Timeline
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.
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