November 17, 1846

The General Assembly ratified a constitutional amendment outlawing banks and banking. The amendment stated that no banks could be established in the state of Arkansas. The law did not affect any actual banks, because the State Bank and Real Estate Bank had already closed, their failure having led to the amendment in the first place. The banks—which had made too many loans without adequate security and were involved in fraud and dishonesty—collapsed, causing the fledgling state of Arkansas to owe more than $3 million in debts.