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From the Boston Post. Sub-Treasury System and the Public The Debt of Arkansas. To the Editor of the Boston Post. Bullionist,' SIR-Your 119 of your correspondent journal, ascribes to me merit No. than can justly as the claim. suggester of the subAnd treasury may system, be regarded but am not must its author. acknowledge myself for the indebted primary suggestion to the framers of the United States constitution. in 1833 published a United History States," of PaEarly and Banking in the into the per which Money was prefixed An The Inquiry plan of the work made to Principles of the necessary System." take survey of of state the league regarded whole ground. As than United States bank, banks as worse even urge the adoption could dono otherwise than and which the still believe, of I the plan which framers then of believed, the constitution had in in view. latter part of 1834 became My position clerk the In the U.S. treasury free intercourse department. with Presiof enabled me to and have Van Buren, with members the memdents Jackson cabinets, and with the bad, bers of their all the reasons could urge, Pet Congress But little effect, till the except with exploded few, in 1837. Being after pre Bank" for system that event, had, pamphlet in ten days ready for the press, and Bank State. pared the fact was entitled ascertained, 'An Inquiry into the That Prono had priety pamphlet of Separating was repub lished in some other of the effect, lead- it ing journals, and, great deal of abuse from and the of friends brought of on both the United States bank the state sub-treasury banks. act of July assisted 4, 1840, there- was The by the Hon Silas Wright, Buren. always framed by President Van in, perhaps, defectiv in its details regarded sub as very treasury act of August 6. before 1846, I Into and the fellow clerk, succeeded when brought introducing that some committee amendments, of Congres but by no means all were desirable. any merit in having for nearly good re- 30 If there in evil report and through and years, conteded through for the separation not of the bank author port, that merit; but I am for nearly state, have system. say editor of the sub- treasury From 1821 1823 was 1823 to thirty United years. States Gazette, Gazette. and from In both of the of the Philadelphia opportunity 1831 journals supported, afterwards so far set forth in allowed, those the principles and Inquiry. At least columns as early the History took stand in the editorial favor of the of as 1830 the Philadelphia Gazette state. in did not stand separation was of bank supported and therein Clement by my C. friends, BidOf ers. alone. George Emlen, Ronaldson, Condy Roberts Raguet, Vaux, and men othdle, James that original band of sub-treasury I alone now left. correspondent gives labors me more In credit like manner than your am entitled to for my Arkansas. to faithfully the affairs disentangle I in It is true that have of the labored Real Estate Bank found Rock Little But when Gould, arrived Wm. R. Miller, esq., the pre- the Judge J. state, John H. Crease, N. Peay, treasurer by sent auditor of of the state, Gordon the court of present the receiver appointed assistant, the late John esq., chancery, and his able engaged in this duty William Newton esq., could remain without in this position Judge Gould found that suffering in his private It afterwards required resigned. the gentlemen affairs, united he soon efforts of myself associated, and the to bring with whom accounts remained of bank and four branches, years. order the through period of nineteen not yet disextend of the State Bank are effort to entangled. in duty, that The affairs I am now engaged in an with A. H. conjunction of the state, treasurer Rutherford, preform esq., the late the financial receiver the Hugh G. Wilson, and J. esq., W. McConaughey, esq., the bank, attorney and land agent. of Arkansas, and state The solid treasury system circulation of all notes the act prohibiting denomination the than five dollars, The merit were less before entered the state. of the state of these authorities, adopted belongs solely to the people and, among and their constituted to Governor E. N. Con- asand way, the latter, the especially last two or three legislative her The have semblies. notion that Arkansas had has its repudated origin in public debt, appears of transaction between Trust the misconception North American Banking Company Estate Bank and the In Sept. 1840, the officers legal any having so the of the to do, bank, pledged without 500 of the Trust bonds and of the Banking Company The for $1000 for each, with $250,000, Trust of which and obtained only $121,336. breach of faith, London. passed ing Company James Holford, of which comthese bonds to of the legislature, At the 1840, these bonds being repre- on menced in Nov., of the bank as sented, in the report trace on the records of eithe There is this surreptitious till ceeding July, of bank the held hand the bank or the state, 1841. of In November of that meetyear stockholders thed that would ing, which they that had thus beet improperly ad disposed the pay mitted obligation pay the bonds of, while they, the the money same time that these been borrowed actually interest bonds bonds. and the the holders of the hy othecated validity applied to In 1841 Governor have To admit their any other strict the knowledged He replied of the state grant involve than by the charter might contract that the of ed payment of any illegal the the of the banks and inflict. the stockjobbers rapacity might think proper legislature in Nov he (and none In his said-" message However to much the people are more of sustain she claims, 1842, Arkansas may her be disposed faith and credit in the would paya ment so) of all just unworthy and legal of the aracter of nevertheless if she tolerated for mome frauduthe idea of paying sovereign state, for bonds illegally and lently disposed the of. obligation to pay disposed bonds that of If denying and fraudulently Arkansas were illegally thus far the people have of carefulbe repudiation, but no further house and the the and which are ly examined repudiators the other journals public of the documents, and of senate, cannot find them repudiating one word any other of the the bonds ces the issued idea by the state. has On had since 1840, governor Arkansas acknowledged the every has in the fullest manner debt, and dark though the times did the same. obligation were to pay 1848, the the legislature, by joint banks. resolution, were issued for the benefit Bank of the in and passed, All the When bonds the act to put the when State the Real Estate liquidation Bank was made an assignment, rendered, that their assets be would them. interest These from the accounts sufficient they to redeem the whole of the bonds vielded and the much less than was have originally been and them, sets expected, have but considerable sums still hoped that the will ultimately to redeem enough assets alized of from the Real Estate all Bank the bonds issued of the bonds yield its benefit, leaving only of the part State Bank to be sued for the provided benefit for. As all the bonds the people were otherwise the benefit of the banks, of the banks issued Arkansas for insist that the and assets so far as they will shall, of be in applied the first to place, the payment of the public 1530 debt. go, For the benefit of the Real and Estate bearing Bank, six per cent. interest, bonds for 1000 were dollars issned each, and fairly disposed
