438. Real Estate Bank of the State of Arkansas (Little Rock, AR)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 31, 1843
Location
Little Rock, Arkansas (34.746, -92.290)

Metadata

Model
gpt-5-mini
Short Digest
5c5d5531c84d52c2

Response Measures

None

Description

Articles describe legislative actions, forfeiture of the bank's charter (July 29, 1844), an act to liquidate (Jan 31, 1843) and ultimately a chancery decree divesting trustees and transferring assets to a receiver (assets transferred to receiver on 1855-04-25). No bank run is described; the bank was effectively wound up and a receiver appointed, so classification is a suspension/closure (permanent closure with receiver). OCR errors in original text corrected (e.g., dates and phrases).

Events (3)
1. January 31, 1843 Other
Newspaper Excerpt
The Assembly passed, and the Governor approved, January 31st, 1843, An act to settle and liquidate the affairs of the Real Estate Bank of Arkansas.
Source
newspapers
2. July 29, 1844 Other
Newspaper Excerpt
the charter bank... was accordingly done by a decree of the supreme court, July 29th, 1844.
Source
newspapers
3. April 25, 1855 Receivership
Newspaper Excerpt
under proceedings... a decree was rendered... on the 20th of April, 1855... the trustees were divested of all the assets of Real Estate bank, and the same were on 25th day of the said month and year transferred to the receiver appointed by the court of chancery.
Source
newspapers

Newspaper Articles (3)
1. June 19, 1844 The Arkansas Banner Little Rock, AR
Article from The Arkansas Banner, June 19, 1844

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Article Text

the last session. Procure it! It is needless to go further than the Real Estate Bank itself. The idea that a Bank record is sacred while in the hands of an enemy, is preposterous. I never doubted it. The idea that you would publish all of any thing, not in your own favor, and yet in your own control, is equally absurd. A few more remarks and I will shake hands, and part company with Messrs. Newton and Pike, to meet no more, unless further cause shall arise. These words I address to is a to the candidate citizens for of this the State county. Senate, Mr. Newton represent Pulaski county. It is usual for candidates to lay down their offices when they take the field. It should be done in this case. The Bank is a heavy load to carry. But perhaps the gentle persuasions and mystic influences of the Real Estate Bank can draw more votes than its odium will drive away. But still, to elect the Secretary of the Bank, its salaried one upon to the of this the when officer, rich county, and it, who legislate represent has grown for prosperous people State, and the Bank must be a matter of some have the servant tion in shape,-to subject legisla- of the Bank participating, and debuting, and weilding his Bank influence in the Senate, and at the same time receiving pay from the Will the Newton Bank Bank, is lay wrong-utterly down his Seceetaryship wrong. of Mr. when he takes the field? No. Will he do so when the election is if elected? it when he his No. Will he resign over, takes seat in the Senate of this State? No, he never will do it, unless it be after a promise on the part of the assignees to replace him, at the adjournment of the If an as this shall he avail will his understanding may resign, and such of what legislature. exist, resignation be where the people are concerned, since his Bank interest will not only be the same, but even greater than before? These things time will solve, and we shall see. 1 now seriously ask of the people of this county if it be their intention to elect to the State Senate the Secretary of the Real Estate Bank In conclusion, if all this be true, or any part of it, (and it has come to me as true and can be corrected, if untrue, by those interested) ought not Mr. Pike to be removed Will the assignees and stockholders all sav not? And will Mr. Newton, who in time, must necessarily become deeply interested and be to atand in canvassing afterwards, this if county elected, required electioneering, tend to important public duties, be considered, by the assignees, a suitable and proper officer of the assignment? Or if he will run, does he not owe it to the assignees, involved as deepley as they are to close the assignment successfully, that he should resign, and not subject them to loss, their business to neglect, and their reputations to unjust and torturing suspicions ? PULASKI.

