The true Democrat., 1854-08-02
State Credit.

very much alterated its position in the last week. It has discarded Its own idea of "refuaMling' the State debt and now prates about ".fumding" it. When the people read its article about "refund'ng' they became very much elated with hope; they began to conceive ideas of be- ing released tmnaedaately from the heavy debt that now hangs over the State. And they had good cause to be so, for the proposition to "re- fund" came from the Auditor the financial ot- J'cer of the State, who was supposed to know the condition of our finances and our ability to "refund." But the Auditor has dissipated this cheering hope in his last paper and now speaks only of tu'adimg the State debt!
 The Gazette seems very anxious to "re-es- tablish'' the State credit by issuing new batch Of bonds for the principal and interest of the State debt, and passing declatory resolutions, promising, at some future day, to pay. This plan he got from Holford, the English capita list, who holds 500 illegal bonds against the State of Arkansas, which he bought at teao cents on tue do11ar of the North American Banking and Trust company. In order to procure an a.- knowledgment of the States indebtedness for these bonds, amounting now to nearly mizNom cf dollars, he made the proposition that if the State would issue new bonds to hin for the principal and the interest he would extend the time of payment 20 or 30 years By this in- famous proposition the Gazette has been sadly seduced from the best interest of the State.- Holtord's proposition was secuted by the mem- bers of the last General Assembly. They could not understand how to raise the State credit by issuing new State bonds, pledging the faith of the State for fraudulent and illegal debts. They could not understand how to Gre establish" the State credit by issuing another batch of bonds for the principal and interest of tue old ones, and thus entaing upon our posteri- ty our old debt at compound interest!
 Our last legislators were wiser and bettermen than those who own and control the Gazette Holford could not deceive them. They would not consent to pledge the faith of the State anew until her old and just debts were paid refunded" The issuing of "ne,g bonds'' and passing "declarat0'y resolutions promising to pay, Is poor way to re-establish diminished credit. Such bonds and declarations may de- ceive the "idiots' of the Gazette but they cannot impose upon the money dealers of the world, who look at our ability to pay more than at our promises.
 : Arkansas has as yet shown no disposition to repudiate her just debts, although she is at present utterly unable to discharge thera.
 Her bonds are not yet due, nor will they be due for years to come, but she has taken every step Ill her power te provide for their redemn. ton when due. She has set apart, by law, the assets of both banks to be so a],propriated = When these assets shall be exhausted it will be time enough for the State to commence nav- ing
 If 1t was left to our present Auditor to ar range and provide for our State debt, he would soon crush and destroy th. hopes we now have ot finally extinguishing it. By issuing new bonds every few years for the interest. and these new bonds be airing interest, the State would soon be burle q beneath load of debt that would render repudiation and djshonor in. evtable
 Our State is assuredly in bad way. With an Auditor absolutely ignorant of the first prin clp'es CT political economy, what chance has she to redeem and re-establish her credit.