in by the State for $100, but was so situated that it could not be put to use.
As soon as the Bank of the State went into liquidation, it appears that it only fell into the hands of a new set of plunderers. No investigators ever were able to find out how the exchange of bank notes for State bonds was carried out. One receiver, as a committee said, "traded with himself" for bonds in exchange for notes, and no record of the transaction was kept. The receivers also retained bonds which they had bought, and took for themselves the interest, instead of returning the bonds to the treasury for cancellation, as the law required. Indeed they paid little heed to the prescriptions of the statute as to their duties. A committee of o said that "in many cases the great bulk of the loss is attributable to the criminal negligence and dishonesty of the officers of the bank." They allowed the loans to be lost under the statute of limitations. They neglected to attend to the security of the debts, and allowed their friends who were men of wealth to escape, by taking men of no responsibility in their stead, and neglected to enforce collections. "The history of the bank exhibits the most astounding instance of long-continued mismanagement and open abuse of trust that ever occurred in a country of laws." The causes were chiefly indifference as to qualifications in selecting officers, and lack of accountability. "In the possession of vast amounts, freed from all restraints, every obligation seems to have been released and every law regulating their duty set at defiance."
At the session of 1852-3, a proposition was made to enact a free banking law on the New York model. It was at last submitted to a popular vote, when the people refused to call a convention for the necessary amendment: to the Constitution.
The Legislature, January 12, 1853, adopted resolutions that the Attorney-General should file a bill in chancery for an accounting by the trustees of the Real Estate Bank, reciting in the preamble: "It is known that the trustees have, in many respects, violated the provisions of said deed, and there is great reason to believe that great losses have been sustained by their neglect and improper conduct." In the following year, however, the Governor declared that the mystery which surrounded the liquidation of the bank had not been broken. It refused to answer questions, although in answer to a demand from him, it made a return of the bonds which it had received in the course of its operations, and which it held. The Bank of the State had, up to that time, redeemed and canceled two hundred and thirty bonds. No interest had been paid on the outstanding bonds, but the United States had retained land payments which were due to Arkansas towards the interest on the $500,000 in the endowment of the Smithsonian. The amount of this, to 1853, was $46,834.
At the next session, the Legislature made another attempt to bring to light the true condition of affairs in the Real Estate Bank. The Governor was to institute suits and employ counsel. The liability of the State for
