The Arkansas banner., 1845-01-08

enabled to do DlSlueSS nOt III dcCOfudUCe with those customs and to the southern far mer, the question would be well answered by asking him d similar question--Why do you not sell your own cotton in the city of New Orleans, when you are present, instead of getting q commission merchant to sell ii for you? You answer, that custom has made il necessary that should employ a commission merchant, in order to effect an advantageous sale Then you have the reason yourself; and now, il they only gave the customary price, and effected an advantageous sale there by, which they did, according to the proof which you have before you, they certainly, upon this point, stand before you justified.
 After this sale of the five hundred bonds, a portion of the proceeds of them were con- vcrtcd into southern and western funds, at various rates of discount, making a profit to the Banks of upwards of seventeen thousand dollars. Sevier, with one portion of this fund, met Davies, the President of the Bank, at Louisville, ana paid the same over to him, and took his receipt therefor. The Commls- sioners sold million of bonds to Beers, and deposited the proceeds of said bonds, in New Y ork, subject to the order of the Real Estate Bank thereby making sale of fifteen mil lion of bonds for the Bank.
 In this did they fully obey their instrue- tons; and did they discharge their duty to the Bank? They were instruetedb by Davies, President of the Bank, that when they had succeeded in making sale oithe Bonds, to de- post them in some safe Bank, subject to the check of the Cashier, and that 1t was a part cti f I for them, and sell checks at such points in the west as would enable them to exchange the eastern funds at par for specie; and to pro- vide an amount of not less than $2O0,000 of that kind of funds for the commencement of the operations of the Bank and ilthey could, by any operation of Their 0lea, haSicn tte er- chaHge, Hiat they ,eoaid do so
 He instructed them that our wants at home were great, and greater than they would be again for years, and that, being on the spot, they must necessarily know better than the Directors what was for the best; and having confidence in Independence and fidelity, they were Jeff, in all things, to do what to them seemed most meet and proper.
 IL has been contended, by the former Re port, and by several little prints, since the production of that document that these in- structions were violated. If they were, there is not now the man in this General Assembly of sufficient ability to point Il out
 Upon the subject of the conversion, the Commissioners have been much blamed, and some have gone so far as to state that their conductwas very injurious to the Bank. At the time, 1t was admitted and thought by all not to be injurious to the Bank. The Presi- dent of the Bank not only thought so, but thought that it was an operation favorable to the Bank, by about twenty thousand dollars. And fl il was, at any time, thought profitable for the Bank to have had her capital in The vaults of the Bank, why did not the Bank proceed to bring il home and deposit it there? But fl she chose 10 keep the same out on de posit, Was 1t not at her own fisk and could the Commissioners be held responsible for the funds after they had obeyed their instruc- tions and discharged their duties? But 1t Is contcnded, that they. had no specific instruc- tions to make the conversion into southern and western funds If they had no such in- structons, would not the general instructions, where they were left free to consult their own judgments in all things concerning their mission, have been a sufficient warrant for them to have made the conversion3 All but the most technical agree that il would and now for the benefit of the technical, 1 will quote instructions which are specific and to the point: ",3Ad if yoH ca,l, by any opora- lion of your oacn, hasten hc -crchange, youwiH do SOD By reading the instructions prece- ding this short sentence, you will find that it is a sufficient specific warrant, for the Com missioners to have made the conversion as they did. And 1t being made their duty to act according to their own judgments con- ccrniug all matters about which they were engaged, it was their duty, if they thought it for the interest of the Bank so to convert the funds, even under their general instructions Then il appears that they were justified both by general and specific Instructions. And in- asmuch as the investment operated to the in- terest of the Bank, to the amount of more than seventeen thousand dollars, it shows that their duty was not only performed, but that it was performed with ability. And al- though there was a small loss on fine Missis- Sippi money, it was not the fault of the Com miSsioners, for the southern and western Banks paid specie, according to the testimo- ny of Newton and Woodruff, from January until September, during which period the Bank could have availed herself of this small amount, if the Directory thought pro- per, in specie; and their having failed to do so, cannot justly be attributed, as a fault, to the Commissioners.
 The former Report takes great exceptions to \. Il. Sever's having retained fourteen thousand three hundred dollars, as money to which he was entitled as stockholder to the Bank. Now, from the testimony, we are warranted in saying that Seyier was stock holder; and if he was stockholder, he was entitled to a credit of one half the total amount of his stocks. The l7th section of the charter of the Real Estate Bank provides that "each and every stockholder shall be en- titled 10 credit equal 10 one half of the total amount oi his steeks.n This constituted the contract between Seyier and the Bank. "A Legislative compact CT grant, Is d contract within the meaning of the constitution; and