410 CONGEESSIONAL PROCEEDINGS. 



enabled to meet their obligiitioii.s. The assets of the bank were equal 

 to the payment of all the debts. 



He would not, however, pledge his State to pay for the default of 

 the bank. When the bonds had become due, and the bank was found 

 unable to pay them, then the State might be called upon. 



Mr. Adams said the United States had nothing to do with the 

 bank. The State of Arkansas gave bonds for the money, and they 

 were in the Treasury now. The money was paid to an agent, and the 

 United States had nothing to do with the investment of the money. 



Mr. Yell said the State of Arkansas made a bank. They issued 

 bonds and invested them in the Real Estate Bank. 



Mr. Adams. Sir, I had heard before that the State of Arkansas 

 never received any benelSt from this money. But it was paid to their 

 authorized agents. It was received in the name of the State and not 

 of the bank. As to the argument that the money was invested in the 

 bank, and the bank was broken, he would leave that to such operation 

 as it might have upon this committee, and let it go for what it was 

 worth. He would say nothing to the disparagement of the State of 

 Arkansas or of the Government of the United States on account of 

 this contract. But if the $500,000 in British sovereigns was sent by 

 an agent to the sovereign State of Arkansas, it was a matter of no 

 concern to the Government of the United States whether the money 

 was filched on the way. 



Mr. Yell here asked if the gentleman intimated that the money was 

 misapplied by an}' agent or agents of the State of Arkansas. 



Mr. Adams had not said a word (he said) intimating an}^ such thing. 

 He had stated the fact. He repeated that the United States had noth- 

 ing to do with the concerns of the bank, which the gentleman had said 

 was broken, and upon which fact the gentleman had argued that the 

 State was not bound to pay the money. 



Mr. Adams was very sorry (he said) that this question had been 

 brought on. He had made no reflection on the State of Arkansas, or 

 on the bank, or on the agent. He still expressed the hope that the 

 State of Arkansas, after an appeal to her sense of justice and honor, 

 would pay the principal and interest of the debt as it became due. 



As to the State of Michigan, that portion of the substitute which 

 applied to it he should strike out. The State had made a provision for 

 the pa3aiient of the monej^ due by her. 



Mr. Andrew Johnson wished to ask one or two questions on this 

 subject of the honorable chairman who reported the bill. 



Was the money appropriated by the bill actually in the Treasury ? 



Mr. Owen said it would take a lawyer to answer such a question. 

 Half of the interest had been paid and half not. 



Mr. A. Johnson. Then I understand that more than $200,000 for 

 the buildings, etc., are to be paid, not out of the funds of the Institu- 



