The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-05-04

Beertbeing pador sthe privilege OF paying Fhere the
amounqof the CURRENT rate of eNchange'son Fhe sum
which otherwise would have been RENTED tosLondon.
He was DESTROYS of con, ertng the temporary arrange
meat into permanent one and asked the Bank to allow
him sum equal per cent on the principal, tsiOOOO
amounting $4,000 for the REIMBURSEMENT OF his rghto
fill up the blank endorsement with London and instead
insert New York. After years negotiation with the
Bank an arrangement made withihm for the exti
punishment of his right, by allowing him Z per cent o,
SIS for it. to be paid however till the controver
- about the 500 bonds finally settled and then with
portion of them, rating them at par.
In relation to 500 bonds alluded the facts are simply
as follows On the 18th Of September 1870 the agents for
the real estate Bank of Arkansas delivered to the North
American Trust Banking Co. 5000 of the bonds of
the State as collateral security for loan $3.50 600 to be
repaid one-haf in July lsiI and the remainder in May
1872 on the express condition that the bonds should be
sold by the North American Trust Banking Co., only
IN the event OF the failure of the real bank prompt
ly to return the money and then only sufficient Of
to cover the deficiency The being completed,
the North American Trust Banking paid sI25,
600 only and received the bonds. the January follow
ing viz, lsi they in violation of contract pledged their
bonds with Hoord, Brancker CO. for $500 900, but
paid over to the Real Estate Bank of Arkansas the
remaining $4,000 In July 1871, the agents of the Ar
kansas Bank rendered the money in of $4,000
received, and then discovered that the North American
Trust & Banking Co. had parted with the bonds and
could not deliver them That institution had therefore
borrowed and had the of $4,000 from January
l ls4l than they had loaned upon them The Real
Estate Bank of Arkansas had received but $25 for
100000 ofthe obligations of the State that they parted
with, and could not get them back and those being
upon the market had greatly depressed the price all
The agents then, very properly, Immediately cautioned
the public against those bonds giving the numbers The
agents then on their return home stated the 10 the
stockholders of the bank, and laid before Governor
Yell The result ofths the following proceedings on
the part of the stockholders of the bank and also of the
Governor
RESOLUTIONS OF THE CENTRAL BOARD THE REAL Es-
TATE BANK or Arkansas, Nov. 8, ls4l.
Resolved That the acts and proceedings of the said
North American Trust and Banking Company in refe-
renee to the Bonds hypothetical and put into their pos
session have been fraudulent and and
unJustihable, in any view-of the
Resolved That in the opinion of this Board this ins
tuition neither legally morally bound recognise
the validity OF the Bonds in the hands of Hoord Co..
they standing in better different condition in respect
to the some, than the said North American Trust and
Resolved That the course pursued and the views OK.
pressed by the late agents Of the Bank in New York
meets the approval of this Board.
The following extract from the resolutions of the
meeting of the stockholders of the Real Estate Bank of
Arkansas, Nov 8, 1871 -
said 500 bonds or doing act that may imply assent on
the part OF the bank But if the bank has received of the
North American Trust and Banking Company money
and II said that the Agents of the Real Bank did
receive some Sl20OOO we implicitly pay it puncual-
win interest thereon-but, say, pay it because we
got the and not because the bonds improper
ly pledged. But further say let the holders of the
bonds surrender them before hey expect to
either principal interest for we determine never to
pay principal or interest unless bonds surren-
dered."
These proceedings followcdby letter from Cover
nor Yell to Messrs. Tallmage Holford Co. which after
enumerang the facts of the case closes with the follow
ing significant language:-
EXECUTIVE DEPARTMENT
Little Rock, Ark, 10th Nov. 1871.
To MEssRs. TALMAGE, HoLroRp & Coz
You will find the people of Arkansas as sensitive in
their for honesty and punctuay as those of any
state in this Union and they will in good faith keen al
their public engagements, however burthensome those
corporations may prove when the sale of their Bonds
have been made bona de for valuable consideration and
IN accordance with the charter But would be absurd
to suppose and mistake the character of our peonle
II you atter yourself that they will tamey submit to
be taxed to pay bonds hypothetical stock obbers to
enable the Bank to carry her regulations without the
authory oil law, and in express violation of her char
ter
shall, however, for your satisfaction and that Won
may understand what the Legislative branch of the Co
yernment will do lay the whole subject fully and fairly
before them for their Legislative action thereon
ii am not mistaken in the positions assumed think
know the people of Arkansas too well to aatter Won "
much hope from that quarter
am, with respect
Your Obcdient servant
A. YELL.