Washington telegraph., 1854-11-29

bonds each for $1,000, bearing interest at
the rate Of SIX per cent per annum; and
the stockholders, 100 in number, under this
act, mortgaged to the State Of Arkansas
/ So, III acres of land, valued by commis-
sioners under oath, at S7T6,S40 06, as an
| indemnity TO the State and the holders OF
the bonds, for the payment by the bank of
the interest, and also for the payment or
redemption of these bonds when due.-
! BY the terms of the charter, these bonds
could not be disposed Of at less than par
but the bank, without authority and in
violation of law, hypohecated them 10 the
North American Trust and Banking Com
pany,' Of New York. on the 7th day of
September, 1910, and only obtained up
Il. Tbo!s IS6ihecated bonds have never never
been returnedao he\State, but by the ille-
gal acts Of the banhhave been placed be-
/ yond her control.
| On the second day Of April, lS42. by a
deed of assignment, the assets of the bank
amounting as stated to 50 405 966 Is, were
| placed in the hands of trustees.
The liabilities Of the bank on the ID day
of April, 1872. we're stated at S2.230,9 ,9S6
/ 50, being Sl74,979 SO less than the assets
! on that day stated to have been placed in
! the hands Of the trustees under tie deed OF
assignment.
The Executive has no official report or
/ Information from thc bank, showing al! its
present liabilities and the amount Of assets
now remaining unexhausted But it is be
lieyed, that if the true condition Of the bank
were known, the present liabilities would he
near a million of dollars greater than they
were on the I'd day Of April, 1912 If this
be 50 now, and if the the trustees and Off
GERS received S174,979 So more than the
bank owed on the I'd day Of April, lS42,
certainly the people of this State, and par
ticularly the stockholders, who mortgaged
lands 10 secure the State and bond holders
against loss, are deeply interested in having
a full explanation and true statement Of
the cause Of this great deficiency. Ii seems
to me that thc.intelests, credit and honor Of
the State are too deeply involved for any o.
fcer or legislator OF the State to do any act
which would tend to suppress or delay such
action as is necessary to obtain a fall and
complete explanation. let the responsibility
and accountability fall ON whomsoever It
may
Not one Of the 1880 bonds sold by The
bank, has been redeemed and surrendered
to the authorities of the State But 10y a
statement Of the cashier and secretary,
shown in statement marked CO." in the
Auditors report, it appears that on the 1>t
Of October 1854, the trustees bad in their
hands 1z9 Of these bonds and that the in
terest on the bonds and coupons taken up,
amounted to Sl43, 100, leaving unpaid by
the bank 1851 bonds, upon which the in
terest unpaid by the bank amounted, on the
lst Gay Of October, 1851, to &l,0T3 1870.
But by information from the Treasury De-
nartment OF the United States, It appears
that the sum Of $41,947 90 part Of tie
funds which had accrued TO this State from
the 1st cay Of January, 1871, to the Isl
day of January. 1858. on account of the 5
per cent. of the net proceeds of the sales o:
public lands within the State. and on ac-
count of the distributive share of the pro-
cecds of the public lands, under the act oi
Congress of the 4th of September 1S4l,
had been retained at the United States
Treasury, and applied before the ist of Oc-
tober, 1854. towards interest due on 500
bouds Of this State, which had been issued
to the Real Estate Bank, and which are
held by the Secretary Of the Treasury in
trust for the benefit of the Smithsonian In
stitute. Therefore the real amount of inter-
est due on the LIST Of October. 1854, on the
1,341 bonds not taken up by the bank,
was $1.031 242 II, making when added to
the amount of the bonds, $685., ,242 II.
i 1t also appears that the bank is indebted
for Sl22, ,4S9 81 obtained on the 7;h Sept.
1910, from the North American Trust and
Banking Company, on the 500 bonds which
the bank hypothecated, and for the interest
on the money up to the lst October, 1854,
in the sum Of 1926, $50 81, which added to
the 50 382, ,242 IL, makes debt OF 81 co.,
900, on account Of the Real Estate Bank Of
the State of Arkansas on the lst of October,
1854. The bonds sold by this bank will not
be due until the 26th day Of Oct, 1861.
BY bad management of the banks the
faith and credit of the State have received
a wound which has retarded her prosperity;
but by judcous administration of our pub
lie affairs. time viii heal the wound again.
The State of Arkansas will never repu-
diate her just debts. She will honestly
pay them all whenever she can command
the means When the bonds of the State
were issued to the Real Estate Bank Of the
State of Arkansas. it was never intended
that the people should be taxed to pay the
bonds or the interest on them, but on ;be
contrary, as required by law, the stockhold-
ers (for security to the State and bondhold-
ers for the payment of the bonds and the
interest on them) rtgaged to the State
07,lG1 acres of land. valued by commits
sioners under cath at S3.3S0.7T2 SO. The