Arkansas intelligencer., 1843-08-26

commissioners for this institution to sell the bonds
oftbe State of Arkansas. you will embrace the
, first opportunity Of entering into an arrangement
for disposition of them, either by an advance and
consignment of them to Europe, or for sale al
once in New York or Philadelphia.
I In the event of taking advance, YOU will en-.
deavor to obtain the full amount of five hundred
thousand dollars, on an agreement to consipn the
whole amount Of fifteen hundred thousand dollars
contracting to deliver the remaining thousand
PONDS In reasonable time, making sufficient al.
iowance for any probable delay, and conditioning
the hnal payman Of tho half million of dollars on
their delivery. You WILL however, make it one
OF the positive conditions of the contract that two
hundred and fifty thousand dollars be paid in hand,
and tho remainder of the advance on the delivery
or the remaining bonds, on Isl Sept, should the
| bonds be delivered before that date. 1t should
also be part of the contract. that the consgnees
hold up the bonds for term of twelve months if
they cannot sooner be sold in London at par. You
will however, feel yourselves authorized by your
i powers of attorney to make contract in New
York for a sale in LONDON, so stipulated that the
proceeds realized in New York, shall be the value
received for them. On this point, your previous
negotiation will afford you all the necessary items
OF information and your knowledge of what is re-
CURED by the charter of tho bank, to make sale
which will comply with its provisions of receiving
" not less than par value" will suggest TO you the
necessity OF so wording your contract, as 10 keep
strict'y IN view that essential particular.
The words "receive not less than par value !"
Will IN the opinion of the Board of Directors fully
authorize sale at less than par value abroad, If
the sale expresses to receive par at home and the
bank realizes ''no less than par - from the pro-
ceeds of the sale in specie or its equivalent.
Should the opportunity offer of selling the whole
amount of one million five hundred thousand dol
lars. on such terms you may be induced to dis
pose OF that amount Of bonds you will do so, and
as our lmmedat3wants for money, will probably
be fully met by deposte of five hundred thousand
dollars at the time specified above, and with
vlew to facilitate sale at Once, you contract
for the payment of the remaining million to be
made IN lnstalments, commencing lst December,
ard ending lst March. Our branches will not be
ready to receive it earlier. and the interest will
consequently be saved by arranging the payments
to be received at such times they will most pro-
baby be wanted.
When you have perfected your arrangements
and obtained the funds vnir will nrnc,-n tho
of ten thousand dollars change from the mint at
Philadelphia, if can be had from them; without
too much expense and inconve nience, and you will
also get the sum of one hundred thousand dollars
in gold for the commencement of our operations,
both of which amounts you will bring with you on
your return to Arkansas.
The remainder Of the funds arising from the
advance sale of the bonds, you will have depos-
ited subject to the check of the Cashier or Pres
dent. AS heretofore, you are again left to exer-
else your own discretion and judgement in all
things connected with your mission, and with the
hone that it may early terminate favoraby.
| have the honor to be
your obedent servant,
GSigned1 A. Fl. DAVIES, President
X. E. Bank, State of Ark's.'
The seventh and last allegation is I" That the
result of their conduct was most fatally disas-
trous to the interests of the institution, and of
the State" This is the question 10 be decided.
The Doctor, admit, proves it by tho testimony
of Mr.. Newton. Mr.. New!on's testimony is to
be found at page IS in the appendix The first
question asked Mr.. Newton is as follows
Question lst.-" From your knowledge OF, and
intimacy with. the internal concerns OF the Bank,
could you state to the committee, whether the con-
version Of tho money, (received on tho 500 bonds
into western and southern funds, conduced to the
soundness, safety and prosperity OF the bank, OF
did 1t have the reverse tendency?
Answer of defeudant.-"I do not thi.k the con
version IN question conduced to the soundness OIL
prosperity of the bank, but undoubtedly the re-
rerSe." The italics are Mr.. Newton's. How wa:
this conversion. " undoubtedly to the reverse" O
the interest of the bank. and to arrive that fact
the committee put to Mr.. Newton the interogato
ry number four, which is in these words:
Question 4th.-" State to the committee wheth
-er not. the Is50O.OOO deposited in the N. YorI
J Trust and Banking Co., in the city Of Now York
by the commissioner, was equal 10 the SAM
amount here in gold and silver with tho addition
of two and half per cent on the same"
) Answer to question 4th-" The bank sold OK
change on New York, after the sale of the 50
bonds at two and half per cent premium in spe
cie.'' The itaIicised word is Mr.. Newton's own
Question 9th" What did the bank charge q
!, that time for eastern exchange in Arkansas Ban
paper.--State or Real Estate Bank %
Answer to question 9th" Tho eastern eS
! change sold at two and half premium fo
!, specie or its equivalent-the State Real Estat
. at Little Rock being taken at par.
v Here, sir, is the testimony taken to show thu
j. the conversion Of the 100000 into Western an
s. Eastern Exchanges, was ." undoubtedly to the r.
II rerse' OF the soundness and prosperity Of sh
o Bank, according to the witness, and according t
d the committee was SO fatally disastrous to the i,
teresfs Of the Institution and of the Stale. Wei
how does this happen? The commissioners le
none Of the $5OO.OOO in Neu York for the ban
to draw for. The drafts of the bank were upl
IRE million the commissioners had left in Ne
atp~II