The Russellville Democrat., 1876-06-22
ARKANSAS FINANCES. How the Debts Against the State Were Created ana
 on What Account. The Old Real Estate ana State BankS---HoW they Were Established and Man
 aged. How the Directors "Prudent- Iy" Expanded the Circula-
 tiOn of the Bank.
 BY w. D. BLOCKER.
ARKANSAS FINANCES.
BY w. D. BLOCKER,
From the Little Rock Star.l

THE STATE BANK OF ARKANSAS.
 March 9, the directors at the Post of Arkansas received news that all their funds in the Union Bank of Louisiana "had been at tached to satisfy claims by per sons holding notes of the branch" In July, it was resolved that M. Greenwood should proceed to New York to settle accounts with the North American Trust and Barking company. In October $15,700 Gin inconYertible paper) was set aside for the purchase of cotton, to provide, if possible, for the payment of the dividend on state stocks due January l, lS42. TEis was, after news had been re- ceivcd that Mir. Greenwood could not make any satisfactory agree ment with the North American Trust and Bankingscompanyr and that only one of the sureties to the guarantee bond gwen by said company was worth anything. The batesville branch also made its appropriation of inconvertible bank notes for the purchase of cotton, that it might thereby be able to pay it's portion of the div idends on the state bonds; but this process was found so ruinous that it had to be abandoned. Every new issue of notes of course diminished their value. The di- ectory at Batesville repelled with indignation the charges brought against them by Governor Yell. 'We are of opinion that the alleg ed mismanagement and corrup- tion of the Fayetteville branch have been made a pretext for di- recting a system of abuse and oppression against the bank at this place, that is not justified either by the condition or the management of the institution probably 5o promote some long cherished piejudice against the banking system, to accomplish which at this time would be ruinous to the community, or for the purpose of giving aid the fa. vorite project of few wire work, CTS at Little Rock to centralize and make tributary every other section of the state to that place.
 It this strain the directory pro ceeded > through more than five closely written folio pages. On the 27th of December, Gin conse quence of the great difficulty and endless delay in collecting debts due to the banks and even in prevailing on the debtors to re, new their notes, many of whom have suffered suit to be instituted and which are defended and plead against in every possible shape in order to evade the debt entire ly, and delay the time as long a' possible" the Batesyille directo ry resolved "to appoint an agen to proceed to the different coun ties and make the best arrange ments he could"
 The first proceeding, in the yea lS4l, of the directory at Fayette vile was, according to their ''min ute book, to resolve 'to lend tn, citizens $45,0OO," which resolu tion was carried into effect. On the 9th of May, ''the cashier ( Mr w. Nick. Ball) reported to tn
 board the robbery of tho bank and that the four principal book of the bank had been taken there from. And that, on the advic of Messrs. Dean and Murphy, h had offered reward of five hun dred dollars for the robber an
 the books lost, or one hundre
 dollars for each of the books los