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

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: April 20, 1855
Location: Little Rock, Arkansas (34.746, -92.290)

Metadata

Model: gpt-5-mini
Short Digest: 93d14664

Response Measures

None

Description

Court proceedings in 1855 divested the trustees of assets and a receiver was appointed (April 20, 1855). The bank's affairs were placed in chancery and wound up; no newspaper text describes a depositor run or reopening. Multiple articles document appointment and replacement of receivers and liquidation accounts through 1857.

Events (5)

1. April 20, 1855 Receivership

Newspaper Excerpt: by a decree rendered in the court of chancery ... on the 20th day of April, 1855, by which the trustees were divested of all the assets of Real Estate bank, and the same were ... transferred to the receiver appointed by the court of chancery.
Source: newspapers

2. April 25, 1855 Receivership

Newspaper Excerpt: Col. C. F. M. Noland has been appointed Receiver ... Col. Noland has qualified, and will, we presume, take immediate charge of the affairs of the Bank.
Source: newspapers

3. June 27, 1855 Other

Newspaper Excerpt: the State of Arkansas issued to the Real Estate Bank ... 1,530 bonds ... by the sale of these 1,530 bonds, the bank obtained her banking capital ... not one of the 1,530 bonds sold by the bank has been redeemed and surrendered ...
Source: newspapers

4. November 10, 1855 Receivership

Newspaper Excerpt: Order ... removing C. F. M. Noland and appointing Gordon N. Peay Receiver in Chancery of the assets of the Real Estate Bank. In the Chancery Court of Pulaski County, 10th day of November, A. D. 1855.
Source: newspapers

5. May 12, 1857 Other

Newspaper Excerpt: estimates of assets and liabilities ... Receiver reported collections and valuations; discussion of winding up affairs and likely ability to discharge liabilities.
Source: newspapers

Newspaper Articles (9)

1. April 24, 1855 The True Democrat Little Rock, AR

Article from The True Democrat, April 24, 1855

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THE REAL ESTATE BANK.--Owing to the late hour at which we procured the copy of the opinion of Chancellor Fairchild, and the decree of the court, in the case of the State vs. the Trustees of the Real Estate Bank and others, much of our editorial this week is crowded out. We give the opinion and decree in full, as matters of the deepest interest to our citizens generally. It will be seen by the decree, that Col. C. F. M. Noland has been appointed Receiver, in the place of the trustees removed, and that his salary, including clerk hire, is placed at $3,500. One other fact-it will be observed that bonds issued by the State to the State Bank or the Real Estate Bank, and coupons, are made receivable in payment of debts to the Real Estate Bank, and that all bonds redeemed are to be cancelled and filed with the State Treasurer. Col. Noland has qualified, and will, we presume, take immediate charge of the affairs of the Bank.

2. July 10, 1855 The True Democrat Little Rock, AR

Article from The True Democrat, July 10, 1855

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EXECUTIVE OFFICE, Little Rock, Ark., 27th June, 1855. SIR:-In my message, dated 7th November, 1854, transmitted to the General Assembly, I stated that, "the State of Arkansas issued to the Real Estate Bank of the State of Arkansas, 1,530 of her bonds, each for $1,000, and bearing interest at the rate of six per cent. per annum;" that, "by the sale of these 1,530 bonds, the bank obtained her banking capital, amounting to one million five hundred and thirty thousand dollars;" that, "by the provisions of the charter, the bank was bound to pay the interest, and also to redeem the bonds," and that not one of the 1,530 bonds sold by the bank has been redeemed and surrendered to the authorities of the State." Bv an act of the General Assembly, approved 15th January, 1855, a court of chancery was established at the seat of government; and this court, in the case of the State of Arkansas against the trustees and officers of the Real Estate Bank, on the 20th day of April, 1855, rendered a decree divesting the trustees and officers of the assets of that institution; and the court also appointed a receiver and passed orders, which if carried out, have caused a considerable reduction of the debt or liabilities of the State on account of bonds issued as before stated, to the Real Estate Bank, as well as on account of bonds issued by the State to the "Bank of the State of Arkansas," and which were held by the trustees of the Real Estate

