The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-05-04

80 426723
In the southern States the debts contracted have been
for banking purposes and all such banks have failed
Florida Alabama Louisiana, Mississippi and Arkansas
have all met with fate Arkansas in respectto
some Of its bonds threatened reputation but it is
pursuing of compromise that will do ample JUS
ce to all parties The following extract from letter
eminent house this city will clearly explain the
position of affairs there
LITTLE Rock, Arkansas, April Is, ls4s.
Having thus briefly replied to the important question
contained your letter relative to the prospect pay
ments from the cotton crops Sc. WILL in few words
express my opinion in relation to the Banks Of
and the value the State bonds You the
two banks OF this State are now in processo liquidation
The Bank owned exclusively by the State. The
Real Estate Bank owned By asas number n Of the
to the State against loss upon the bends issued by
the State to the bank. learn from very intelligent
friend here whe well acquainted with the whole sub
ec the State issued to these two banks 81 Of
bonds bearing interest of and per cent which sum
constitutes the whole debt of the State In these bonds
the United States have for the Smithsonian fund
and Indian annues $500 900 and 81 600 now belong
to hol abroad The United states and the foreign
conviction that rich State will with great ease pay
off the small that may remain due upon her bonds al
the OF the bank shall be exhausted. Thus
pears that about Of the Arkansas bonds cannot
be purchased for less than par am informed by the
person that remaining 5000 about $500
supposed to belong to citizens of the city New York and
the free banks OF the Sae he also represents that
than are now owned by citizens OF that
cent the Of the bonds and that orders have been
from here that will exceed the whole amount
posed be for SALE The orders are for the bonds issued
by State the Real Estate Bank Of Arkansas and the
demand for these bends arises in this way. This bank
based upon subscription made by the Planters for the
stock which stock paid for by upon the
most valuable plantations of the State for 81 600 Of
State bonds issued to tine order Of the Real Estate Bank
and upon these bonds money was obtained by the bank
for banking purposes. The State 10 now willing and
ready to surrender any planter his mortgage upon
receiving an equal amount in the bonds of
the State issued to the Real Estate Bank. The
Planters purchasing these bonds at the lowest
price they procure them in the New York market,
Tor the purpose Of redeemng their morgaged plantations
This that many orders have been lately
to New York for these bonds and is perfectly APP
parent that this demand must continue long the
bonds below par Beside this source ofimmediae de-
msnd there many here who wish to purchase and hold
these bonds because they believe that the assets of the
Bank wllpay only the debts, but within $500 coo of
all the bonds of the State. This ate will not therefore
than to be collected by taxes from the
people Of the State who although in their infancy,
export larger amount than either Illinois Indiana.
The conclusion therefore, to which have come is that
you had better send goods cash here present
but all the cash you spare in the bonds of the
State given the Real Estate Bank of Arkansas
can use all can obtain in the purchase of cotton
their par value the few remaining bends
taken out Of the New York market"