William T. Sherman to Andrew Johnson, August 10, 1862
Memphis, Tenn., August 10, 1862.
His Excellency Gov. ANDREW JOHNSON, Nashville:
Sie: Your esteemed favor of August 1 was handed me yesterday by Mr. Smith, cashier of the Memphis Branch of the Union Bank of Tennessee, and I promptly gave him the desired permission to go to Grenada to look up the assets of his bank, but I know full well that his visit will prove unsuccessful. No officer there would dare give up anything of use or value to them. I explained at length my views to Mr. Smith of the duties and obligations of himself and associates in the present strait. The bank has put in circulation notes to the extent of over a million of dollars and are indebted to their depositors for funds to a large amount. These liabilities are of a high and honorable character and the bank must redeem them. As trustees of this debt they will be held to a strict account. They must do all that is possible to secure the property and assets of their bank and apply them honestly to the redemption of their circulation and depositors.
It seems their bullion in coin and assets, notes made here and elsewhere, have been carried away by force and fraud. They deny complicity. They have not the power to retake their coin, which is therefore lost to them, but they can secure the notes. These notes are made payable here and are secured by property in Tennessee. Although the
mere pieces of paper are at Grenada, the debts are here, and I must insist that the officers of the bank give public notice that the notes must be paid here by the makers or the securities will be proceeded against. Again, the assets were removed by force and fraud by Beauregard and others, who have property here which is liable for their unlawful acts. Out of these the branch bank can and must recover the means to redeem their notes and pay back to their depositors. They should do so at once, lest tactics be changed and men pay or pretend to pay their notes elsewhere.
The difficulty only is they fear the power of the common enemy and are trembling Jest they commit themselves in case our enemy prevails. The branch bank here was vacant or not in use. General Grant ordered me to take possession of all vacant buildings and appropriate them to the use of the United States. I could have taken this building, but have forborne until the directors have time to assume their ground. They must be true to their trust, declare boldly and openly against the parties who robbed them, and at once begin to realize on assets which, though seemingly removed, are still here, else I have no alternative but to conclude that they are in complicity with our enemies and treat them as such.
I know that you agree with me in thisâthat all men must now choose which king. This by-play is more dangerous than open, bold rebellion. A large amount of the success of our enemies has resulted from their boldness. They have no hair-splitting. We, too, must imitate and surpass their game and compel all men and corporations to at once espouse the cause of their State and National Governments, thereby securing full right to protection, or openly to rebel and forfeit their property and their lives. Please say as much to the president of the bank.
with great respect,
Major-General.