State Bank (Little Rock, AR)

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For the Arkansas Intelligencer

Financial Arrangement. Messre. Editors: I have just seen a gentleman who has spent a few weeks about the circles of Little Rock, and from him I have learned a few financial facts, worthy of mem. ory. These are the more important to the country, as they give certain indications that weare to have an in creased circulation of the "better currency." The first of these financial operations relates to the manner of paying creditors their dues. The last Legisture, under some pretext or other, sent William Field to New York, to superintend some law suit.On the return of Mr. F. he presented his account for five hundred dollars for services. Although, it would seem that, by the late bill "putting the State Bankinto liquidation" that admirable plan, by which the circula. tion of Arkansas Bank paper, was to have been so soon abolished-the Commissioners and Receivers ought long since to have entered upon the discharge of their duties; thereby superceding the old Directors; yet the old board, ordered Mr. Field to be credited with fifteen hundred dollars, on his notes due the State Bank-thereby settling that, if they had five hundred dollars to pay Field, he might have purchased fifteen hundred collars. All concernea in this matter certainly acted from disinterested motives; for I understand that Charles J. Bertrand, a director, rendered an account for about seventy days services to the Bank, on some like mission--at five dollars per day. This bill was tested by the same crucible: and Mr. Bertrand received a credit for thrice $350. Col. Hempstead, the Bank attor ney, a very conscientious man, presented and had allowed, an account, over and above his standing salery of five hundred dollars, for services rendered in the Supreme Court-these of course uot being embraced in his office of Bank attorney, which bound him to every service-and this five hundred dollars was multiplied by three, and the Col. received credit for fifteen hundred dollars. I was at first incredulous to these reports; but I have the statements upon too high authority to doubt that they are substantially correct. If however any of the gentlemen concerned will deny the state. ments, I shall be happy to correct any error in rela. tion to a matter which 1 have second handed. I have been surprised at the silence of the Little Rock press on the subject; and can only account for it upon the principle that, the Gazette does not wish to anticipate its Bank history. Since the above paragraph was written I have seen a gentleman, who says that, the Editors of Little Rock, have a shade of interest in this matter, which renders silence the better policy. The last Legislature contract. cd for the printing of the laws, and journals; and of course made the contract for par funds. But after the division of the specie on hand, among the members, there was little left to pay for the printing of their proceedings; so the Legislature left the executive officera o manage his matter as they best could. The Governor's cabinet are more ingenius than Capt. Ty ler's. They can get along without his ExcellencyThey soon rectified the Arkansas money--somewbat after the manner of the bank operation, with this dif ference; that the Auditor uses a different multiplier Mr. Colby for instance certifies an account of thousand dollars, according to contract-the Auditor multiplies by 21-thus for a thousand dollars, he receives a warrant of $2,500. Now Judge Brown, the other day, a man whose services at a single riding, are more laber. ious, expensive than a pleasure trip to New York, was compelled to receive a quarter's salary, in Arkansas Real Estate Bank bills at par. Yet there is as much law for paying him two and a half for one, as there is for paying a printer or any other creditor of the Government. I am curious to know when the Bank circulation is to be consumed at this rate. I have looked over the Bank laws in vain, to learn by what authority of law, these proceedings are had I am told that all the money in the Treasury is ex. hausted. but that the balance of the surplus revenue is placed at the disposal of the Treasurer. And pray what authority does this givo to the keeper of the cash in Bank, to pay out worthless rags at any price? If the money is received as a deposite-ar not depositors to be paid in the kind of funds deposited? If viewed as a part of the Bank capital, is there any law for with drawing that capital in irredeemable funds? Col. So vier'anotion of financiering was neverso abused as this. And by what authority are Arkeneas bills paid out by the Bank? Ought not the cancel hammer to have UNO. passed over them long since?

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November 13th

Senate met pursuat to adjournment. Mr. Gaines introduced a bill to be entitled An act tosamend the laws for taking up estrays." Read a first time, and ordered to a second reading on to-morrow. Mr. Gaines introduced a resolution to appoint a joint select committee of three in the Senate and five in the House of Representatives, to examine into the acts of the late Bank Visiter, and the acts of Financial and Executive Receivers of the State Bank. Also to take into consideration the propriety of abolishing the office of Bank Visiter and Executive Receiver of the State Bank and branches. Which was read, and laid on the table for one day. Mr. McCamy introduced a resolution instructing the judiciary committee "to enquire into the propriety of adopting some form for justices of the peace for taking bonds or recognizances for the appearance of offenders against the State. And to enquire into the propriety of the informer or prosecutor before the justice of the peace, where the grand jury does not find u true bill, to be bound for all cost incurred in said case before the justice of the peace." Which was read and referred to the judiciary committee. Mr. Maxwell introduced a resolution instructing the committee on ways and means to enquire into the propriety of so changing the revenue law of the State as to require sheriffs aud other collecting officers of the State to pay into the State and county treasury the same kind of funds they shall collect. Which was read, and adopted. On motion of Mr. Ficklin, the Senate adjourned.

