The Russellville Democrat., 1876-04-06

Inc COhtTOl a0a QIFecllOn Ol InS the state. The principal bank was located at Little Rock, with branches at Fayetteville and Batesville. The principal bank had a president and twelve iii
 rectors, and each branch presi. ident and nine directors, elected by the general assembly. And another branch was afterwards established at Arkansas Post Section l3 of the act creating the state bank is as follows:
 "That the funds arising from the sale of the seminary lands the five per centum on the sales of public lands, and the amour, due and coming to the state under the act of congress, distributing the surplus revenue among tine several states, with all other funds in which the state is concerned shall De deposited in the princi pal bank, and constitute part ol the capital thereof" etc.
 Section l7 provides ''that in or. dor to facilitate the president and directors of the said Bank of the State of Arkansas, in negotiating tho sale of the bonds, and obtain. ing the loans, as specified in the first section of this act, which .is to form the capital thereof, the faith and credit of the state is hereby pledged for the payment of the principal and interest oi the said sum of one million dol lars, and the governor is hereby authorized and empowered to sign and the treasurer to countersign under the seal of the state, one thousand bonds of one thousane dollars each, bearing interest a, the rate of five per cent. per all nun, payable semi i-anL ually and redeemable in fifty years" The charter provided that no mortgage should be taken on land not in cultivation, and that not more than $l0,000 should be loaned te one person. Section 2S reads as follows:
 "That the bills and notes of said institution shall be received in all payments of debts due to the state of Arkansas" The char, ter provided that the amount of loans, discounts, etc., should nev- CT exceed three times the amount of capital, and that the money should be apportioned to the va rious counties, according to repre- sentation. That IS, the people in each, were entitled to loan of so much, if they desired it.
 This bill was passed in the sen ate by vote of 13 to 3. The yeas were Messrs. Ball, Clark, Ferguson, Hill, Izard, McCanny, MeKean, McLain, Ringold, Smith, Saunders, Thornton, and William son. The noes were Messrs. Brown, Kuykendall and $. c. Roane. In the house there was no division of the vote, it being unanimous.
 Messrs. Wm. Nj. Couge and A. H. Rutherford, appointed by Gov. Conway, to inquire into the con dition of this bank, under an act of the legislature, approved Jan. 18th, 1855, in their report to the governor, say: 9
 "When the act to establish the bank was passed, it was confident ly expected that one million dol lars could easily be raised by the sale of bonds, and that $3S2, ,333.32 would be realized in specie, or its equivalent, from the states share of the surplus revenue of the United States. Instead of mil lion, snly $l00,000 were obtained in exchange for bonds, and in stead of $3S2,333.32 from the United States surplus revenue, only $2S6,757.47 of this last amount. Only $9l, ,167.67 was in specie. The residue was in the notes of the non specie paying banks of Ohio, Kentucky, Louis. jana and Mississippi.
 "The directors of Little Rock were not the men to be daunted by difficulties. On the Sth of August, 1887, they commenced discounting. At that time all the funds actually on hand were 800 900 in gold and silver, and $6G,- 900 in Ohio and Kentucky bank notes. But they enlarged their ability to lend by the issue of post-notes, payable twelve months after date, and the treasurer by to receive such notes for all public dues, made them the official money of the state."
 A special session of the general assembly commenced at Little Rock on the 9th of November, 1887. On the Sth there was laid laid before the senate q report from Major Jacob Brown, the president of the State Bank, show ing the difficulties the directors had encountered, and the extent of their operations, From these it appeared that tho amount of capital paid up ta November 6, 1887, was $4l3,l06.29, and that it had hesn derived from the follow. in9 sources.