3. November 20, 1855 The True Democrat Little Rock, AR

Article from The True Democrat, November 20, 1855

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Order of Chancellor, based upon the foregoing communications, removing C. F. M. Noland and appointing Gordon N. Peay Receiver in Chancery of the assets of the Real Estate Bank. In the Chancery Court of Pulaski County, 10th day of November, A. D. 1855. THE STATE OF ARKANSAS, Complainant. vs. THE TRUSTEES OF THE REAL ESTATE BANK OF THE STATE OF ARKANSAS AND OTHERS, Defendants. The court having received from his Excelency, the Governor of the State of Arkansas, copies of certain official correspondence between him and Charles F. M. Noland, the Receiver appointed in this cause, which is now filed herein, the tenor of which correspondence requires) the action of the court in the premises, doth hereby order that said Charles F. M. Noland be removed from the said office of Receiver; that Gordon N. Peay be apppinted Receiver in his stead and proceed forthwith to enter into bond and qualify as such Receiver in the manner directed in and by the order of this court made on the 20th day of April, A.D. 1855, and upon execution and approval of said bond to receive from said Charles F. M. Noland all the assets, books, papers, etc., of every description in his hands belonging to said Real Estate Bank or to the late trustees in their fiduciary capacity, and proceed to the discharge of his duties as such Receiver under the several orders of the court made in respect to the same; and that the said Gordon N. Peay as such Reciever have and exercise all the powers, and carry into effect all the orders of this court heretofore directed to be carried into effect by the late Receiver. In testimony that the above order is a true and complete copy thereof taken from the record of proceedings of said Chancery Court, I, Gordon [L.s.] N. Peay, do hereby set my hand as clerk of said court, and affixed the seal of said court hereto, this 14th day of November, A.D. 1855.

4. November 20, 1855 The True Democrat Little Rock, AR

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EXECUTIVE OFFICE, Little Rock, Ark., 7th Nov., 1855. } The foregoing is a true copy of a communication on file in this office, made by Col. C. F. M. Norland, as Receiver in Chancery of the assets of the Real Estate Bank of the State of Arkansas, in response to a call, which, as Go vernor of the State, I made upon him as such Receiver for certain official information which I needed in the discharge of my public duties. ELIAS N. CONWAY, Governor of the State of Arkansas.

5. November 20, 1855 The True Democrat Little Rock, AR

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practicable." You will therfore perceive that the progress or delay of this suit, so important to the interests of the State, the tockholders, and the creditors of the Real Estate Bank, and to which the people of this State look with much solicitude, as the only remedy at present available to shield them from onerous taxation or the disgrace of repudiation, has been left by the Chancery Court dependent upon your action. This being the case, it follows as a consequence, that the speedy and faithful execution of the laws on the subject may be prevented as long as the Receiver fails to comply with the order of the court directing him to have the abstracts designated made out. The position in which you have been placed by the Chancellor, and the powers with which he has clothed you as receiver, are such, that the suit cannot progress, and the laws on the subject cannot be executed, without your proper action in the premises. As the law specially enjoins upon the Governor to have the suit prosecuted, and as he is required to take care that the laws be faithfully executed, I deem it my duty to advise you, as Receiver, that the laws upon the subject of the Real Estate Bank cannot be properly executed, that the suit will be delayed, and that perhaps thousands of dollars may be lost, by the statutes of limitation and otherwise, if those abstracts be not made out at an early day. When made out the defendants may then answer the bill of complaint-the suit will progress, and the accountants may then investigate the accounts and answers of the defendants, and ascertain and report the true condition of the Real Estate Bank. I hope therefore that you will inform me as early as you can, which of the abstracts you have had prepared, and how long it will require you to have them all made out in accordance with the order of the Chancery Court. Very respectfully, Your ob't. servant, ELIAS CONWAY. NOLAND