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others in favor of the Bank of the State. 113th. Resolution in relation to Salt Springs and lands in Sevier county. 114th. Resolution in relation to free negroes and mulattoes. 115th. Resolution in relation to publishing the Resolution in relation to the amendments to the constitution. 116. Resolution in relation to the passage of a law concerning French and Spanish laud claims. 117th. Resolution in relation to the proposition of John Hutt and wife to convey a certain house and lot to the State. 118th. Resolution concerning the appointment of an Executive Receiver of the State Bank at Little Rock. 119th. An act to regulate the action of Forcible Entry and detainer. 120th. An act making appropriation for the years 1845, 1846, and part of the year 1841 and for balances due from the State, and for other purposes. The bill having been returned by the Governor with his objections thereto and after reconsideration having passed both Houses by the constitutional majority, it has become a law this 10th day of January A. D. 1845. 121st. An act entitled an act supplementary to an act making appropriations for the years 1845, 1846, and part of 1844, and for balances due from the State and for other purposes.

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109th. An act to attach Dallas county to the second Judicial circuit and for other purposes. 110th. An act for the benefit and relief of Thomas S. Woodward and Thomas Woodward 111th. Resolution in relation to amendments to the constitution of the State. 12th. Resolution in relation to the collection of a note drawn by Thomas Thorn and others in favor of the Bank of the State. 113th. Resolution in relation to Salt springs in Sevier county. 114th. Resolution in relation to free negroes and mullattoes. 115th. Resolutions in relation to publishing the Resolution in relation to the amendments to the Constitution. 116th. Resolutions in relation to the passage of a law concerning French and Spanish land claims. 117th. Resolution in relation to the proposition of John Hutt and wife to convey a certain house and lot to the State. 118th. Resolution concerning the ap. pointment of an Executive Receiver of the State Bank at T ittle Rook 119th. An act to regulate, the action of Forcible Entry and detainer. 120th. An act making appropriation for the years 1845, 1846. and part of the year 1841 and for balances que from the State, and for other purposes. The bill having been returned by the Governor with his objections thereto and after reconsideration having passed both Houses by the constitutional majority, it has become a law this 10th day of January A. D. 1845. 12'st. An act entitled an act supplementary to an act making appropriations for the years 1845, 1846, and part of IS44. and for balances due from the State and for other purposes.

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UNDERHILL vs

STATE BANK. Error to Pulaski. The act of 31st Jan. 1843, placing it in liquidation, did not destroy the corporate existenee of the State Bank. It only, as designed, restricted the corporate powers of the Bank, and vested those left to it in Receivers, instead of boards of directors as originally, which the Legislature possessed the power to do. The Bank may yetsue, and be sued, plead and be pleaded, as a corporation.-Affirmed.

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ELECTIONS BY THE GENERAL ASSEMBLY

On Friday, the 18th inst, the Two Houses met in convention, and proceeded to the election of a Digester of the Laws, Bank Attorneys, and Financial Receivers for the different branches of she State Bank. The election resulted as follows: E. H. ENGLISH was elected Digester without opposition. For the Bank at this place A. E. THORNTON was elected Receiver, and L R. LINCOLN Attorney. without opposition. For the Branch at the Post, JAMES SMITH and M. W. DORRIS were re-elected without opposition. For the Branch at Batesville BIVENS was elected Attorney without opposition, and COOK Receiver over Mr. Gainer of the Senate. For the Branch at Fayetteville E. PULLIAM was elected Receiver with out opposition, and JONAS M. TEBBETTS Attorney, over his competitors Neal and Murphy, On Monday last, both Houses met in convention, for the purpose of electing a collector and Land Attorney for the State. E. CUMMINS, Esq., waselected without opposition. The following is the very flattering report from the committee on Internal Improvements, to whom was referred the resolution requiring an investigation of the Office of the State Land Agent, ano the manner in which he had discharged his duties. MR. PRESIDENT: The Committee on luternal Improvements, to whom was referred the report of the Land Agent of this State. together with a resolution of instructions to said Committee to examine into the condition of said office, and the manner in which the duties of said agent have been discharged, REPORT, That the committee have discharged the duties assigned them, and find, from a careful examination of the books, &c., of the office, that the report of that officer, accompanying the Governor's Message, is full, accurate, and correct, in every particular: that he has collected of the debts reported due, since the date of said report, the sum of $199 55, which is now on hand. Your Committee further report, in justice to that officer, that he has performed the duties of that office in a manner faithful, prompt, and skilful, and, in the arrangement of the detail of its duties, he has adopted and preserved a system, clear, regular, and well callated to afford, upon the shortest notice, the most satisfactory information of the state and business of the office. They find that the duties and labors of the office have accumulated so much as to require a great amount of labor, skill, and close attention, and has become a very important addition to the public duties, requiring the continuance of that office as a separate establishment and branch of the Treasury. In conclusion, your Committee cannot too highly commend the necessity and importance of the office, and the very able and active manner in which its duties have been discharged. All of which, is respectfully submitted. UNDERHILL, Chairman,

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Receiver

Receiver's Office, State Bank, Little Rock, October 1, 1850.

