The true Democrat., 1856-06-17
Extract from Gov. Conway's
 Message.
History and Condition of the Real Est; Bank up to the Meeting of the last I gislature.

Bank up to the Meeting of the last Le
 gislature.
 "The State of Arkansas issued to the Req Estate bank of the State of Arkansas, 1,53O o .her bonds, each for S1 1000, and bearing interes 'at the rate of six per cent per annum. By the sale of these 53O bonds, the bank obtained he: banking capital, amounting to one million five hundred and thirty thousand dollars
 . By the provisions of the charter the bank was bound to pay the interest and also to re- deem the bonds. The stockholders, l8O il number, mortgaged to the State of Arkansas Al, ,98O acres of land, valued by commission CTS under oath, at $2,6O3, 932 32, as an indem- nty to the State and the holders of these bonds for the payment by the bank, of the nteres and the redemption or payment of the bonds It IS represented that the bank paid the inter est on these l,53O bonds up to the first day of July, 104l, and that no interest has been paid by the bank since that date.
 Under the act to establish the western branch of the Real Estate bank, the State issued to thai institution 500 more of her bonds, each fol S1OOO bearing interest at the rate of six pc, cent. per annum; and the stockholders--1OC in number-under this act, mortgaged to the State of Arkansas 65, 121 acres of land, valued by commissioners under oath, at S77684O O6 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 re derhpton of these bonds when due. Bv 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, hv- pothecated them to the "North American Trust and banking company" of New York, on the 7th day of September, 194O and only obtained upon the five hundred bonds, the sum of $122,389 IT, These hypothecatel bonds have never been returned to the State, but by the illegal acts of the bank, have been placed beyond her control
 On the 2l day of April, l842, 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 decd of assign ment was made, besides the principal bank at Little Rock, there were four branches of the Real Estate bank; one at Washington; one at Columbia; one at Helena, and the other at Van Buren. Before the assignment, the State, under the charter of the bank, had two directors at the princi pal bank and two directors at each of its branches, to guard and protect her interests. But by the deed of aSsignmcnt, the State was deprived of her representation in the bank Every officer or agent of the State was and has been exclud- ed. The trustees of the Real Estate bank and thelr two officers, the attorney and the cashier and secretary have had control and manage ment ever since the 2l of April, l842, of the large fund of assets, stated at two millions four hundred and five thousand nine hundred and sxty-six dollars and fifteen cents as we'll as the interest, which, from time to time, accumulat- ed on the debts during this period of more than twelve years and a half. The notes ol d d,Idt tla + ,1 rate of eight per cent. and under certain cir cumstances ten per cent. per annum. The State bonds sold by the bank bear interest at the rate ot SIX per cent. per anum. The ha- bilites of the bank on the second day of April, l842, were stated to be $2,23O,986 59 being Sl74,979 56 less than the assets on that day stated to have been placed in the hands of the trustees under the deed of assi ignment
 The executive has no official report or iu- formation from the bank. showing all its pre- sent liabilities and the amount of assets now re- naming unexhausted But it Is believed. that If the true condition of the bank were known the present liabilities would be near million ot dollars greater than they were on the ? Il day OI Apnl, l042. Ii this be so now and If the trustees and officers received S114,919 56 more ol assets than the bank owed on the 2d day of April, 1912, certainly the people of this State and particularly the stock holders, who mort gagged lands to secure the State and bondhod- CTS, agalnst loss, are deeply interested in hay Ing tuIl explanation and d true statement Of the cause otthlS great deficiency. ItSeemS to me that the interests, credit and honor of the State are too deeply involved, for any officer or le- glsator of the State to do any act which would tend to suppress or delay such actlou as Is ne- cessary to obtain a full and complete explana- ton, let the responsibility and accountability fall on whomsoever 1t may
 Not one of the l ,53O bonds sold bv the bank, has been redeemed and surrendered to the au thorties of the State But by statement of the cashier and seer atarv, shown in statement marked "O," in the auditors report it appears that on the first of October, 1854, the trustees had in their hands l79 of these bonds, and that the interest on the bonds and coupons taken up amounted to $143 l6O leaving un- pad by the bank l, 351 bonds upon which the interest unpaid by the bank amounted, on the first of October 1854, to S1O73, 190 But by information from the treasury department oi the United States, It appears that the sum of S4l,941 29, part of the funds which had accru- ed to thls State from the 1st day of January lS4l, to the first day of January, 1853 on account of the per cent. of the net proceeds of the sales of public lands within the State. and on account of the dstributve share of the proceeds of the public lands, under the act oi Congress of 4th September l84l, had been re- talned at the United States treasury, and ap- piled before the 1st of October, 1854, towards interest due on 500 bonds 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 insti q.
 due on the 1st of October, 1854, on the 1851 bonds, not taken up by the bank, was SlO3l, PAP Il, making, when added to the amount O the bonds, $2,3 1882. PAP Fl.
 It also appears that the bank is indebted fol $122, 389 77, obtained on the 7th September 184O, from the North American trust and bank ing company, on the 500 bonds which the bank hypothecated and for the interest on the mo- ney up to the 1st October, 1854, in the sum O $225, 666 31 which added to the 1882, PAP T makes debt of $2,6O7 9O9 O2, on account O the Real Estate bank of the State of Arkansa. on the 1st day of October 1854. The bond. sold by this bank will not be due until the 26th day of October, 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 ju. dicious administration of our public affairs time will heal the wound again.
 The State of Arkansas will never repudiatt her just debts. She will honestly pay them al wheneversh she can command the means. Wher the bonds of the State were issued to the Rea Estate bank of the State of Arkansas, it was never intended that the people should be tax sd to pay the bonds or the interest on them, but on the contrary, as required by law, the stock holders Qor security to the State and bond holders for the payment of the bonds and the interest on them) mortgaged to the State 2O7 :. 10l acres of land, valued by commissioners under oath, at $3,38O,772 38. These lands embrace many of the best and most valuable plantations in the State The State has no, yet resorted to these mortgaged lands to raise money to pay the interest due on the bonds and it is deemed safe policy to let them re main undisturbed until the large amount of as sets placed in the hands of the trustees, under the deed of assignment, shall have been ac
 T.