Maj. T. C. Lyon, for the benefit of the bill holders and other creditors of the Bank; at the same time, the principal stockholder assigned to the same trustees all his property for the same purpose. Last week we announced, that the Legislature by a joint resolution of the two Houses. had directed the Attorney General to institute such proceedings as would result in a Judicial decree, affirming a forfeiture and abrogation of the charter of the Bank. It did not then occur to us, that by such a proceeding the end contemplated by the Legislature may be wholly defeated; that is if their purpose be to add to the value of the notes still in the hands of the people. Upon the dissolution of a corporation, its real estate reverts to the grantor by whom it has been conveyed, while the personalty goes to the State. This is unquestionably the rule of law applicable to corporations, whose franchises and privileges cease by reason of the expiration of the time for which they were to exist, and we know of no principle of law which changes the rule in the case of the dissolution of a corporation, by a Judicial decree of forfeiture. In the case of the Bank of East Tennessee, there is no provision in the charter which directs that in such an event, the real estate and personalty owned by the corporation are to be appropriated, otherwise than as the general law directs. If then it is granted, that the charter of the Bank of East Tennessee has been violated, and the Supreme Court shall abrogate and annul it, the question arises, will not all the assets in the hands of the assignees pass from them by operation of law; the real estate to the grantor and the personal effects to the State? If this should be the operation of the law as applicable to such a case, it is manifest, that upon a decree or order of forfeiture by the Court, there will no longer remain any hope to the note holder or other creditor of realizing payment in whole or part.-Knoxville Citizen.

20. August 19, 1862 The Nashville Daily Union Nashville, TN
Article from The Nashville Daily Union, August 19, 1862

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The following Tennessee Banks are broken, or have been wound up; and their Notes, if any are out, are utterly worthless: Agricultural Bank, at Brownsville. Central Bank of Tennessee, at Nashville. Farmers' and Mechanics' Bank, at Memphis. Mechanics' Bank, at Memphis. Memphis Saving Institution, at Memphis. Exchange Bank, at Murfreesboro. Miners' and Manufacturers' Bank, at Knoxville. Bank of East Tennessee, at Knoxville. Bank of Trenton, at Trenton. Bank of Jefferson, at Dandridge. Bank of Claiborne, at Tazewell. Bank of Tazewell, at Tazewell. Lawrenceburg Bank, at Lawrenceburg. Citizens' Bank, at Memphis. Bank of America, at Clarksville.