The Russellville Democrat., 1876-04-20
.LvILLE, ARK. THURSDAY. APRIL 20, 1876.


 circulation amounted to $214,9O0 ard it's specie to $l31,392 Whel it suspended specie payment, No vember 1, 1889, it's circulation wal reduced to $43, ,420, and it's branch es suspended specie payments l November, 1889, they had, on { capital paid in of $l, ,50l, ,OSS, out standing loans and discounts tt the amount of $1, ,644,6l7. Thu. the loans and discounts exceeded the capital in the sum of only $43,5 529. This was very different from what the founders of tho system had expected. They sup posed that "through the banking privilege of issuing three to one a million of capital borrowed from abroad, would perform at home the functions of three or four mill, ions. At this time the circulation of the bank at it's branches amounted to $3Ol.3I0, and the specie in their vaults to $264, 100. As the notes in circulation cx- ceeded the gold and silver on hand in the sum of only $37, 7,210, there was no immediate necessity for suspending specie payment. There were, to be sure, on the books "deposits" to the amount of $162,7l7, but only portion of these were payable on .demand. They consisted chiefly of part payments by debtors of the bank. What was owing by banks in oth CT states, ($142,945, and the notes of other bank on hand ($39,3l3 were more than coun- terpoise for what was dcmandable by depositors, and for the amount in which the notes in circulation exceeded the specie on hand. The immediate means of the bank and it's branches amounted to $469,- 949, while the immediate liabili- ties could hardly have amounted to S40O, ,000. As in the case of the Real Estate bank, so in the case of the State bank, the suspension of specie payments was brought about, not by necessity, but by | policy. The bank and it's branch es might all have continued to pay their notes on demand, but by so doing, they would have put it out of their power to make new discounts, and perhaps have made it necessary to insist on prompt payment of ''curtail and interest" on old discounts. This would have exposed even the directors themselves to great inconvenience. The people wanted relief" and among the people none more than the directors themselves. They therefore determined to susbend specie payments. December ,, 1889, the board at the Post of Arkansas, "resolved, that the res olution of the 4th of April last, suspending discounts by this board, be and, the same is hereby rescinded." The latter part of 1880, and the beginning of lS40. were marked with new troubles. News was received that the North American Trust and Banking company had dishonored the drafts of the branches at Fayctte- vile, Batesville and the Post of Arkansas. The Trust company wished a delay of twelve months on $200, ,000, which it owed to the state bank and branches, or, fl this proposition should not be ac- ceded to, it offered to return bonds of the State which it still held to to the amount of $200,O00. Ma jor Field went to New York as agent of the state bank, and sue ceeded, though not without some difficulty in making some arrange ment with the Trust company. January }, lS40, we read in the records of the Post branch, tour bills of exchange that we have purchased, payable at New Or leans, have nearly all come back under protest. As the year ad- vanccd, trouble thickened. In September, news was received that the funds of this branch in the Philadelphia bank, some four thousand dollars had been attach ed by Riggs x Co.,, of that city. This caused Mir. Luther Chase, the cashier, to address to that house q letter, in which he sad, The suspension of the state bank and branches in 1889, was not a measure of necessity on their part, but one of prudence. By sus- pending they were enabled to ren- der to our merchants and citizens generally, to a limited extent, the indulgence and facilities so much needed by them iu consequence of the sudden fall in. the price of eur exports. In November, news was received that the North American Trust and Banking company had again dishonored the checks of the Post branch. The mother bank had also it's diff faculties to contend with. Thus we read under date of January 27, lS4l, in reference to the col lection of debts: "In all undis- nutad cases indoment is obtained