The true Democrat., 1854-11-08

} prescribed by the act of 10th January, 1853, of rec urlng the contractors for building the wall } to keep the convicts for certain time, be adopted ln contracting for the construction of the work shops and the warden or keepers house. It would be well to have this subject acted up- on as early as convenient, so that the contrac- tor may, during the winter, obtain the large SUI ply of provisions which will be required for the use of the convicts.
 The State of Arkansas issued to the Real Es ate Bank of the State of Arkansas, ,53O of her bonds, each for $1OOO and bearing int crest at the rate of six per cent. per annum. By the sale of these 1850 bonds the bank ob- [ tai led her banking capital amounting to one mi lion five hundred and thirty thousand dol lars.
 Bv the provisions of the charter, the bank was bound to pay the interest and also 10 re- deem the bonds. The stockholders, 18O in number, mortgaged to the State of Arkansas Al, ,9SO acres of land, valued by commissioners unler oath, at S26O3, 932 32 as an indemnity to the State and the holders of these bonds, for the payment by the bank, of the interest and tha redemption or payment of the bonds. It is represented that the bank paid the interest on these l,53O bonds up to the first day of July, 18t1, and that no interest has been paid by the ba K since that date
 Under the act to establish the western branch of the Real Estate Bank, the State issued to that institution 800 more of her bonds each for Sl,OOO, bearing interest at the rate of six per ce!,t per annum; and the stockholders, loo m number, under this act, mortgagod to the State of Arkansas 65, 121 acres of land, valued by commissioners under oath, at S776, $40 O6, as an Indemnity to the State and the holders of bn l,,t q, 2 Al 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 au- thorty and in violation of law, hypothecated them to the "North American Trust and Banking Company" of New York on the 7th day of S-ptember 184O, and only obtained up- O. the five hundred bonds, the sum of S122,- 3e9 v. These Hypothetical bonds have ne- Yer been returned to the State but by the H. legal acts of the bank have been placed beyond her control
 On the End day of April 1912, by deed of assignment the assets of the bank amounting as stated to S2,4O5, ,966 15, were placed in the hands of trustees. When the deed Of assign m mt was made besides the principal bank at AJtle Rock, there were four branches of the R al Estate Bank; one at Washington: one at Columbia: one at Helena, and the other at Van BNrcn. Before the as5 gnmeut the State, un- der the charter of the bank had two directors al the prime pal bank and two directors at each ot Its branches, to guard and protect her inte- re ts. But by the deed of assignment the $ ate was deprived of her representation ii the b; nk. Everr officer or agent of the State was a q has been excluded The trustees of the Real Estate Bank and their two officers, the at tC ncy and the cashier and secretary. have had C ntfol and management ever since the 2nd of A orll, 1912 of the large fund of assets stated al two millions four hundred and five thousand n 1e hundred and siXty-six dollars and fifteen Ct nts, as well as the interest, which from time tC tune, accumulated on the debts during this peU0d of more than twelve wears and half The notes ut individuals to tile bank drew in- tt est at the rat, of eight per cent and under ct 'taIn circumstances ten per cent. Ter annuIn. 1 he Sta,c bonds sold by the bank bear interest at the rate of six per cent per annun. The liabilities of the bank on the second day of April, 1912, were stated to be S2,23O98G 59. being $174979 56 less than the assets on that dy stated to have been placed in the hands of u Q trustees under the deed of assignment.
 The Executive has TO official report or ;n- formation from the bank, showing all its pre-
 
 rcmail.ing uncEhaustcl. But it i, believed. tlat # the true condition of the bank were known, the present liabilities would be near a ilhon of dollars greater than they were on the ? day of April 1842 Ii this be so uow and fl the trustees and officers received Sl74979 5j more of assets than the bank owed on toe Fl day of April, 1842, certainly the people of t-is State, and particularly the stockholders who mortgaged lands to secure the State and bond holders against loss, are deeply interoste l iW having full explanation and a true stato- ment ot the cause of this great deficiency Il sens to me that the interests, credit and honor ,ot the State are too deeply involved for uuY officer or 9g.sator of the State to do any act winch would tend to suppress or delay such &C., ton as isnecessarv to obtain a full and complete explanation, leJ the responsibility and accoun- ity fall on Whomsoever it nav
 Not one of the l,5 0 bonds sold bv the bank. has been redeemed and surrendered to the au- tnortieS of the S.ate. But by a statement of the cashier and secretary, shown in statement marked co" in the Auditors report. 1t appears that on the first of October 1854, the trustees had in their hands 179 of these bonds, and that the interest on the bonds and coupons taken up, amounted to S143, 16O, leaving unpaid bv the bank 1851 bonds, upon which the interest un- paid by the bank amounted, on the first of Oc- tober 1851, to $1,073,19O But by intorma- ton from the Treasury Department of the United States, tappears that the sum of s4l.- @47 29, part of the funds which had acryIleI to this State from the lst day of January, l841. to the first day of January, 1858, on account "f the per cent of the net proceeds of the , sales of public lands within the State. and on account of the distributive share of the pro. ceeds of the public lands, under the act of Con- sress of 4th September, 1941, had been retain. d at the United States Treasury, and applied tefore the lst of October, 1854, towards intc. rest due on 500 bonds of this State, which had l Teen issued to the Real Estate Bank, and } which are held by the Secretary of the Trea. !; sury in trust for the benefit of the Smithsonian } Institute. Therefore the real amount of in. crest due on the lst of October 1S54 on the 1851 bonds not taken up by the bank, was &1,O31 ,242 T, making, when added to tho : ;mount of the bonds, $2,3S2,242 T.
 l. also appears that the bank is indebted fol ) :i122,399 v obtained on the 7th Sept. 194O rom the North American Trust and Banking r Company, on the 800 bonds which the bank l,ypothecated, and for the interest on the money p to the 1st Oct, 1854, in the sum of S225,