6. December 5, 1855 Washington Telegraph Washington, AR

Article from Washington Telegraph, December 5, 1855

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COL. NOLAND'S CARD Had Governor Conway suffered the corresponbetween us. to go to dence misrepresentation. of I his should have the charges remained public without silent; editorial organ me with my a new for the better understanding of my having but I the issue. will, neglected duty, and thereby raises both in and out of the State, give a of my Real Estate history friends, Bank. connection with A. D. the trust the of brief the On the 20th day of April, 1855, Chanof Pulaski, county, case US. the of cellor Arkansas, appointment Trustees in the of of the Receiver. Rea: of the Estate State and decreed the a was upon my part, was very unexI of pected. ed Bank, I was unsolicited appointed. accepted The it, and appointment resigned and the office besto Land by at a been Swamp elected annum. Commissioner, the Legislature.) (to which salary I had of $2,000 per On the 25th day of October. I received through the post-office, a letter from Gov. Conway, which letter has been published in the True Democrat, together with my reply, &c. This correspondence caused my removal-I have never complained of my removalseek no sympathy, nor need, The thorns I have reaped, were from the tree I planted." But the charge of neglect of duty I most emat making Bank so I have on was only ed phatically would the deny. brought with political If, clerks. like the capital, but his Trust. Excellency, in I could of doing, which have I while aimed I fillReceiver. a heavy expense, I do not believe I would have expedited the making out of the abstracts. Governor Conway has. politically, fed and fatteaed upon the poor old Real Estate Bank. It has been hisstanding theme by day-and at night, what was He to its him ghost has humbugged gives the him wooly feverish thousands horse himself dreams. of honest into to Barnum It the has people; been the late at every corner. and sees that finally pistols has and Trustees humbagged daggers, thirst for his blood. belief, Noth- He ing has been too ridiculous for his imagination. He claimed to have paid some half million of the State's indebtedness. and also to have put some sixty thousand hard dollars into the State Treasury! Neither of these statements had one particle of truth in it-indeed, a Philadelphia lawyer would have been pazzled to sav, which was the greatest lie of the two: yet, they were published in his organ, as facts, and read by hundreds, who will honestly believe them. Gov. Conway was authorized, by the last Legislature. to appoint two accountants for the Bank. He has not only appointed two, at a salary each of $2,000 per annum, but he has appointed à clerk to them. at the same salary, making the round SHA of $6,000 per annum, to come out of the pockets of the people. Yet (presume this is all right and proper-anything to open the secrets of his "SEALED BOOK."Any thing and every thing. that can make prejudice against the Trustees. and at the same time advance the political fortunes of Elias N. Conway, must be right. There will be a time. however, and I do not think it very distant. when it will be made to appear that, in a peculiary point of view at least, neither his Excellency Elias N. Conway, nor his kith and kin, and his particular fiends have been set back any by the Real Estate Bank: and that his zeal in prosecuting the suit against the Trus. tees, increased considerably after certain persons arranged their indebtedness with the bank. C. F. M. NOLAND. Little Rock, Nov. 24. 1855.

7. 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.

8. May 12, 1857 The True Democrat Little Rock, AR

Article from The True Democrat, May 12, 1857

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State being in debt to the bank in the sum of $10,125, as would appear from the receiver, the bank in reality, owes the State a balance of $71,206 93. It is only, however, wha: the bank owes for annual bonus and the interest amount withheld thereon, ties. The that increases the total by of the its United liabiliStates treasury department is included in the sum reported by the Receiver to be due for 1,169 bonds remaining unpaid and for interest on the same. But $59,142 31 of the total amount of $2,147,930 is due, not to the holders of the bonds, but to the State of Arkansas. It is worthy of remark that whether we estimate the lands held by and the as on an of bank, worth average, only pledged one half to their stock valuation, or whether we estimate them as worth, on an average, as much as that have been sold the acre the there lands will by per trustees, still be enough to discharge all the liabilities of the bank, and leave a sur. plus. It is true that time must elapse before debts due to the bank can be collected. and before the lands can be disposed of, and all will be on the bonds and this time various interest accruing expenses incurred in managing the affairs of the ins itution. But if the nation contimues as prosperous as it now is,if Arkansas to in wealth and as tinues rapidly advances she population conas has of late years, and more espe. ciaily if our railroad be completed, and a proper use be made of our swamp land fund, such an additional value may be given to the bank lands as will more than pay the interest that is yet to accrue on the bonds, and the expense that must necessarily be incurred in winding up the affairs of the bank. It is pleasing that we can arrive at this conclusion. It would be very hard to impose on the citizens and residents of Arkansas, the great body of whom earn their daily bread by their daily labor, the task of paying either principal or interest of bonds which were issued for the benefit of a comparatively few specu lators. We wish not to use the word in an of fensive sense. Many of those concerned in the Real Estate bank have always been among our most respectable citizens; but they themselves the whole affair was a must lation admit from that specu its very beginning. If it had been successful the profits would have been theirs. If it has been unsuccessful others ought not to bear the loss. So great were the evils which the Real ENtate bank and the State bank inflicted on the people, that both whigs and democrats united in making an amendment to the constitution by which it is declared that, No bank bankbe hereafter ing institution shall incorporated or or established in this State." All but one member of the Senate, and two members of the House voted in proposing this amendment at the session of 1841-5; and it was ratifie at the session of 1846-7, by the unanimous vote of both Houses. There was wisdom in this. Even supposing paper money banking to be theoretically correct, there is no proper place for such banks excepting where the people have money to deposit, or bowa file commercial notes of short dates to offer for discount. It would be very easy, indeed, to establish paper money manufactories in our State, as has recently been exemplified by the Cineinnati and Little Rock Slate Company. But Arkansas does not want paper money. What she wants is capital, and this can be created only by mudistry and economy. BENJAMIN C. TOTTEN Chairman on the part of the Senate D. HILL, Chairman on the port of the House.

