Arkansas true Democrat., 1860-11-10

and 4l5 of the six per cent bonds had 1 been redeemed, cancelled and filed with the state treasurer. On that day there re- mained unredeemed 25 of the five uer cent. bonds, which will not be due mil inc first day of January, lSs7, and 5s5 of the six per cent. bonds, which will become due on the first oi January, 1868. The bonds and coupons, of this bank, redeemed. cancelled and tiiet with the state treasurer. before \ the lst day of October 1860 amounted, I when fedeemel to Ss956, 569 B. On he first day of0 t. 1860, the interest due and
 npaid on the 16l0, 1o,itstan ling an gllf,e- 'leemed bonds, amounted to s677,7l7 5o, which sum, aided to the principal, not yet due, makes Sl 2S7717 50; but from. this should be deducted the Sls9,000 co, be- !. fore alluded to in connection with the order of the chancery court, and then the de0t on account of the Bank of the State of Arkan- sas, will be shown to be S1,O93,7i7 50.r A plan for paying this debt has been re- commended in the preceding part of this message. There are so few available assets of the Bank of the State of Arkansas, that, under suitable legislation, the trra- surer of the state might be made ex o'hclo finan neial receiver, and attend to closing up the business of the bank.
 The constitution of the State of lrkan- sas gave power to the General Assembly, to incorporate banking institution, cal culated to aid and promote the great agrl
 cultural interest of the country and to pledge the faith and credit of the state to raise the funds necessary to carry 1t into operation; ''Prouided, such security can
 he given by the, individual stotkhoterS as
 will guarantee the state against les or in- jury" In the exercise of the )ower so granted the Gessra M AsSsmsy y ss sssea os State of Arkansas" approved Oct. 2Bth
 1856. This bank was to saveg. ah original cash capital of two millions of tollars, to be raised by loans or nego ;iations on the se- cnrlty of real property. at its cash value, with the guarantee of the pubic credit"
 Before any bonds were isued by the state to the bank, as securityto guarantee the state against loss or inju,T, and as se- curity to the bondholders forthe payment of the bonds and the interest ,n them, the 1S0 stockholders in the oiigral bank and branches mortgaged l27 ,520 }5-l00 acres of land, valued by commissioners, under oath, at $2.603, 932 B. lTlder the act, approved February 24 h, 1S5s, to estab- fish the western branch, 100 persons be- came stock holders in the Real Estate Bank, and mortgaged 60290 24 100 acres of land, valued by commis yio e., under oath, at s776,Sl0 06, making in all 1S7 ITO S9-l00 acres of land, valued at $3,3 e. 772 3S.
 On the first day of October, 1860, there were S99 six per cent. bonds, which had been issued to, and sold by this bank, n- maining unredermed. These bonds will be due on the 26th October, lS6l ne interest unpaid by Me bank, on the lst l.v l of October, 1860, amounted to Ss935, 9Q5 l %. but from this should be deducted S15d : l 079 p, funds of the state retained at the | United States treasury, and directed to be applied towards the payment of interest on 1 the 300 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 deluction, the interest remaining due and unpaid on the lst day of October, 1s60 wasl$755, 825 2S, and when added to the s99lbnnls, will show that the liability of the sate for bonds sold by the Real Estate Bank. and interest due on them was ss1 654,S25 g. on the lSt day of October, 1860. But tle bank had an additional liability for primo pal and interest mp to the first day of O. tober, 1860, of S267 405 T, on account of the $l2l 336 59, borrowed by the bank on the 7th September. 1S40, upon the 5d bonds of this state, which the bank, in 6- olation of law, hypothecated to the "Norh American Trust and Banking Company banaS As% anA placea nsf the 6ep0onaa t sdnro of the state
 For some information on the ubiect of this fraudulent disposition of hese 500 b'nds, you are respectfully referred to pa tes 25 to 30, inclusive, of the appendix of the journal of the House of R RpreSenta- tives of the General Assembly of this stale for the session which began on the 7th November, 1S42. These hypothecated bonds were issued by authority of ''an act to authorize the stockholders of the Real E~tate Bank of the State of Arkansas, to establish branch in the western part of this state," approved February 24th, 1888.
 Under the acts of 26lh October, 1886 and 18th December, 1887 there were 1 ,530 SIX per cent. bonds of this state. issued to and sold by the Real Estate Bank of the State of Arkansas. 631 of which were re, deemed, cancelled, and filed with the state treasurer before the lst October 1860, as fully paid off, and 45 more of the unre- deemed bonds were deposited before the lst October, 1860, with the state treasurer, as trustee, under sections eight and nine of the act of the General Assembly: amend atory of the act establishing A separate court of chancery, approved 18th 'Ianrary. 1897, to protect from sale certain lands mortgaged for stock in the Real Estate Bank
 The whole amount of the state bonds and coupons issued to and sold by this bank, and which were redeemed, canceed and filed with the state treasurer, as fully paid off, before the 1st day of October, 1860, was Sl 235, ,347 10. If to this be added the $150,079 72 funds of the state re- tained at the United States treasury to pay interest on bonds issued to this bank, it will be seen that the amount of the state debt, on account of the Real Estate Bank, which was paid before the 1st day of Octo- Der, 1860, was 1885 426 S2. If we add to this the S956, ,569 B, for the amount of the State Bank bonds and coupons cancelled and filed with the state treasurer, as fully paid off before the lst day of October, 1860, It will be seen that the payments on the state debt, on account of the two banks, amounted, on the lst day of October, 1860, to S2, ,34l ,996 IT, as before expi~iiisa and s'a If dduttftron cnts aiiio,'"c o' Psy dtentS on the state debt, on account Of bonds of the state i>sned to, and sold by the banks, there were redeemed, canceled and filed with the state treasurer, as fully paid off, on the 30th June, 1860. six bonds, each fn G