Arkansas true Democrat., 1859-02-23
Report of the Standing Committee of the Senate on the Affairs of the State Bank of Arkansas

| | of Arkansas.
 MR. PREsIDENT:-The standing commit tee on banks having performed part of their duty, by making an examination of the report of the Financial Reciever of the State Bank; and further to see if said re- port contained full and correct statement of the condition of the assets of said bank. by comparing and examing the same.
 Your committee find that between the lst of October, 1856, and the 1st of Octo- Der, 1858, the sum of S292 2S was col lected in specie, $700 % in lands. and S36, 944 31 in Arkansas Bank finds. which consists in State Bank bonds. and the same being duly cancelled, absorbs that much of the State debt.
 The condition of the remaining assets of the bank may be put down as follows. viz:
 Debts due the bank which are | regarded as solvent $ 7OOOO OO | The amount due the bank re- garded as doubtful out of
 which something may yet
 be realized 177,756 65 | Specie in the hands of the Financial Receiver out of of which must be taken small amount for contin- gent expences since the 1st
 of October, 1858. 2,003 2S There being no use for said specie in the bank, only to cover very small contin- gent expense, the committee has instructed the Financial Receiver to invest the same in State Bank bonds, from time to time, when there is a sufficient amount on hand to purchase one or more of said bonds.
 Under the operation of the present law the Financial Receiver has full power, to settle and liquidate with the debtors to the bank, and realize all that can be col lected from its debtors, which is to be hoped will be done by the meeting of the next session of the General Assembly, so that they may enact a law, if they should think proper, to sell the whole of the remaining debts due the bank at public auction, for cash in hand, and by so doing, bring the affairs of the bank to final close, so that the bank, its history, and its former un- wise management may soon be erased from the history of the State, and the memory of its people.
 It is to be hoped that the past history of banking in Arkansas will admonish the fu- ture legislator, and the rising generation, who are to assume, and take charge of the government of this State, that banking in any form is an unwise policy, not to be for a moment tolerated, encouraged or suffered to exist
 The great evil that results from any species of banking is obvious to every one During the great monetary crisis that spread over the United States in 1857 and 1858, almost every State in the Union sensiblv felt the financial revulsion, and the result was q great many heavy failures amongst com merclal men, and great quantity of goods and property of various kinds, disposed of at great sacrifice, to meet pressing demands.
 But how stood Arkansas in this eventful crisis, while failures and bankruptcies were every day occurring around her-she had no banks within her limits making loans and issuing promises to pay. The people did not owe the banks, and therefore were not compelled to sacrifice their property in order to pay bank debts. There was an abundance of money in the State, with which to perform and carry on all the com mercial transactions of the people-and remarkable circumstance which ought not soon to be forgotten, is, that while there was thousands of failures in other States, there was not one in Arkansas, and conf | dence in her commercial men was not the | least impaired. And the best reason for this was, there was no banks to be indebt- ed to in the State, which could by any means press them, at time when least prepared to meet engagements.
 This condition of things within the State has been looked to with much satisfaction by citizens of other States, and with other inviting circumstances is now leading hun dreds-yes, thousands of the best citizens of other States to seek homes and settle the fertile lands of this groUing State
 Another important fact can not be idly passed by, that while the people of Arkan- sas repudiates banking in any shape, the legislature has wisely enacted, to exclude from circulation in this State all foreign bank bills, of less denomination than S20 %, which will leave the people with an abundance of sound metallic currency, sufficient to carry on and supply all the or dinary commercial wants of the State.- Your committee cannot, in justice, close their report without saying that the present financial receiver of the State Bank, Hugh C. Wilson, esq, has exhibited no ordina- ry degree of industry in making himself familiar with the true condition of all the debts due the bank
 With full share of confidence that he will, by his industry and perseverance, bring the affairs of the bank to a speedy settlement, at least by the meeting of the next General Assembly.
 All of which is respectfully submitted
 VIM. w. FLOYD, Chairman Of Sen0te cO1n1piTee