Washington telegraph., 1856-11-12

to, and sold by, the bank to obtain money
to bank upon. The charter provided ''That
both the capital and interest of the said
bonds shall be paid by said bank, as the
same shall become due and payable"
1t is stated that the bank paid the inter-
est on the $50 bonds up to the 1st day
of July, 1S41, and that no interest has
been paid by the bank since that time
Under Gan act to authorize the stock
holders of the Real Estate Bank of the
State of Arkansas, to establish branch
in the western part Of this State, approx
ed February 24th, 1888, one hundred in
dividuals became stockholders and mort
gagged to the State of Arkansas 65, III
acres of land, valued by Commissioners,
under oath, at S776,S40 06 and there
were 500 more six per cent. bonds issued
to the Real Estate Bank of the State of
Arkansas. This bank, in violation of law,
hypothecated these 500 bonds to the North
American Trust and Banking Company"
of New York, on the 7th day of Septem-
Der, Isl 10, and obtained as loan sl21,-
$50 96, The North American Trust and
Banking Company" afterwards, in bad
faith, passed off these 800 hypothecated
bonds, amounting to five hundred thou
sand dollars, to Hoiford & Co, bankers of
London In this manner these bonds
were placed beyond the control of the
State.
!, 1t is evident that it was never intended
that the people OF the State should be
taxed to pay any liabilities on account OF
the Real Estate Bank for the 2SJ stock
holders mortyaged to the State of Arkan-
sas z07 ,l01 acres of land, valued by COM
missioners, under olth, at s3.3SU,7T2 So.
as an indemnity to the State and the hold
7 ers of the bands for the payment of the
capital and interest of the bonds. In ad-
: dition, the act of interpretations, which was
. approved 26th October, 1886, provided,
that the capital and profits arising from its
use should remain with the bank and
: branches, ''unfH the .f"H cnd .faat Day-
ment Of the bonds IF the !S:atc, and all
the responsibilities Of said Real Estate
Bunk are .faUy and tinaHy paid cf and
: discharged, ichen Il dicidead shall be
made to tic Stockholders IF all the re
mining funds, to cach an proportion to
| his share Of stock, to be paid IN such IN
stalin,ents as the funds Of. and debts due
f to tie bank, ,eW JutJy being made, from
e time to time, after tie t,rcnty-sccond gear
: of this charter The mortgaged lands
and the assets of the bank appropriated
: by law, were doubtless in good faith, deem
: ed amply sufficient to protect the State
from any loss. And it is now believed
S that, if properly managed, the remaining
assets and the mortgaged lands will be
: more than sufficient to pay every dollar OF
/, the debt on account OF the Real Estate
l Bank.
: We make, as our readers will perceive,
lengthy extracts from the Governors mes
sage in this particular, as doubtless all
persons are interested in being brought to
t knowledge of the 'strue condition OF
t this personifcation of political night
mare:
c On the first day of October, 1856, there
+ were ll60 six per cent. bonds which had
been issued to and sold by this bank, re.
naming unredeemed These bonds will
Il Il not be due until the 26th day of October,
: 1867. The interest unpaid by the Baah
} on the first day of October, 1856, amount
= = ed to S9S7 ,930; but from this should be
: deducted $50, l42 81, funds of the State
retained and applied at the United States
/. Treasury towards the payment of interest
. on the 500 bonds of the State, issued to
and sold by the Real Estate Bank, and
= which are held by the Secretary of the
Treasury, in trust for the benefit of the
Smithsonian Institute. After making
this deduction, the interest remaining due
and unpaid, OH the ist of October, 1856
:. :. was SyzS,1 60; and when added to the
amount of the 1,lGJ bonds, which will
, not be due till the 10th Of October, 1861,
:; will show that the debt of the State for
: bonds sold by the Real Estate Bank; and
interest due ON them, WIS S2.0SS,IST 80
on the first day Of October, 1856.
!, But the liabilities OF the bank were
: s234,l7 % greater. on account of the
: Sl2l ,336 59 borrowed upon the 500 hy-
pothecated bonds, 18th September, 1910
> and the interest on the money to the first
> of October, 1856 For the li6J bonds
= and interest, and the borrowed money and
' interest, the Real Estate Bank owed 81
:, 322,9 ,9G7 90, on the lst day OF October,
1856.
:, By the report of the Receiver in Chan
cery you will see that he states the whole
amount of the assets of the Real Estate
y Bank to be 81, 1886 l3; but o. the
: bills and notes due the bank he classcs as
worthless SiZU,S16 50; and as doubtful
: 800, $50 2S, and the balance OF the assets,
: Iamuunting to 1868, l3S 81, as good BY
. subtracting the amount of assets cE.sSed
as good, from the 2,:5 y ,967 %, for which
I, the bank was indebted, on the 1st of Oct
n ober, 1856, there will be left debt amount
ing to sl,354,SuS SO. But to protect the
e State from loss. and secure the payment OF
( any deficiency in the assets of the bank
the mortgHged lands are liable. There
S were lS0 stockholders in the original bank
: and branches These stockholders mort
( gagged III $50 acres of land, valued by
..o.n u,ic-i..Iaorr ,,ndor natb 81 S.ll Ql:,