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Bank, and cancelled and filled them with the as required by the sec. ap: act exhibits the amount of received at the Principal 6th of 1849, to the 1st Oct, what it was propriation day and State Table disbursed purpose Treasurer, April, G, of 1844. expended. Bank, without specie 2d from 1850, the and of last Le gistature adjourned to pay the by the Governor, under a The appropriation Bank resolution Agent Receivers making of ap- the for Assembly, to n ceive from pointed General State the Bank of different branches of the ! of such branches, and return Bank. His expenses assets any the them engaged amount- to the the in of his duties as Agent, considerable sum; all of out of his private funds, or to him. Under these pay ed the Principal to performance a abandon while which he the had Bank, trust to I him cut of the specie on hand in paid confided of $160. circumstances, the upon his application, the sum The $50 paid to Mr. Carroli, attorney for this was under the following circumstances.on the 9th Jan., 1844, Mary B. Miles, et on 3 ment bank, The bank, against al. obtained note Chicot judg- for $2,700. The officers run an execution to returnable to the April term, 1847; and same time agreed with the would the arrearages of they at county, the pay interest, parties, cost that and if discount, they could put in new note for the amount ($2,700), due in 12 months. This was acceded to and on of Mrs. Miles; and on the the of proposition the part principal Thomas complied 15th April, H. with Rives, 1847, she paid or caused to be paid to of Chicot county. the sum of $1,345, and executed note for $2,700, due 1st The judgment remained the in then Arkansas new sheriff funds, unsatisfied and when April, handed Mr. 1848. Car- him roll and 1 came into office, and to recover the amount, we caused an execution to issue, when the above facts were shown by the parties; any w recover from Mr. Rives the $1,345 in cash, and had the new note executed by Miles, Mr. Curroll to go Chicot county, and the $56 received by him was to bear bis expenses. Mr. Carroll covered the note; but Mr. Rives failed to pay the money collected. to recover which suit has been brought to the next December term. The amount expended in repairn-2 the bank house was absolutely necessary to presewe it from ruin, as the roof was in a very leaky CO~Ition, and the fencing was rotten and down. The horse now some repairs to be to 10 to the future policy in In requires relation made of the preserve State, relation to the State Bank, I would respectfully suggest the propriety of adopting some mode whereby the expenses of collecting the debts due the bank may be reduced. The available assets yet outstanding are now reduced The debts to less already than $300,000. lost, and those known to be entirely insolvent, should be stricken out of the assets, as they only encumber the books, and give the officers is great deal of unnecessary work and trouble. The debts reported as doubtful, or at least a large portion of them, might be placed in the hands of attorneys, residing in counties where the parties them power to debts, secure a portion, if all cannot so do, as and to give compromise be the with collected, proThe office of Financial Receiver might, priety, be abolished, and the assets of the bank and branches placed in the hands of the State Treasurer. Since the adjournment of the last Legislature, judgments have been obtained against the bank, and her paper, in favor of James M. Curran John on G. Cocks. For the amounts, I respectfully reter you to the report of D. W. Carroll, Esq, attorney for the principal bank, accompanying this report, marked il. Before closing this report, I must, in justice to myself, state, that errors will be found in the tables the exhibiting the condition of the branches, as at none of them were the act of liquidation went into since books regularly effect; condition kept con- up sequently it is impossible to ascertain the note. I have endeavore.1 to show the of note, and have done so I have been able to of condition Dest every information every from procure, be the atWhen errors are found, I hope they will tributed to the want of proper entries on the books, from which I could have obtained the necessary information, and not from any desire on my part to misrepresent any. have the honor to be, respectfully, your ob't serv't, JOHN M. ROSS, Financial Receiver. October 1, 1850. Receiver's Office, State Bank, Little Rock,

