The true Democrat., 1854-12-13
The Banks and the State Bonds.

0e44AA0 One of the writers for the Gazette: in an edi- torial of its last issue, makes a fearful appeal in behalf of Mr Woodruff, but offers no de- fense for him in the matter of the hypotheca- tion of the 500 State Bonds. He eulogizes Woodruff, and as is customary with them, when one of their confederates is exposed, makes no defense, but refers the public, in the most affect ing strain, to his past life, his private virtues and his courteous department. Upon these, and the assertion that he is a private citizen, Woodrutf's defense against the grave charge of havlng been the instrument in hypothecating oOO State bonds for the sum of 122.OOO dollars, IS rested, and are bitterly arraigned for hav- Ing wantonly dragged him before the public
 We have nothing to do with Mr. Woodruff s private life or his social qualities. We spoke only of his public acts and we have the right to portray them in their true colors, though he may longsince have retired from public employment.
 He has left his mark upon the credit and honor of the State and we violate no proprety in pointing it out. Conway and his friends are held up as the authors of the degradataop of Arkansas, she being a0lthout prosperity at Aome and Uathoa1 character or credit abroad," but we intend to tell the people who are the real au- thors of this state of affairs, even though it draws an old man from the peaceful obscurity of private life. The guilty shall not escape and the innocent suffer- while we own news paper.
 But Woodruff is not private citizen He holds an otice-he is the Pension Agent of the governmentand Danley knows this, for he draws his pension quarterly from him. His srepresent- Ing Woodruff as private citizen is, therefore, an attempt at wilful deception.
 But notwithstanding the editor and his con- iederates offer no explanation or defense of Woodruff, in this matter of the hypothecation of 800 State bonds, invozving Hundreds of Moa.- sands cf dolzars, they still pursue Conway, upon the most insignificant matters, with fendish delight that exceeds all bounds of decencv.- The tender sympathy that they would excite for Woodruff, is forgotten when they approach the Governor. Personal allusons and taunts of the most offensive character-low, dirty epithets that would befoul any lips that uttered them, fall, like leaves in autumn, from their pens. The respect that is due to the Execu- tive-due to the people over whom he presides. IS forgotten or contemptuously dsregarded. So bitter and vindictive are their feelings against Gov. Conway, that they even lose their own self-respect, and degrade their paper with the lowest species of personal abuse and misrepre- sentation.
 Below we give few questions that have been propounded by the Gazette, for several weeks past and made the grounds of assailing the Goverl or with the utmost bitterness. These questions, exhibiting so much stupidity and im- potent rage, are all answered in the Governors message-a document that Danley da1-ed not to lay before his readers. Speaking of the ex- change, made by the Financial Receiver. of cou- pons taken from State bonds issued to the R. E. Bank, for State bonds, he asks:
 With whom did his Excelency effect this ex change.
 Was it with the State Bank, where they had long since been paid in. and cancelled, by law as soo a they come in possession of the State:
 Had not large portion of the coupons, so paid in accumulated on the bonds after they had been paid to the State and were legally cancelled2
 as the act of putting these cancelled coupons again into circulation by paving them to the Real Estate Bank. high handel act con lenped alike bv cood laws and good mor;lioi
 Did the party paying out thee cancelled coupqns. from cancelled bonds practice deceit well as perIe trate fraud Lnd deceive tine Cashier and Secretary of the Real E-y.te Bank by falsely repy-..g iar hnsslf aS fhl I,tt.i pf Inc. when n fact, they we're and are owned by .h State7
 In nanswerto these questions we have to state that when State bonds Issued to the State Bank. , are paid into the State Bank they are turned over to the State Treasurer and cancelled: but the editor of the Gazette knows verv well that there never has been single State bond, issued to the Real Estate Rank, delivered to the Trea- surer to be cancelled. This the editor knew when he was Auditor, unless the charge often made against him IS true, that he was totally ignorant of the affairs of the Auditors office. Why then these questions? The Real Estate Bank bonds and coupons, in the State Bank hove not been conceY2aa-and 1t was coupons from the Real Estate Bank bonds that the Receiver exchanged for State bonds, and not coupons from State Bank bonds that had been cancelled. There is no law authorizing the Receiver of the State Bank, to deliver up and have cancelled the State bonds issued to the R. E. Bank. They are assets and liable for the debts of the State Bank and as assets, are in the hands of the Re- ceiver to be used by him, under the discretiona- ry power given by law, to arrange the indebted dess of the State Bank He used them to the advantage of the Bank, and in doing so did a. strictly legal act. He got bonds that are draw ing interest, for coupons that were drawing none. The State Bank bonds, that he thus ex- changed for, he filed with the Treasurer and had cancelled; and the Real Estate Bank bonds he yet has in his possession as assets of the State Bank.
 The matter is plain and clear-the transaction was not only strictly legal, but an advantageous one to the State. Wequote the following from the Governors message:
 < The policy of exchanging coupons due upon Real