The Arkansas banner., 1845-01-01

1 had agreed to pay, under the act of Congress,
 extending further time to them. This ought Ito have admonished them not to purchase their paper, then in state of suspension, and ] greatly below the specie standard, and at greater discounts in New Orleans tnsn in
 New Y York at the time of this exchange
 Now, sir, it is clear, from the charter,
 that it was notthe intention of the Legislature
 which granted the charter, that the bank
 should ever let its own paper fall below the
 specie standard. Ircier you to the instruc-
 tons for selling the 500 bonds, which were
 sold for the Smithsonian legacy. and the only
 sale spoken of in the former report for tte
 reason before stated, these instructions are at
 page 44 of their own report, and written by
 I. II. Davies, President of the Bank. He
 first states, in substance, that these ins,ruc-
 tions are to govern the commissioners in sell ,.
 ing $500, GOO of the bonds of the State of
 Arkansas, bearing an interest of six per cent,
 issued 10 this institution to form part of is
 Ecrmaneat capital. What tie permanent
 capital of the Bank exchanged for deprecia-
 ted bank paper, which was loaned out as fest
 as possible The same instructions further direct the commissioners, that, "having IL
 view the accomplishment of the objects eo
 essentially necessary for the interest of the
 Bank, with regard 10 tie supply of specae,
 and Eastern crcdu deny that the Bank
 realized either specie or Eastern credits, from the sale of the 600 bonds, and if the
 committee, in their search after truth, had
 asked all the witnesses this question, they :, Woula have readily answered, that the Eas- tern funds and specie of which they speak, 7 were derived from the bonds sold 10 J. D. Beers, and not for the 500 bonds sold for the Smithsonian legacy. This committee, then, have made an lssue with the committee of the last Legislature, upon matter ebovt witch they made no report, by blending the , manies arising from the bonds sold to Beers, ] wih the dcpreciaied paper taken for the ] Smithsonian legacy.
 Q will again, sir, call your attention to
 elanse in the same instructions, which state, . '.when you have succeeded in making sale !, ofthe bonds, you will, without delay, make such disposition of the funds by deposite, iII some sale Bank, as will enable this inslitu- i ton te realize them on the checks of the . Cashier II is a part of our present plans to
 draw for them, and sell our checks at such . points i'll the West, as will enable us to ex-
 change our Eastern funds at par for specie,
 
 $200,000 of that kind of funds for the conl- mencemeat of our operations: and if you
 can, by any operation of your own, hasten Q the exchange, you will do so.n
 , Now, sii, you see that these instructions i also contemplated specie basis for the bank, e and aYow the intention to sell all their east D ern funds for specie at points in the west-- The Commissioners neither made eastern ' deposites nor brought specie finds homc.-- ]. Says one, < they were authorised to hasten t the exchange" This is true, if the the ex- l change had been in the specie funds needed, and required by the bank, but sir, have :. shown that they were not. Now, sir, ad [. init that some of the witnesses, when asked ,f qdesIioH6, Whether the funds obtained by the r negotiation of Seyier and Williamson, did q produce par Dalue, answered yes but you Il will bear in mind that these answers embrace q the funds derived from both sales-but if the $ committee had asked these gentlemen wheth- 2 CT the bank obtained specie for the funds ob- Il tained for the Smithsonian legacy, they would n not have said that any specie was obtained. l. But, sir, they evade this matter, by asking if Il the bank did not obtain par value, Sc. How Il was that par value obtained Why, sir, 1t Y Is manifest from their own showing, that 1t Il was by loaning out the capital of the bank. V Now, sir, how does this matter stand The IT value of the paper of the very best of those .r borrowers, Is but forty or fifty cents on the >, dollar, as they can pay in Arkansas paper,-- Q and large portion will never be paid and Q consequently, is worth nothing. Then this ,r is the par value that the bank received for m this permanent capital of which Mir. Davies at spoke in his letter of instructions. But, sir, d this committee i'll the body of the report, d have told half the tale, by leaving out all the l. special instructions, and quoting the general le instructions. This is lodging the question, of and trying to shield Col Sevier by relying rs on the final 10 these instructions, which re- ye pose confidence in the judgment and fidelity Id oi the Commissioners, and leave to tleir m discretion the negotiation, Sc. Now, sir, H. do these general powers, Unnecessary in all ,- missions of the kind), authorize the Commits at sioners to violate any part of the special ll- II structions the resolutions of the Central Board, or the provisions of the Charter, the ,r very law by whnhall the officers were bound. 2. These, sir, formed their legitimate instruc- pr lions. Whata poor subterfuge this, to which q. this committee are driven 10 save their man, ,e and sustain their position that he did not vi- 1d oiale tee instructions!
 ,h Sir, have been little curious upon this n, subject, and to satisfy myself, l went to the on State Bank and examined tie files of Sylves- he ter's Reporter, and find that from the time y this negotiation commenced, say the el oi s, June, 10 the time these southern and western y funds were purchased, such funds rose in if value, say Planters, Agricultural, and Com i'd mercial Banks, payable at Natchez, rose in or that time from 20 10 $ discount. up to 7and to s, at which they were purchased by the bro as kers for our Commissioners. Now, sir, was ve this because this suspended bank paper had IT, really become nore sound or more valuable
 or was it because such large command was Q created for the agreement with Corcoran.- or which enabled him and lis friends, the oth.