Year: 1860



 LiMe Rock, Ark., July IA, '60.}

 Messrs BLACK & BoUDINoT-

 Gentlemen: 1 submit the following brief reply to your note received at this office enquiring in regard to the method of selling the lands belonging to the Real Estate Bank. All applications to purchase arc made to me as Receiver, the value of the land is ascertained and terms fixed by me, and submitted with the facts to the attor- ney of the bank, and the sale is effected if | advised by hlm, subject to approval or re- lection by the Chancellor of Pulaski coun- ", and no other person IS consulted or ad vised with on the subject. The lands not encountered with the stock mortgages are sold for their actual value asccrtained upon the best inform ition l am able to obtain in regard to them IL has been determined in effect by the decision of our supreme court, that the interest of the bank in the lands mortgagcd for stock which have been pur- chased under decrees of foreclosure for mo- nes borrowed on stock credit account, con- sists only of the right to possession until the 2Gth day of October, 1861, (the date when the principal of the bonds lssued to this bank falls due, and the right to re- deem upon the foreclosure of the stock mortgages by the State or bond holders-- This is an uncertain interest, upon which 1t is impracticable to fix definite and cer- tain value, and large majority of the ap- plications made to purchase it, are with drawn, when the parties are advised of the nature of the title or interest they acquire by the purchase, and because the Receiver cannot inform them the precise amount of the future liability to the State or bond holders; and what policy will be adopted by the State in regard to the final settle ment of the affairs of the bank and the foreclosure of the stock mortgages; and whether a stock holder or party holding the equity of redemption in lands mort gagged for stock will be required upon the foreclosure of the stock mortgage by the State or bond holders to pay the full amount of the principal and interest of the stock mortgage, and thus be driven to a suit against his co-stock holders for contri- button, or only required to pay the propor- tion his stock bears to the deficit after the assets of the bank are exhausted; ana whether the lands moltgaged for stock vii be liable for the full amount of the princi pal and interest of the bonds hyphothecatec to the North American Trust and Banking Company or only the amount actually re ceived upon them with interest, and many other questions fully as difficult to deter mine. In effecting sales of this interest, have endeavored to obtain for it, the ful amount due the bank from the stock holder for money borrowed on stock credit accoun with interest to date of sale. In severa instances have obtained more than thi. sum, and in many others, much less, being governed in the price by the quality of the land, the improvements and local advan tages. To determine therefore whether tho interest of the bank has been sacrificed il the sale of lands made by me as Receiver it would be necessary to particularize the tracts of land, so sacrificed in order tha the facts connected with the sales may b, fully stated

 Respectfully your obt serv't,

 GORDON N. PEAY,