9. May 12, 1857 The True Democrat Little Rock, AR

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S to be seen what spect there is of the liabilities of the bank I the State being ultimately discharged. reTaking together the reports made by the er and the accountants and making use of h additional facts as the accountants have covered since their report was printed, the owing estimate may be given of the assets liabilities of the Real Estate Bank: GROSS ASSETS. ount of bills and notes ue to thebank andelas d us good by the Re $403,277 26 rest thereon Oct. 1st, 56 140.413 85 $545,693 ount of notes and bills the to the bank. classed . doubtful by the Recei99.684 28 ount of notes and bills ue to the bank, worthiess by the Re 420,876 59 rest on the bad and untria debts lited by the Account its 178.800 07 694,306 $ 23 acres of hich when ock were valued 00 952,268 87 aeres other lands alsed the rates the stock lands 496.566 00 1,858,834 € bon five percent State of 6,000 00 rest thereon to Oct 1st, 125 00 10,125 cot county serpt 4400.00 imp land script 2,482.90 arrent money 484 12 499 63 7,866 65 king house and lots in ittle Rock and bankg house lot= in Washgton valued at cost, y 80,000 $2,616,825 0 maining stock lands, .157 aeres on which, bank ha=such claims ly are giventoithy lock bonds and stock ortgages $2,428,475.89 Total $5,075,801 l'he estimate differs slightly in the general ults, from that given by the accountants 10 in report. This is partly owing to our intro ing into it the banking house and lots in the of Little Rock, and the banking house lots it town of Washington; and partly owing to accountants having-ifter report was type-mai additional inquiries in regard he lands pledged to and owned by the,bask e result of these additional inquiries they given in their answer to interrogatory V, and we have been governed thereby king this estimate t is impossible to state the exact value et assets of the bank. In regard to the lands accountants could do no more than rate m at one half of their stock valuation, and 11 they added, that this m ght be estimating m too high. 'he following estimate has been made on ewhat different principles: NET ASSETS. and notes due to the bank and used as g by the Receiver with iterest thereon to Oct. 8 520.506 82 ouat which. according to estimate accountants may be collected for rincipal and interest of notes and classed by the Receiver as doubt and worth 54,306 ount of additional balances, disvered by the accountan entparties presuming the same to sustained by thecourt 60,000 23 acres of stock lands, valued at the to at which 6,962 such lands we been sold by the trustees 578,259 57 acres of other lands and 21 town its. valued at the rate at which 2.109 res of such lauds have been sold by in trustees 221,350 00 king house and lots at Little Rock d banking house lots in Washingn. worth say 20,000 Arkan-a five per cent. bonds and iterest thereon 10.125 2,200.00 cot county script $4.400 worth may, 1,737 my land script, $2.482. worth say, 499 cie on hand Oct. 1st, 1856 $1,463,984 haing stock lands, 127 187 acres vaand at the rate at which 6.942 acres such lands have nsold $1.202.984.64 Total $2,666,919.35 This estimate exceeds that of the account. , in the sum of nearly 175,000 dollars.e difference is owing, partly to our proceed on different principles in calculating the ue of the land, partly to our venturing to X a value to the banking house and lots at tie Rock and the banking house lots at ashington, and partly to our introducing the itional balances discovered by the account s, but which they did not see proper to in. in their account, as they have not yet been ctioned by the court. All such estimates are necessarily more or conjectural. The net value of the assets the bank, will depend on the manner ich they are managed The amount of its that will be colie ted will depend on the rgy of the collecting officers. The amount lands will bring. will depend in great de e on the judgment thatis shown 10 bringing m at a proper time into the market It is h satisfaction we state. that since the Rever made his report, he has collected about 0,000 of the debts due to the bank. l'here is no difficulty in ascertaining the lia ties of the bank. They were on the first Oct., 1856, as follows: $ 15,280 00 e for notes in cieulation 18,360 6 e to depositors and others e for 1,169 Real Estate Bank onds remaining unredeemed, 2,147,930 0 and for intererst on the same. e for money borrowed on 121,336.59 onds hy pothocated. e for interest on the same, to 112,843 October 1st, 1856 $2,415,759 00 To this sum should be added what was due the bank to the State for annual bonus at time the charter was forfeited. This was an adjustment of the account by the audiof State, found to be on the 29th dav of y, 1844, twelve thousand,eight hundred and enty-six dollars and thirty seven cents.e accountants, so far as appears, found no e of this in any of the books or papers of trustees, but they have since met with it, the year 1844