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1837 State Bank and Texas
For the only time in its history, the election of a vice-president was thrown into the United
States Senate and Richard M. Johnson won. The Sevier-Johnson-Conway family welcomed this
victory of their relative.
The State Bank of Arkansas opened with operating capital of $1 million in bond sales.
Little Rock held the main office, with branches in Fayetteville, Batesville, Arkansas Post and later
Washington, Arkansas. Although the nationwide effect of the Panic of 1837 included bank
failures, a fall in the price of cotton and demonstrations by unemployed workers, Arkansas's
economy did not suffer. Little Rock presented the picture of healthy commercial activity. In June
alone, more than 100 steamboats arrived on the Arkansas River. The treasury of the
state even had a small surplus which was used to reduce taxes.
Still concerned about the Indian threat and the uncertainty of the Texas situation, the
United States Army began work on the Little Rock Arsenal in May. Initial enthusiasm in
Arkansas for Texas' independence, won in 1836, dampened when Texas petitioned for annexation
to the United States. Leaders in Arkansas feared population and resources would drain into
Texas if it was admitted to the Union. With nationwide public sentiment against Texas
annexation, Arkansas remained the edge of the United States for eight more years.
Late in the year and early in 1838, the first special session of the State General Assembly
was held. The most dramatic and shocking episode took place when Speaker of the House John
Wilson fatally stabbed Representative J.J. Anthony in the House Chamber for poking fun at the
Speaker. The House expelled Wilson, although he was later acquitted of murder. Again, the
intemperate actions of public officials injured the reputation of the state.
| 1838 Treasury Troubles and the Trail of Tears >
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