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Nov

8th, 1856. I The Financial Receiver of the State Bank being impressed with an idea that some expressions in my report to Governor Conway (on the state of the books and accounts of that institution) may be construed to his disadvantage, I take pleasure in endeavoring to remove such impression, and state that having been recently engaged by Governor Conway, to ascertain "whether a report of the condition of the assets of the State Bank could be made during the present session of the General Assembly," that letter was written for the sole object of satisfying the Governor of the utter impossibility of accomplishing his desire, and without intention of casting any reflection whatever on the present incumbent, in whose justification I now add, what I have learned from himself, that perceiving a vacuum or interval of upwards of twelve months in the record of Mr. Ross' transactions upon the "blotter" or 'day book" of the bank, and that entries previously made therein had not been posted to the individual accounts on the bank ledger, he deemed it advisable to open a separate book for the exclusive record of his own official proceedings, and delayed posting them into the bank ledger, until the previous transactions of his predecessor, Mr. Ross, should be first transferred therein. It is also due the Receiver, to add, that he has bestowed much time and labor on his "bond account," not only in showing value of the bond when received, and when disposed of, but also, in making such record and memoranda as will greatly aid the party having settlement of the "bond account," in tracing and following out the complicated operation of severing coupons (indiscriminately) from bonds of the Real Estate Bank, and using them in settlement of account with individuals, and in exchange for bonds issued on account of the State Bank. J. H. CREASE. Little Rock, 8th Nov., 1856.

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be collected," said Mr. Ross, under date of October 1st, 1852, " will not exceed $200,000." Mr. Crutchfield, who succeeded Mr. Ross, as financial receiver, said in his report of Dec. 16th, 1854, the amount of debts collected by my predecessor, since his last report to the General Assembly of the 1st of October, 1852, and up to the time of his death, amounted to $82,050 12. This sum, if deducted from the amount of debts estimated by him as solvent, would leave of solvent debts uncollected at the time of his death, the aggregate sum of $117,949 88. But it is highly probable that a considerable portion of the above sum so collected by him was collected from the amount classed by him as "doubtful," one third of which he estimated would be collected. If so the amount of solvent debts remaining uncollected at the time of his death, would be increased in a proportionate ratio. I know there was a small portion of the amount SO collected by him from debts he deemed insolvent." In the short time Mr. Crutchfield was in of$25,326 and Mr. successor, has, according to his his fice he collected 79, report Fagan, of Oct. 1st, 1856. collected $50,643 64. These sums added to the amount collected by Mr. Ross between October the 1st, 1852, and the day of hisdeath in August, 1854, will make a total of $158,020 55. Deduco this from the amount Mr. loss supposed could be recovered and $42,979 45 remain yet to be collected. What amount will ultimately be realized from the debts, due to the bank is necessarily matter of conjecture. Mr. Cratchfield states that part of the money collected from October 1852, to August 1854, was from debtors whom Mr. Ross classed with the insolvent. As times have improved since Mr. Ross made his estimate, we may venture to hope that a larger amount than he supposed may be collected from the debtors whom be classed as doubtful and insolvent. On the other hand, unless prompt and proper measures be taken, the amount may be less. Mr. John H. Crease, who was the cashier of the principal bank from the time it commenced operation till the act of liquidation was passed, and who was alter that financial receiver for more than two years, was sometime since requested by the Governor to make an examination of the books and accounts. Underdate of October 1st, 1856, he made report that he found every thing in confusion. His subsequent investigations have shown that the confusion is even greater than he then supposed; and his statement of the condition of the books and accounts is confirmed by Mr. Pagan, the financial receiver and by Mr. Woodward, ais intelligent assistant. There is no difficulty in ascertaining the liabilities of the bank. They amounted on the 1st of October last, according to the financial receiver's report, to the sum of $1,420,488 38. that beingthe total then due on account of State bonds issued for the benefit of borrowers from the State bank and interest on the SAMPL Against this there is an apparent off-et of $216. 845, that being the amount of Real Estate Bank bonds, coupons, and notes, now the properts of the State Bank. But this am out be col. lected from the Real Estate Bail before it can be made available in redeeming the bonds issued for the benefit of the State Bank. Independently of these Real Estate Bank obligations, all the means the late Bank possesser the 1 -t of October, 1856, consisted of $313 35 in specie, and of notes and bills discontined of which Mr. Fagan supposed only $35,000 uld be collected. All its real estate is gone, the same having been, according to report ade in 1849, sold and sacrificed for re-licentieth of its value." to be hoped that this dear-bouzh expe rience will be lost on the State. It be hoped that due means will be taken to prevent, the land owned by and pledged to the Rea tate Bank being st in like manner. Such is the result of all experiment in banking by which every body was gain and no body was todoose. Such result of a plan by which the people were to berrelieved from the burlen of taxation. At thereintof twenty years we find it leavesthe State with a debt et nearly a million and a half, and that annu ally increasing by increments of interest, with nothing to pay this debt but certain obligations of the R at Estate Bank, which may or may not ultimately prove available, and with a mass of notes and bills discounted, amoun ing, in deed, in the aggregate to upwards of one mil. lion, but of which it is supposed as the accounts stand at present, only it small portion will be collected. BENJAMIN C. TOTTEN, Chairman of the Com. on the part of the Senate