Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1845-03-29


her State debt. A large amount Of the stock issued
by this State is held by the General Government,
by whose officers funds held in trust by this Go
vernmen were invested in that stock; the whole
amount of which must OF course be made good by
the Treasury of the United States out of money
collected by taxation from the whole people of the
United States.
sRoM THE ARKANSAS STATE GAZETTE, MARCH 3.
We ask attention to the letter of I" x. Y" IL
was prepared at the request Of gentleman of a
|neighborng State, and who felt some interest in
knowing whether Arkansas would ever be able to
redeem the bonds issued in her name and by her
authority, and sold to obtain the specie capital for
her banks. The picture drawn of the financial
condition of our State, well as the prospect
ahead, is indeed gloomy one but yet, saving
some few unimporant particulars, it is in the main
correct
State Bonds of .4rkansas--V irtual Reputation,
occasioned by total inability 10 pay.
SIR Agreeaby to request give you herewith synopsis
of the acngs and dongs of the Legislature of Arkansas
far the may have relation the Arkansas State bonds
and the payment of the very large interest now due on them
and which daily cumulang, without regret say, the
remotest prospect Of any of being paid In the first
place, will remark that the General Assembly Of Arkansas
which composed Of precisely hundred MEMBERS
y-ve of whom Senators and seventy five Repesen-
aves commenced their session the 9TH November 1874
and closed the 10th of january ls45. With the Go
vernos message at the of the session.
transmitted to the General Assembly memorial from Lon
don, bearing date August the 29h ls43 signed by Fred
HUH & Co., Joseph Hume, and by several other firms for
themselves and Others wherein they state among other things
that they holders Of large of Arkansas bonds
full price for them, &c, and that interest has been
paid them since first of July ls4l and they earnestly
pray the General Assembly take prompt raise
the interest," independent Of the assets Of the bank they
deem debts coecabe from that pecarous and
tain. As this memorial transmitted with the Governors
message, it printed with other documents which
panied the message 1t then laid the table, and
further notice taken of it. The thing concerning the
bonds this there iriy thousand hun
ded dollars 49, 700) in specie in the vaults of the State
bank which portion, and the residue Of the original
capital of the bank that from the branches after they
had suspended specie payments member from Pulaski
county offered direct proposition to apply this specie far
would to the payment Of the interest due the State
bonds This proposition voted down. only voting for
it. Again, pay the interest State bonds another
member from the county offered direct proposition
appropriate the proceeds of the sales of the five hundred thou
sand granted specially the State by Congress
don that the State shall expend their proceeds making
terna improvements such roads, canals and clearing
rivers This latter proposition also voted down by large
majority, only twelve voting for it.
The of the State has always been deficient in paw
ing the ordinary expenditures of the State much SO
that the State compelled to borrow largely from the bank
and has discharged her obligations the bank by abacng
their aggregate amount from the capital of the bank and APP
plying it to the payment of the money borrowed and
therefore, by such robbng of Peter pay Paul. has dm
nishcd to that amount the Of the bank The auditors
estimate OF into the State treasury for the fiscal
years commencing with the lst Of October s42 and ending
the 3Oth September 1884, ST. 00O The actual receipts
for the said two fiscal years S49 % which shows
difference between the estimate and the receipts of the
argc of s27 $50 The expenditures the same
o years Sl644l rs exceeding the receipts by the
um of SO; and this last mentioned sup
Piled by absracng it, amount out Of the capital Of the State
bank IN an appropriation bill In the year 1914 the whole
IF the actual receipts the State treasury commencing with
he LIST of January, and ending with the 3st Of December
cere only S2l,676 ~ which collected in depre
ated paper, fifty per discount and more than two
thirds of paid by counties Of forty-ve Here
after the taxes to be collected in gold silver or State
scrip or treasury notes and estimate that is ad
Iorem tax the annual receipts will not exceed 000 and will
consequently be below the expenditures by about The
great deficiency in the To meet the expenses of
the State made known the General Assembly by The Gov
enor special message transmitted to them solely for that
purpose taxes however, being very small
and poor population, the House of Representatives refused to
raise them higher and in response the Governors special
message, resolved and determined that and
mpoc TO do AS therefore, they refuse raise the taxes
sufficiently high to pay their ordinary and current expenses
and thereby supply admitted deficiency in the revenue
brought to their notice by special message of the Governor
i needless for to say they will augment the taxes
with the view of paying portion Of the interest on the State
bonds In fact any candidate who would avow that he was
favor OF raising the taxes pay the interest on our State
,onds could not sure get five in any county in the
State The undputed and unpaid due on our bonds
m the Isl day Of January lS45, amounted to the large sum
IF fire hundred and frtyfou thousand five hunfrfd and
erenty dollars, and will be daily cumuang for the next
weny at the rate of $780, $50 per year. large por-
ION OF which payable in London and the balance in New
ork This calculation does include the interest on pe
hundred boads amounting TO $500 0OO which were issued
or one OF the banks and disposed Of by it, but which
been repudated by the State Our taxes being accord
TO value, raised mainly from the valuation Of slaves
nd were they raised higher of those owning slaves
youd remove to Texns adjoining great many have al
eady to Texas and should that country be annexed
he Union, will inevitably greatly abstract from popua-
ion No cmgrants scarcely stop within
'orcrs, but push TO Texas where there Government
ike and where they get the best kind Of lands
cry cheap From these circumstances population will,
therefore,, probably remain stationary, will increase very lit
lie, for the next twenty years to come.
The $685. 700 Of SPECIE being the residue of the original
Of the Bank, which the General Assembly refused
apply as far would go (as heretofore mentoned)
wards paving the interest the State bonds have been
racted by them from the bank, every single dollar and mp
,ropriated the pay Of the MEMBERS &c Neither the State
Tor the banks therefore, have single specie dollar
1T. IL az .tt