The true Democrat., 1856-11-04

65, ,12l acres of land, valued by commissioners under oath, at S776,s4O O6, making in all 207, ,10l acres of land valued at s, ,38O,772 38. 1 The Executive repeats what he stated in a former message-It is a matter of such great interest to the State, that it is recommended that no legislation, whatever, be had, whereby 1thesemortgaged lands nightly any possibility, be released, or the security to the State and bond-holders, in any manner jeopardized.
 The existing policy has produced such bene. efforts will be made to overthrow it, and thus defeat the ultimate extinguishment of every dollar of the debt, by its gradual but sure at- tainment of that object.
 By the progress in the chancery suit now pending, and in the collection of the debts due the bank, it is believed that, ill two more years sufficient data could be obtained to ascertain, very nearly, what will be the pro-rata liability of the land of each stock k-holder, in proportion to the amount of his stock in the bank. Such a policy, if pursued, would extend justice to every stock holder; and he would then the more willingly and certainly use efforts to pay the encumbrance upon his lands, without wait ing to be forced by chancery suit.
 Notwithstanding the apparently ample secu- rity to the State, it will require great caution and strict attention, under sound and just pol- cy, to extinguish the debt by the proceeds of the mor S3Tged lands, forced into market. with out unnecessarily expressing the stock holders by sacrificing, for the benefit of speculators, the mortgaged lands for less than the pro rata liability of the stock holders who mortgaged them. To protect the interests of the State, the bond holders and the stock holders, not a single mortgage should be foreclosed, whether the mortgaged land be held by individuals or the Real Estate Bank until the State is pre- pared with fund amply sufficient and placed under the control of some discreet and prudent authority, to be used to prevent the lands when sold from being Sacrificed; the stock holders from being robbed of the means of paying what the lands would more than satisfy; and to avoid the necessity of a tax upon the people to pay a debt brought upon the State by rashly, and without common prudence, forcing the lands into market, and by their inevitable sacrifice loosing all the security which the State has, and leaving the debt unpaid. It is recommended that the present revenue law be permitted to remain as 1t is; so that in two years, the State may have fund for the purpose indicated, and not suffer these valuable lands, when sold at 1 mn bilc sale In he sacrificed nd tb c ln debt without any means except from heavy taxation to pay it. Without such provision, spectators will reap rich harvest the stock holders will suffer great oss and the State will most certainly continue to bear the burden and stigma of debt which will be left unpaid.
 It Is recommended that suitable law be enacted making the State Treasurer, by virtue ot his office, trustee, and requiring him in his capacity as such trustee, to receive and safely hold Tn trust any of the bonds of this State issued to and sold by the Real Estate Bank of the State of Arkansas which may, from time to tme be so deposited with him, to protect any lands mortgaSed for stock in said bank, whether by the depositor or any one else. The bonds when so deposited should continue to draw in- terest as other unredeemed bonds; and the principal and interest of the bonds should re- main secure from being withdrawn, or, in any manner, made liable for any other debt until the amount of the liability of the mortgaged lands intended to be protected, shall have been hnally ascertaned; and then the bonds and in- k Il
 to pay off the incumbrance upon the mortgag- ed lands should be applied by the Treasurer to the payment of the debt; and any excess of such funds so deposited should then be refund ed to the depostor. The Treasurer, in his ca pacity as such trustee, should grant duplicate certificates of every such deposit, particularly designating the bonds by their numbers and otherwise, and stating the amount of the in- terest due on the bonds when deposited; desig hating the mortgaged lands intended to be pro- tected by such deposit, by the proper numbers and areas, and showing by whom the lands had been mortgaged for stock in the Real Estate Bank of the State of Arkansas, and at what value they were appraised when so mortgaged. One of the certificates so granted should be de- posted with tho Auditor another with the Receiver in Chancery of the Real Estate Bank, and the third held by the deposilor
 The time for the presentation and allowance of claims against the estates of deceased per sons should be extended, by amending the pre- sent law, and making provisions adapted to tho ,,aculiar cop1itiop of z .L D, ol Estate Bank; so that liabilities chargeable to estates of deceased persons, not ascertaned presented and allowed within two years from tue date of the letters of administration, may not be barred and lost Should this suggestion i not be adopted, it is very evident that hun dreds of thousands of dollars will be wholly lost.
 At the suit of the State, the Trustees under the deed of assignment of the assets of the Real Estate Bank, of the 2nd of April, l842 were, by decree rendered by the chancery court on the 2Oth day of April, 1855, divested of the assets of the Bank, and Receiver in Chancery of the assets was appointed by the court. Be- fore this was done, it appears that the Trustees in collecting debts due the bank, had purchas- ed lands that remained incumbered, and which had been valued and mortgaged for stock, at all aggregate sum of nine hundred and sirty- tom, thousand, seven hundred and yftty-seven dollars Should these lands when sold not produce more than the amount for which they were already liable for stock, when purchased by the Trus. tees, the whole amount paid for them out O. the assets of the Bank by the Trustees, will prove to be a total loss to the Bank and an ad ditional liability thus thrown upon the othe stockholders. With regard to the lands mort gagged for stock, the Executive has already re- commended, that not one mortgage be fore closed, whether the lands be held by individu