ly aided the institution by contributions to
its museum, collections, and library, and by the gratuitous services of
public officers in its behalf. Such was the bill passed by Congress in
1846, and which has always been most faithfully executed. So that the
institution is now established upon a permanent basis, and is fulfilling
all the great and noble purposes proposed by the illustrious donor. Now,
in 1837, this fund was received by the Government of the United States,
and invested by the Secretary of the Treasury, Mr. Woodbury, in the six
per cent. bonds of the State of Arkansas at par, to the extent of over
half a million of dollars. During the same year Arkansas invested this
money in a bank, entitled 'The Real Estate Bank of Arkansas;' and of
which the State was the great stockholder. In 1839, this Bank, having
loaned out these funds to the citizens of Arkansas, became absolutely
and totally insolvent, and has never been able to pay one cent on the
dollar to any of its creditors. In 1839, the State of Arkansas failed
to pay the interest on its bonds, and from that day to this has never
paid one dollar either of interest or principal on any of these most
sacred obligations.

On the 4th of March, 1845, I became Secretary of the Treasury of the
United States, and having taken the deepest interest in this Smithsonian
fund, and in its faithful application to the noble purpose of the donor,
and inasmuch as one of my predecessors had invested these funds in these
bonds, and the Government had made itself directly responsible for the
faithful execution of this trust, I endeavored to reclaim, as far as
possible, this money from the State of Arkansas, and to induce Congress
to appropriate its own moneys to redeem the pledge of the Government,
and fulfil this trust. My first official action on this subject was as
follows: By act of Congress, five per cent. of the net proceeds of the
sales of the public lands of the United States in Arkansas was payable
to that State, for certain purposes designated in the act. There was,
also, an act of Congress in force, authorizing the Secretary of the
Treasury, where there were mutual debts and credits between the
Government and any other person, to offset any debt due by any creditor
of the United States, against any debt, so far as it would go, due by
the United States to such creditor. I interpreted this act as
authorizing me to withhold this five per cent. fund from the State of
Arkan