2. January 15, 1845 The Arkansas Banner Little Rock, AR
Article from The Arkansas Banner, January 15, 1845

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Article Text

ne on of appropriations State Treasury, excess and payable out of officers the and Bank Agents, account of above Bank the $32,666 66, executed paid by the Bank to for money borrowed Estate over the State Governor and redeem 32 bonds Gener- of the by Real 17th. To Bank. pay salaries 00. of Adjutant for il of 18th. the To State, pay $100 for advertising landssale for taxes, $350 Agents 00. for selecting or loca- 00; 19th. To pay 500,000 acres, $3,500 ting to lands provide of the that the Internal expenses, which shall iccurred, defray its and own which have of been out of the ordinary shall fund, have and payable The Auditor improvement Revenue been, the State Treasury. of the to fund, accruing donated to 500,000 acres Internal provement charge and the are the account of of land from Internal the Improve- the sale said Im- the of State for the the sum purpose of $15,500 00, the and Internal ment,) shall be reimbursed into the from State Treasury, shall be when received by the said fund on the sum Improvement fund Treasurer Au- for placed and to the credit and be of used as other funds of the Here expenses follows a number Small of sums for to of services, ditor's the ent various kinds books, persons of State. &c. enacted, appropriations That differ- the Re it further of the State Financial Receiver at the Little Rock, be if and of authorised and of the Real hereby SEC. Arkansas 2. of the required, Bank practica- which he Es- is exchange any notes hand, or Bank and State Bank, for shall be sold on hand by the State, and thereon, to pay for bonds and time of such bonds, State tate ble, to due at Branches the the in interest the on par purchase only, which State said and or with said so redeemed shall that any and filed with cancelled, exchange may be State bonds duplicate notes the at receipts State Treasurer, therefor, Auditor. be who shall grant be filed with the take the Financial receipts be redeemed, and such bonds the amount paid for to redeem separately duplicate any one And of which shall shall from Receiver interest, the person shall principal from also showing whom such file the the amount one paid of which for receipts he shall Sec. 3. Be hand, or in the funds now on of the Bank bonds, with Auditor. it further enacted, the That hands of here- all the par Financial Receiver which may of Arkansas, in any wise, after come to said into Bank, except special be immediately longing State of the his and hands shall all deposites placed beunder the made by individuals, to the State Treasury, of the and Treasurer of the State, upon of said to therein transferred control his duty official responsibility. Treasurer all And it shall be after the the and passage take of charge this act, of and receive of said funds of such now in receiver the to deliver fast as they the hands to and all other par funds said as Treasurer, apply immediately and par er, for hands Receiv- same, may and one his duplicate shall file with the Auditor, credit of the such receipts as with the revenue fund. shall take come Bank which charge into he his surplus amount Treasurer, receipt of for the and That same, all who the SO of much of 4. the Be it further enacted, or which may SEC. funds now on of or in this act, be, said come par to hand, provisions the hand, of Treasury and the State, under the specially appropriated the set same apart is hereby, for the express of this purpose General of pay- As- and and the members and mileage, sembly, ing, first, both their per the diem expenses thereof first and duofficers, and to be paid for the any present of said par funds are and paid other of Sevier, is the of the State the first quarter of declared any foregoing before ring their [Mr. Brown, feature]-the purpose session, whatever, liabilities author the then- out of pre- the year, which is 1st October have commenced and to buy $1,515 the 84 direction of the (1844), books, under liabilities sent incurred fiscal during on the hereby legal worth of com- last to of And second, after the State of that the first may quarter of liabilities the present and the State ration year. mon the Auditor. school of That all the Government, be legal incurred the present incurred fiscal expi- year, fiscal shall ex- afpenses day of the of the State, ter at the Treasury when there in par in the payable be paid the be sufficient first funds, par funds and on the same. Treasury Itshall may to not any legal demand Treasurer, on application be pay the duty of the issue to him a Treasury inof warrant, the claimant, for the amount to due, bearing no terest. 5. Be it further enacted, That or member if any Sec. the State Government, Assembly, officer of the present for officer first day of said created since since or the of State General fiscal year, pay- any that liability of the the Treasury, in he is legal drawn from uncurrent funds, of ten days after shall secure to the and pay hereby funds ment time have of within authorized said liability Treasurer, to return who the said to passage uncurrent such perspecie in lieu for all specie this such act uncurrent funds, thereof, and the so Treasurer paid by

