The true Democrat., 1857-05-19
REPORT
,.e Joint Committee of the Senate and 'a.,.,.e Of Representatives on the Affairs ,ls state Bank of Arkansas.
 (TO THE SENATE

ua,,.e Of Representatives on the Affairs
 ,.s state Bank of Arkansas.
 Gro THE sENATE.)
 If. President
 The joint committee on banks respect
 r to submit the following report on the
 of the State Bank;
 rss first act that was passed by the legisla.
 was the " act to establish the Real Estate
 n The seconi was the act to incorpor
 .ae Bank of the State of Arkansas
 i. was provided should have capital
 ed excus veiy by the State, and be con-
 bY presidents and directors appointed
 rt vote ot the General Assembly.
 supply the necessary capital, authority
 frln for the issue and sale of s ate bonds
 I. amount of one million dollars. and if
 a,r.ber provided that the funds ar;sin.,
 t,e sale oi the seminary lands. the five
 ,.,unn on the sales of the public lands
 de amount due aud coming to the S+ata
 rlhe act ol Congress distributing tna snr.
 revenue among the several States With
 ,5sr funds in which the State was co,I..,.,.
 .5oaN be deposited in the principal bank
 constituted part oi the capital thereof
 gae rr.lcpf bank was t0 be at Little Rock
 jraacAcs at DateariIle and Fay4ttevifla
 subsequent act branch was established
 Pls, of Araas sas.
 the spring of 1857, an arrangement v,a.
 swth the Uui.eJ States war Gepartmant
 ae sae of bonds to the amount of &3O0 but before i could be carried into e,,,.r'
 banks throughout the country suspet.ded fs payment and only part of this s,m
 < rca.zcl.
 h August, 1857, the banks commenced ..aeoaa with a paid mp capital of S396 GOO #eh was by Nov. the 9th increased to S4l3 5 29 derived from the following sources 8ie of State bonds. .......S SIOOOOO OO $ Surplus Revenue .... 286 156 49 se per ce"l. Iuhd. hd...-......... 26, 725 OO mia'IS I'iIu,' '....-..... ......... 96 30 The total was made up of the followiuo us:
 ace.... ce........................$102,925 925 co 5lIl VI. '.'............. ll3,SNO OO tuclE bank notes . 35ODO 0O sgaau bank notes. .. 330OO c0 w Orleans bank notes and 4e'6s i;'.... n, ......,.......... 33,9OO 0O cs q Planters and Agrcural
 S'o. Mississippi, pi.,.,........ 95.583 83 Ms o various banks and small a'oSe..................... 89G 46 l l. the banks throughout the Union were
 ma state oi suspension, the mana,ers of BWk ot the State of Arkansas. did flor n Y advisable r. issue many notes pavahleI | demand; tut instead thereof issued notes aots twelve moa,us after date. Ote of the l aets prote~s-div lH View in estab shing thi, l K. N"s that ol suppl ing the State with q i cfcuiatlj 7 medium; and ii commenced Il -.1t'. hS HF circulating the notes of distaut \ AoA-sI'ec'e epdIinl banks, sc me ofWaich ul- proved I" b' utterly Wortbies..a l Iv f~- s q. .J0 own WHehsas they increased the mass les sholredeemab,e m sptce.served sGll fu,- l o -epftc.aje the currency and increase l "Mcoly oi resumiug specie raymcuts.- e-s tturc Qt is ncXt session. sauctinl,nd E Ioa0N, iA authorizing the president anl ar- Of tHe principle balA to s~u. .sIl J'e cilzela of the State @2UOODD in. notes; and by authorizing each of tb4 eues to issue post notes, not exceeiiug two ae Of the capital pa.4 ia
 August 1858, bonds 10 the amount of mHAon dollars were sold to uhe North cu Trust ald nanAt9z Comtst,y fo, \ 100O in cash and the rr~.l1e iu mouthN
 Imeats from January, 1859, to FeLruarv. tl h three months after tnls safe wa, d. ], tAe eircUlation of the State Bank a.d
 uaohes amounted to Sl6l, ,775, of which
 ol0ro ~.stti ol notes payable ou demand,
 @5'rJ33 ot pest notes lot yet arrived at .atr. The aggreglte of the bonus and 0H'- oi the bank and its branches was 1L757.
 1 l4sNas the condition of the State Bank II -1 the Real Estate Bank commenced ope- January l839, the State Bank and its t-eN commenced tine regular rav meuts ec' Tor ther notes, and continued to bay e lii NoV. lh the same year, when there 2 general but not niyeraa. suspension ou At oi the banks of the south and west N-.aDor l6f0, the principal bank at Little resumed specie payments, Lut WAS not fled therein by the branches According to statement dated Oct 31 18IO. F cllaul oJ t4e bank aud il, three branches F ".ted to SL5O2,7lG, the lands and d.s- E ts to SlG1J,S25, the Io.es ia circul.- F to 13o6e6J, and tile specie to @2u3. SIS. N 4e circulation only &263J5 consisted o. t o. Ae principal bluk.
 t-e --I ot Decemter lsto, an act was II which, among other tAm5s provided E ls State Bank and its brauoAea should II Ae and continue specie payments, slmui- r.N "llh tie banks Of Louisiaua iel-
 And Alabama, and that they should
 -uu su-I end. under any eoIs loraEou
 Fer" This aes did not prove effective
 tDe 3lst oi January, 1913, an act Wa,
 v place tue State Bank in iquidaron
 aenu5 to tll+ m ta-ure, Gnv. Adams sa.u
 message Of Nov. 4.n.. l8I4, that tits
 .4eo, couit not b. 4u 'stioucd. Sirrc the III -as hDeu aIatr-olI- the process pl qUI-
 .as cIcUauon has beeu reduced from
 "H comparatively small amount pr,iu-
 ..e same timc ds little opI ressiou to
 community as tAe General Assembly could
 cpuca."
 II years afterwards the joint committee os. in report dated December the p |,
 expressed d very different opinion.
 l-e acto the legislature, passed at the ses- oi 1912, placing the State Bank au4
 ,les lu lqulaHoa, has entirely failed to
 tae eXpea.aluns of is authors. I-' aQa AI, n5t breu beneficial. but iu a .I,tt| sfe disastrous to the best interests of the
 aud tue State. The very General As II + 'H4-i litNNGi lHt Sila act were iIt
 I" disregard ts provisions Ly using from
 '1A.-s ot the bank large amount of spe-
 lay themselves, and for other purposes,
 ie>oenmg the mea,s of the bank to con-
 A.A the said law. And the next General As
 followed suit by also ordering to ue ta-
 4yn the vaults oi the bank, to pay them II and Tor other purposes, every remaining II do.larbent upwards of $50, O0-thereby H a raugnt the said act of liquidation had pledged the faith of the State that specie should be appropriated to pay the H said bank. The truth is the State live. ou the means of the bank from 4mguc-ment and as long as 1t had dol- | reply to thi~ 1t might have been said, that bank "as el,trely the creature of the State; ~ho.c capital hal been supplied by the | tla, it AaI swallowed up all the avalla- II mats oi tue State government; aad that -.N 4nN- sU"A spf.i. as remained ot the
 stAe State hat supplied, there was no way
 Fi.aNnS the ordinary expenses of govern-
 Iom,e the mouutat that time by taxa.
 Was mlossb.e The two bank, had by their
 FentoH, first driven spec.c out oI crcu-
 In ,Ii.l sr I4..it f.t