The Van Buren press., 1860-11-30
Governors Message.
I Concluded. I

There will be laid before you printed cop
les of the reports of the land attorney and
state collector, the financial receiver Of the
Bank Of the State of Arkansas" and the
receiver in chancey of the Real Estate
Bank of the State Of Arkansas
The whole number of bonds Of the state,
sold by the Bank of the State of Arkansas,
was l, 169, each for 81. 900. One thousand
of these were six per cent. and 1885, five per
cent, bonds. Upto the FIRST day of October.
1860, 144 Of the five per cent, and 4l5 OF
the six per cent bonds had been redeemed.
Cancelled and filed with the state treasurer
On that day there remained unredeemed %
of the five per cent. bonds. which will not
be due until the first of January. 1868.
'fhs honda and coupons, Of this bank, re-
deemed, cAncSled and filsd with sss ststsl
treasurer, before the 1st day Of October.
1860, amounted. when redeemed. to $685.
500 35. On the first day Of October. 1860,
the interest due and unpaid on the 6lO out
standing aud unredesmed bonds, amounted
to S577,717 so. which sum added to the
principal, not yet due makes 81 ,2S9, III so;
but from this should be deducted the $780,
| 900 90, before alluded to in connection with
tie order Of the chancery court, and then
the bebt on the account Of the Bank Of the
State of Arkansas, will be shown to be
81, ,09S.717 SO. A plan for paying this
debt has been recommended in the proceed
ing part Of this message. There are So few
available assets of the Bank of the State
of Arkansas, that. under suitable legislation.
the treasurer might be made ex-officio fiuan-
cial receiver, and attend to closing up the
business of the bank.
| nf ha nj
sas gave power to the General Assembly to
Incorporates banking institution, calculated
/ to aid and promote the great agricultural
interests of the country, and to pledge the
faith and credit Of the state to raise the
funds necessary to carry it into operation,
"Provided. Such security can be given by
the individual stockholders as will guaran-
tee the state against loss or injury" In the
exercise of The power so granted, the Cen
eral Assembly passed "an act to establish
the Real Estate Bank Of the State OF Ar
Kansas" approved October 26th 1886. This
bank was to have ''an original cash capital
of two millions of dollars, to be raised by
loans or negotiations ON the security of real
pi pioperty. at it's cash value. with the guaran-
tee of the public credit"
Before any bonds were issued by the state
to the bank, as security to guarantee the
state against loss or injury, and as security
to the Dondkolders for the payment oil the
bonds and the interest on them, the lSO
stockholders in the original bank and BRAN
ches mortgaged 127 $50 65-100 acres of
land, valued by commissioners. under oath,
at S776. $40 Of. making in all. 1910
s72 3s.
On the first day of October, 1850. there
were S99 six per cent bonds, which had been
issued to, and sold by this bank, remaining
unredeemed. These bonds will be due on
the 26th October, 1861. The interest un-
paid 6y the bank, on the lst dav of October,
1860. amounted to 1905 905 90, but from
this should be deducted $3.50, ,079 II. funds
of the state retained at ths United States
treasury, and directed to be applied towards
the payment of interest on the 500 bonds OF
this 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 remain.
ring due and unpaid ON the LIST day of Octo
, Der, 1860, was 1855, ,S25 %, and when ad
ied to the 500 bonds, will show that the
liability of the state for bonds sold by thu
Real Estate Bank. and interest due on then
was 81 ,654, ,S2o %, on the 1st day of Octo
ber, 1860. But the bank had an additional
!, liability for principal and interest up to tn,
1st day of October, 1860, of $267 ,405 II
, on account of the $121, 1886 SO borrowed
: Ly the bank on the 9TH September, 1910
! upon the 500 bonds of this state. which tho
bank in, violation of the law, hypotheca
It'd to the North American Trust com
pany" of New York. This company sold
the bonds and placed them beyond the con
e troll of the state.
: For some information on the subject o
!, this fraudulent disposition of these 5Ot
! bonds, you are respectfully referred to page
25 TO 80; inclusive. of the appendix of TIN
: journal of the House of Representatives o
the General Assembly of this state. for tn
e session which began on the 7th November
1912. These hypothecated bonds were is
sued by authority of "an act to authorlz
the stockholders of the Real Estate Bank o
the State of Arkansas, to establish brancl
in the western part of this state," approves
February Oath 1888.
Under the acts of 26th October, 1886
and 10Th December, 1S47. there were IL,
six per cent bonds Of this state, ..<s,ea !,
and sold by the Zeal Estate Bank of sl
State of Arkansas. 6S.. of which were r,
deene.. Cancelled and fled with the sta,
tr.easurer tefore the 1st October. 1860. q
fully paid off, and As more of the unr'
aeemed bonds were deposited before the l.
October, 1860, which the state treasurer, {
q trustee, under sections 8 and 9 of the ~
Of the General Assembly amendatory of tf
act establishing separate court of char
Gerry, approved 18th January. 1857, to pre-
tect from sale certain lands mortgaged fe
stock in the Real Estate Bank.
The whole amount of the state bonds m
coupons issued to and sold by this banl
and which were redeemed, cancelled an
filed with the state treasurer, as fully pal
off. before the LIST day of October. 1856
was 81. .235. SAT 10. If to this be add.
the $3.50, ,O79 92, funds of the State r.
tanned at the United States treasury to pa
interest on bonds issued to. this bank.
win be seen that the amount of the Sta
debt, on account Of the Real Estate Banl
which was paid before the LIST day Of Oct
Der, 1850, was 81, ,385 ,426 80. 1t we ID
- to this the $3.50. .569 35 for the amount
the State Bank bonds and coupons cancela
and filed with the state treasurer. as full
paid off before the first day Of Octobe
- $50, it will be seen that the Payments I