The Arkansas banner., 1843-09-30

as two or three in paper, for ono III specle' the country would he worse off than It IS, Ill respect to uncurent money. The Doctor tells us, in his publication, that in the palm jest days of the Banks, when they all paid specie, the paper, in New Orleans, was at discount of from 8 to 10 per cent; and he might have added, with equal truth, that in the Eastern cities it would not pass at all- and yet with this admission before us, 1t may be contended, that if the specie had been brought here, the Banks could have done better How they could have done better, with foreign debt upon our people, and the balance of trade so greatly against us, as it was at that time, 1 am at a loss to perceive What man out of the State, when our paper, in its palmiest days, was from 8 to 10 per cent. discount, would take 1t, if, by going to the Bank, he could get the specie for his paper What merchant is there among us, or steamboat captain, or trader in any thing, who would take our Bank paper, when the discount upon t vas 50 great, il, by go- ing to the Bank, they could get specie for it There are none who would do it. Let the Bank have exchanges, and no one wants her specie. They will give specie for the ex- change, and premium, to avoid the care, risk, and expenses of transporting the specie. Let the Banks have exchanges at their com- mand, and they can sell it at profit, and al he ti1se increase their specie means.- This every banker will tell you-this fact tic books of the Bank, i'll this country, will establish-and it was a knowledge of this fact, that prevented the Bank from sending to f New Y ork, for the million left there in spe- cie or its equivalent, as the mstalments be- came due. And will add, that 1t was the knowledge of this fact, that prevented Gib- son, when q Director of the Stale Bank, from having the S950000 of the funds of the State Bank from being brought here. Am wrong in this In the appendix to the journals of the Legislature of 1838, you will find the contract which was concluded, in New Y ork, on the 27th day of August, 1888, be- tween the State Commissioners, Messrs. Bertrand and Ashley, with Mr. Beers, for the sale of the 1000 bonds belonging to thezState Bank.
 Mr. Beers paid the Commissioners fifty thousand dollars, drawn iii specie, and placed to the credit ot the Commissioners, one hun dred thousand dollars, and to the credit of the Branch Banks at Fayetteville, Batesyille, and the Post of Arkansas, the sum of fifty thousand dollars each; and for the residue, Mr. Beers agreed to pay, and l believe, has paid, in instalments of little over fifty thou 1 sand per month, from the first of January, 1889, to the first of February, lS40. Look at the contract, and. you will find that here was sale of one thousand of the State bonds, by the State Commissioners, (and a good sale, too, amounting to the sum of one million of dollars, and all they received and brought home, was fifty thousand dollars, and all the residue was drawn for as 1t be- came due This sale was reported to the Legislature, in 1888, and was referred to the Bank committee; and find that the chair man, MT. N oland, of Independence county, had 1t before his committee, of whom the Doctor was one; and you will find, at page 243 of the journals of that session, that the chairman reports, < they have made close and rigid investigation of the situation of the Bank, carefully comparing the report of the | President and Cashier with the books of, and examining all matters and things connected t! .ls;s :: institution, with great pleasure state, that they have been unable to detect any departure from the spirit and meaning of the charter, but, on the contrary, found that the interests of the Bank and people had been carefully guarded; and that, at the same time that relief has been extended to the latter, the former has been so prudently managed as to be in most healthy and, sound condition,' , S0c This report was made on the 30th ol November, 1S38, in Legislature of which the Doctor was member, and by commit | tee of whose members the Doctor was one. Now, if leaving the money of the Bank in New Y orll, to be drawn for, Is so disastrous to the Bank, will the Doctor be good enough to inform me why the Banks did not send to f New ork, for the specie? Come, Doctor tell us why it was not done, You were a
 Director during the time, and tie whelt [ time, the Bank was drawing for 1t. If the Real Estate pursued so suicidal course tc | their interests, why did the State Bank follow } that example? Why did not Demosthene; r and Cicero, (Gibson and Gaines,) rise up or !, that occasion, or in 1840, or in 1843, ant t denounce the system of banking upon the funds of the banks of the city of New Y orki : l will tell you why, Doctor Sevier hap } pened not to be Commissioner in that ne { gotiation; and, secondly, that the Doctor : happened not to be Director in the Real Estate Bank. But the conversion of the , 500,000 into western and southern ex- } changes, saith the committee, and their wit i ness, injured the Bank. How did it inaict that injury' again repeat, that, according to the report of an unfriendly committee. the ]; Commissioners realized, clear profit for the l Bank, an average profit of three and hall per cent, that is to say, $l7,000 or $1S,000 , and that this very southern and western mo- ney was either drawn for, at further pre- mium, or was loaned out at premium.
 Yet Mir. Newton states, in his answer to the second interrogatory, that this money < acas loaned out, byt the Bunk, as fast as pos sible," and that some of it is on hand yet Now, if instead of saying the money :. was loaned out as fast as possible,'' he had said, T hte money aras in great demand, and most eagerly sought atler, and premium paid for q, the statement would have correspond