3. May 5, 1857 The True Democrat Little Rock, AR
Article from The True Democrat, May 5, 1857

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to said bank, in a large amount, one hundred and fifty thou-and dollars, no by same can least that provision is recollected, made in the deed in trustees cannot sue trustees to Rock to assets bringing case as hands well which Little The themselves." settled by the principle sought chancellor surrender the be law compel before that of the Pulaski the Judge it local being in ground circuit board Clen- their a he to on of denin, court;but want sitting jurisdiction. declined interfere the the then brought the case before suand Lacy that the assignment was preme decided They court, Judges Ringo Dickenson dissented both and from valid and expedient. Judge this oninion. "Governor Yell had a motion made that the should be reconsidered. But this producbut a flurish from Judge Dickenson, to virtue of the (himself a debtor and independence nothing the bank) judiciary. about made the an debfor own conIn this way was themselves, assignment their benefit, by the State the deeply in its good madeprived the parties mo pagement, tors firmed, to most and interested of and all the share bondholders, in trust. When the legislature met on the 7th of No. 1842, Governor Yell, in his message desounced sys the State as but vember, to them, of productive the whole of banking nothing and as the been of wilful its propriety tem evil; chariered guilty privileges, and Real he palpable Estate suggested bank violations the had of its charter, of revoking if that could be constitutionally effected. The effect upon the State under the assignment, is," he said, " to place the assets and management of the bank, beyond her control, throw the whole responsibility upon and to pay interest the bonds the State to the on now due." To the same legislature the trustees presented a memorial in which they stated that they were willing to surrender their charter, SO far as related to banking privileges, and proposed that board of commissioners should be appointed by the legislature with all the powers neces sarv to be exercised by a board of visitation Also, that the powers of a to up and corporation inspection. of should the bank. be given them wind the affairs The Assembly passed, and the Governor approved, January 31st, 1843, " An act to settle ad bank of act a liquidate Arkansas." the affairs This of the gave Real sanction Estate wall the of trustees additional it assignment, powers important and they granted provisions had the asked of for. the all deed the But provided that instead of fifteen self-appointed trustees, there should be ten elected by the stockholders, and five by the General AssemIt does not appear from the minutes that the trustees even SO much as took the act into consideration. Rather than give p their self-constituted trust, they chose to forfeit the charter bank, which was accordingly done by a decree of the supreme court, July 29th, 1844. It was further provided that if the stock holders should not accept of the liquidation act, the circuit court of Pulaski county should appoint ten trustees who, with five elected by the General Assembly, should wind up the affairs of the bank. And, also, that the Goverpor should cause the several prosecuting attorThey's for the State to sue every stockholder on bis stock bond and mortgage. The General Assembly elected five trustees, but, through some unexplained reason, the other provisions of the law were never carried inco effect; and the self-appointed trustees conissued to act as if no such law had been used. In April, 1844, they chose five of their own number for resid lary trustees, and committed them the whole management of the trust. At each successive session, from 1842 onwards, the attention of thelegislature was called the Real Estate bank, by the Governor, and immittees were, from time to time, appointed inquire into its affairs; but there was no furlegislative action on the subject till 12th of January, 1853, when an act was passed, diecting the attorney general to file a bill in chandivest the trustees of the Real Estate bank of the assets of that institution." This followed by an act, passed January 15th, 1855, to aid in bringing to light the true concition of the Real Estate bank of the State of Arkansas;" and, again, by another passed on same day " to establish a separate court of chancery, at the seat of government, so that causes of the State, including that against metrustees and officers of the Real Estate bank, !those of individuals may be determined as early as practicable." Under proceedings instituted under these a decree was rendered in the court of chanon the 20th of April, 1855, by which the trustees were divested of all the assets of Real Estate bank, and the same were on 25th day of the said month and year transto the receiver appointed by the court of hancery.