The Russellville Democrat., 1876-06-15

have been for Arkansas money, and at rates varying from five to ten per cent, while the specie was worth from thirty to forty per cent. premium. They should have used their eastern exchange which would answer the same purpose as specie, and less risk, in the payment of interest on their state bonds; but instead of meeting the interest account with their bills of exchange, they have been compelled, at Fayette- vile, to ship specie or buy bills to pay their interest account. If this policy is continued, by the meeting of the legislature, there will be but little specie remaining in their vaults. Should this un- fortunately be the case, the note holders will be left without the hope of redemption.
 The practice and policy of the respective branches, making large loans for the accommodation of their officers and directors is, in my estimation, in every way un- just and highly censurable, and m disregard of the provisions of the charter. Very many have re- ceived on their own accommoda- tion the full limits allowed under the charter, which was not to ex- ceed ten thousand dollars, 'di- rectly or indirectly and have become security varying from ten to twenty thousand dollars. [Here the governor shows that the liabilities of the directors at the three branches, as principals and as securities, amounted to $475,127.] T do not doubt the security of the debt, as to protest against such policy, which is not only in violation of the charter, but alike opposed to the credit ot the banks and the best interests of the people.
 "The developments in the re- port of the commissioners who examined the Fayetteville branch Gin whose capacity and integrity I have the fullest confidence, may render it necessary for me to appeal to the judicial tribunals to prevent further loss by the mismanagement of that institu- tion. 1 have no other alternative to attain my object without cal, ed session of the legislature, which l consider at this time un- necessary and impolitic, thereby creating 8 large and enormous debt, which I desire to avoid and, besides, I have no assurance that the legislature would carry out the only policy Ca withdrawal of the branches) which can save the banks and the state from irretrievable loss.
 q was not sustained in my policy by the last legislature in relation to the banks, and l have no evidence that they have chang. ed their opinion since; and it is but just to presume that they fairly represented the wishes oi their constituents; at all events until am better convinced of { change in the opinion of the rep resentatives of the public mind cannot reasonably contemplate co operation in carrying out sucl policy as I consider indispensa
 ble to the security of the banks and the credit of the state.
 "The letter-books and minute
 books of inc different boards fol
 the year IS4l, reveal nothing bu
 trouble. Mir. Bertrand, who wal
 sent on special mission by thu
 principal bank, reported that sun
 dry debtors in St. Francis county
 were preparing to move thei
 property from the State. Febru
 ary 26, it was resolved that "il
 consideration of the present stat,
 of the bank, no neN discount'
 other than for directors, shouli
 be taken till further orders.
 Ozark Banner: We are relia hly informed that the wheat crO,