Arkansas true Democrat., 1857-11-10
Ire State Debt of Afkap2As.

anu lo HOW NTOtu CeCduS6 He ately realize par value from them;
 "The Little Rock (Ark) Democrat. in refer ence to a provision in the constitution ot that State hv which the establishment of banks is prohibited. remarks that the citizens are only troubled by the worthless rag currency from Tennessee, the Carolinas. Georgia and Ken lucky May We take the liberty to suggest that if the people of Arkansas would but un- dertake the discharge of the public debt oi that State upon which no interest has been paid Tor some twenty years past, the holders of Arkan- sas stocks would probably be well content to take even bank rags in paymentE The south ern banks may be very ragged, but the repu- dating State of Arkansas is specimen of to- tai financial nudity"
 Some remarks are necessary by way of ex- planatiou.
 In the year 1886, when bank mania infect ed the whole land, certain persons projected a couple of banks with some six or seven branches in Arkansas, and prevailed on the State Legs- lature to authorize the issue of bonds to put these banks in operation. The utmost pains were taken to pursuade the people that they would never be called on to pay either the prin- cipal or the interest of these bonds
 These banks produced such effects as paper money banks always produce, but the effects of which are felt most sensibly in newly settled regions. By raising the price of every thing, tbey stimulated extravaganza in living, extra yagance in business, and extravaganza in specu- lation. They involved every body in debt, and left almost every body without the means of drove specie out of circulation, and then, when their paper was discredted, the people were left without a sufficient medium for either or dinary purposes or the payment of taxes.
 Few States suffered so severely by the bank revlhsion of 1S37-'43, as did the State of Ar kansas But, though the debt had not been in cured for any public work, or for the benefit of the people at large, but simply for the bene- fit of comparatively few speculators, the peo- pie of Arkansas did not repudiate the debt
 For them to raise by taxation the amount that was necessary to pay the interest on the bonds that had been issued for the benefit of the banks, was impossible. 50 calamtous were the times, that the revenue of the State would not pay the ordinary expenses of the State govern ment.
 The people of Arkansas did, however, what they could. They passed all act to put the Bank of the State in liquidation, with view of securing it's assets for the benefit of the holders of the bonds that had been issued for the bene- fit of that bank. The directors of the Real Estate Bank, by making an assignment, placed its assets beyond the immediate control of the State. The Legislature, however, dissatisfied with the manner in which the trust was man. aged, took, some years back, effective measures to secure for the benefit of the holders of the bonds, the remaining assets of that bank
 By these and other measures, bonds and cou- pons of the State Bank to the amount of about S1, l03,0 have been redeemed; and also bends and coupons of the Real Estate Bank to the amount of about S1,033, ,OOo; and the work of redemption is still going on.
 The people have always maintained that as the debt was in its origin bank debt the as sets of the banks should, as far as they will go be applied to its eXtinguishment How much these assets will amount to, cannot be known till the banks are wound up. Butit is believed of the Bank of the State, will not be more than it will be easy to make provision for.
 As for the bonds issued for the benefit of the Real Estate Bank, the assets of that bank ought to redeem them all, both principal and interest. For the security of these bonds the stockhol- ders of tht bank, pledged 188, ,ll0 acres of land, which were valued under oath, at 5, ,38O,- 762. These stock mortgages, as they are cal led, cannot be made available till 1861, when the bonds fall due, but tbey remain a pledge for the ultimate redemption of the bonds. if the other assets of the banks should prove insuffi- cient. Among these other assets, are upwards of twenty-two thousand acres of land to which the bank has full title and notes for some hun fred thousand dollars due by solvent parties.
 During the last twelve months the receiver appointed by the court of chaucery has realized several hundred thousand dollars from the assets of the Real Estate Bank, all of which has been applied to the liquidation of the bonds and coupons issued for the benefit of that bank He hoped to realize as much more during the next twelve months; but We fear his hopes have been damped by the confusion into which every thing has been thrown by the action of the banks in the north and east.
 Arkansas has already discharged about one half of the obligations incurred on account of the Bank of the State, and about cne-third of those incurred on account of the Real Estate Bank. She will proceed as she has begun, rigidy applying the assets of the bank as fast as collected to the redemption of the bonds in- cured for the benefit of the banks
 We presume the editor of the New York Tribune was not aware of the true state of af- fairs, when he used the opprobrous language which we have quoted above. But even SUD- posing things to have been as bad as he repre- sented them to be, so unblushing an advocate as he is of the false system of money and the false system of credit under which the country IS groaning, ought to be the last to reproach others for what is but the natural consequence ot that system. Before paper money banking was introduced into Arkansas, the debt of the State did not amount to nine thousand dollars But for this hell begotteu system, a community of F 900 white men, (of se many only did oul population then consist,) would never have beer saddled with bonded debt of nearly three millions, and bearing an annual interest of up wards of $167, 900. Considering all that the State and the people have been called to pas: through. it is marvellous that they have beer able to discharge so much of this onerous obi gation.
 Suspended Railroads.
 Within the last thirty days the following railroad companies are reported as having either