The Arkansas banner., 1843-09-30

ments and obtained the funds. you will pro- cure the sum of ten thousand dollars change from the mint at Philadelphia, if it can be had from them, without too much expense and inconyeniece, and you will also get the sum of one hundred thousand dollars in gold, for the commencement of ouf operations, both of which amounts you will bring with you on your return to Arkansas.
 The remainder of the funds arising from the advance or sale of the Bonds, you will have deposited, subject to the check of the Cashier or President As heretofore, you are again left to exercise your own discretion and judgment, in all things connected with your mission; and with the hope that itmay early termira.e favo aaly,
 l have the honor to be
 your obelient servant,
 .A. II. DAVIES, President,
 Reak Estate Bank of ,4rlcaasas.
 The seventh and last allegation is, .That < the result of their conduct was most fatally {. disastrous to the interests of the institution, and of the State" This is the question to be decided. The Doctor, admit, proves it by the testimony of Mr. Newton. Mir. New toms testimony is to be found at page S5 in the appendix. The first question asked Mr. N Newton e,Ti-ttofii is 5ai5 5a55 follows follow
 Question lst. ''From your knowledge of, and intimacy with, the internal concerns of the Bank, could you state to the committee, whether the conversion of the money, Gre ceiyed on the 500 bonds,) into western and southern funds, conduced to the soundness, safety, and prosperity of the bank, or did it have the reverse tendency
 Answer of deponent C do not think the conversion in question conduced to the sound- ness or prosperity of the bank, but u9doubt- edyH rererSe." The italics are Nr. New toms. How was this conversion, %-uas9ou6t- e35y e35y 3o t.:e tAe 1oo515e oi the interest oi the bank, and to arrive at that fact, the commit tee put to Mir. Newton the intewogatory num- bef fur, which is in these words:
 Question 4th. "State to the committee whether Or not, the b500,000 deposited in the New York Trust and Banking Compa- ny, il the city of New ork, by the com missioner, was equal to the same amount here in gold and silver, with the addition of two and a half per cent. on the same.o
 Answer to question 4th. "The bank sold exchange on New ' York, after the sale of the 500 bonds, at two and a half per cent. premi- um in specfe.'' The italicized word Is Mir. Newton's own.
 Question 9th. "What did the bank charge at that time for eastern. exchange in Arkansas Bank paper-State or Real Estate Bank ;7'
 Answer to question 5th. s.Thc eastern exchange was sold at two and half premi- um for specie or its equivalent-the State or Real Estate at Little Rock, being taken at par.
 Here, sir, is the testimony taken to show that the conversion of the 500,G00 into Vest en and Eastern exchanges, was " "uadoUbt- edly to be recerse'' of the soundness and prosperity of the Bank, according to the wit ness, and according to the committee, was so :. fatally disastrous t9 tho interests of tfe in- sfiiutiom and Of the State. Well, how does this happen? The commissioners left none of Mc S500,000 in .Nelc- York for the bank to draw for The drafts of the bank were apois the million He commissioners had lett in .New York, guaranted by the bank and due by in- stalments from Beers Three hundred thou sand of 1t subject to the order of the bank, in about two weeks after it commenced ope- ration, and one hundred thousand per month, each month thereafter, until it was all paid. Well now, sir, allow me to ask, ill all sheer ity. good temper, and fraEkne5s, if checking here upon New Y ork, at premium of two and {, half per cent, was not for tho interest of the bank, why was it the bank did not send for the specie and bring 1t home , For that million at least, there was no contract or blundering of the commissioners to entram- mel them. Why was 1t not done in regard to this million, if 1t was not for the interest ot the bank to draw for 1t, for the two and a half per cent premium2 Mr. Newton was in the bank, and 1t is well known that in tha institution he always had great inAuence.- Well now, the two and half per cent. prof was all the bank made upon the million the commissioners left in New York. And fol | the 500,000 which they converted into Southern and Western exchanges, the repor of the committee admits that the commission CTS made profit of three and a half in get ting the money deposited, according to tht statement of the President, which is true, a Louisville, Cincinnati, Natchez, and New i Orleans, Slc., at banks convenient to Arkan- sas, and where the business of the State was generally transacted. But, sir, we now have the 500,000 at profit, according to the repor of the committee, of three and half per cent at the places before stated The bank now draws upon those points for specie Or its equivalent, for those were specie times, at 6 profit of two and a half per cent more, which the bank did-making therefore upon the operation, iastead of Hie t1eo and C hdB Rey cent, which was made upon the million in New Y ork, Hree and c half per cent. in tAc first instance, and taco and C haif m he se- cond, amounting altogether to sir per cent But it was not all drawn, for some of those southern or western notes were brought on here and loaned out, aH of it at c premium and if any of 1t was lost, it was the fault of the bank, because all the banks on which there was dollar due, were either paying specie in December, when the bank com menced operation, or within two weeks { Thereafter, which was the first of January, 1859, and the greater portion of them at a much earlier day. These are the facts, and