Arkansas true Democrat., 1858-11-03


 to the first day of January, 1857, was $79, l25- 7S. But in accordance with requirements of the joint resolution of Congress, approved Sd March, l945, this money was, from time to time, 1t accrued, retained at the United States treasury; and S7l, ,S64 O9 of it applied by the authorities of the United States, towards the payment of interest on the 500 bonds of this State, issued to and sold by "The Real Estate Bank of the State of Arkansas;' and the resi- due, S7,26l 67, towards the payment of inter- est on the 128 bonds issued to "The Bank of | the State of Arkansas" By the tariff act of | 3Oth August, l842, the act of Congress to ap- | proprlate the proceeds of the sales of the public lands, approved 4th September, 184l was modified, and the distribution of the land fund to the several states suspended. But before the modification of the act of 4th September, l84l, the sum of $5,O12 16 had accrued to the State of Arkansas, and, under section four of this act, was retained at the United States treasury and S4,6oS l5 of 1t applied by the authorities of the | United States, towards the payment of interest on the 500 bonds issued to the Real Estate Bank; and the balance, S354 O1, towards inter- est on the l26 bonds issued to the Bank of the State of Arkansas. Therefore, from the S631 142 50, interest, unpndby the Bunk the State | of Arhansas, on the 1st October, 1858, the sum | toward the payment of interest on bonds issued to this bank, should be deducted, and then the whole amount of interest which remained due and unpaid, on the 6l6 outstanding bonds is- sued to this bank, will be shown to be S623,- 526 92. The principal, not due. was S6l6,0OO; which added to the interest, will show that the whole amount of the debt on account of the Bank of the State ofArkansas, was Sl ,239 526- i s. on the first day ofOctober 1858.
 To the report of the Financial Receiver of the | Bank Of the State of Arkansas, you are respect, | fully referred for intelligence in regard to his | official transactions. It is recommended that the existing law be amended so as to authorize the receiver to employ special attorneys; and that two years longer be allowed for winding up the affairs of the State Bank
 The Land Attorney and State Collector has rendered considerable aid to the bank; but as the other regular business of his office often re- quires his presence in one direction and the bu- sness of the bank needs attention in another, he cannot at all times render that service to the bank which is necessary. By the report of the Land Attorney and State Collector, you will see that he has been energetic and successful in col lecting funds of the State.
 William M. Gouge and Archibald H. Ruth erford, the State accountants under the act of 18th January, 1857, after long, tedious, and laborlous invest gaton of the confused affairs of The Bank of the State of Arkansas'' have made very elaborate and able report to which you are respectfully referred as source of much information concerning the past history and present insolvent condition of this bank.
 After deductng all of the assets which will probably be collected, the Executive estimates that the debt of the State on account of the State Bank amounted to about one million and one hundred thousand dollars, on the first day of October, 1958
 "The Bank of the State of Arkansas" and The Real Estate Bank of the State of Ar kansas were created in the year 1856. These are the only banks that ever had existence in | Arkansas.
 The State Bank belonged wholly to the State and no other stock-holder has ever had any interest in 1t. The General Assembly elect ed its chief officers and they appointed their subordinates. After lingering through a lapse of nearly quarter of century, the State Bank IS about to pass away--but the State ac- countants have recorded much of its history This will remain to perpetuate its memory and to warn the people of Arkansas against the establishment of such institutions in future
 It is recommended that a law be passed to effectively prevent the circulation in this State of any bank note of less denomination than fifty dollars. Such policy would cause gold and silver to flow into our State, and would afford substantial benefits to the people.
 For information relative to the business of the Real Estate Bank you are respect fully referred to the report of the Receiver in Chancery. This valuable report shows that the policy established for winding up the bank works well, and if strictly adhered to and faithfully carried out, will protect the State from any loss whatever on account of the Real Estate Bank
 The report contains a complete list of the lands which the receiver Is authorized to sell
 By the report of the auditor you will see that 58f bonds of this State, issued to and sold by the Real Estate Bank, and also many coupons for interest, had been redeemed, cancelled and filed with Che State Treasurer 9s9Eogg tPa fit t5 a,-o', .ay "'i rf3 10, and that the first day of October, 1858, 946 of the bonds issued to and sold by this bank remained unredeemed and upon them the interest due and unpaid 6y Me bank was S0l5 $50 OO, making for principal and interest Sl,99l $50 OO: but from this should be deducted S76, ,522 23 the amount of money of the State retained and applied by the authorities of the United States, as required by the joint resolution of Congress- of Sd
 
 of this State, issued to and sold by the Real Es- tate Bank, which are held by the United $ ates as trast funds and then the whole amount for principal and interest will be shown to be S1,- Sl5,3O7 v.
 You are respectfully referred to the report of the Solicitor General of the State of Arkan- as, for information concerning the suit of the State against the late trustees and officers of the Real Estate Bank; and also relative to ma ny other important suits to which he has at tended in behalf of the State
 After the State commenced suit against the trustees and officers of the Real Estate Bank to have them removed and held to ac- count so that the assets of the Bank might be collected and applied to the payment of its debts, certain suits for large amounts were con- menced against the State upon bonds of the State issued to the banks. In December, 1854, these suits were pending and there were serious apprehensions entertained that they would re- suit in judgments. and, under these forced sales and the sacrifice of all the lands and other available assets of the banks the breaking up of the stock holders of the Real Estate Bank, and finally in driving the State to lepudiation. The assets of the banks were appropriated for the payment of the debt of the State, on ac- count of bonds issued to, and sold by the banks; and the State was using efforts to make the as- sets available for that purpose.
 In the suits only copies of the bonds were filed. And to protect the interests of the State, and of the stockholders of the Real Estate Bank, and all others concerned, an act was passed by the General Assembly of this State, and approved 7th December, 1854, which pro. vided, |" that in every case, in which suits or any proceedings had been instituted, to enforce the collection of any bond or bonds issued by the State, or the interest thereon, before any judgment or decree should be rendered the bonds should be produced and filed in the office of the clerk, and not withdrawn until final de- termination of the suit or proceedings, and full payment of the bonds and all interest thereon, and might then be withdrown, cancelled, and filed with the State treasurer, by order of the court but not otherwise" This act also pro- vded, that in every case in which any such suit or proceeding had been or might be instituted, the court should at the first term after the con- mencement of the suit or proceeding, whether at law or in equity, or whether by original or cross bill, require the original bond or bonds to be produced and filed; and if that were not done, and the bonds filed and left to remain filed, the courts should, on the same day, dis miss the shit prOceediup or cross bill