The Van Buren press., 1859-11-04
The State Credit.

an ASS" A HINpNAN Man
The State Credit
Or we should rather say the rant Of cred
it which we enjoy (?) abroad. Arkansas
is distinguished in financial circles as a re-
pud'ating State. and her securities or bonds
are therefore beyond the /" pale of redemp-
ton " in the consideration of financiers. A
; Wall-street broker would no more touch an
Arkansas bond than he would consuming
fire j.; and it is astonishing that with all our
resources this black spot upon the otherwise
air escutcheon Of our State should have
been so long permitted to remain. Since
the days OF the celebrated, but victimised
Sidney Smith, repudiating government il
an object OF the most hearty CONTEMPT. and
Justly so, too. Since Pennsylvania we be-
lieve there are but three other States that
have openly repudiated. They are Missis.
sippi. Arkansas and California ; and with
iu the last two years there has been strong
sentiment of repudiation prevailing in Wis
consin, but her Supreme Court has arrest
ed the murky tide and she is saved. Seve-
raj municipalities and counties in different
parts of the country, have set up the dis
graceful standard of reputation, but so far
unsuccessfully. as the Courts invariably
sustain their perfect responsibility. We
observe that the city of Pittsburgh, one of
the most reliable in the Union in other as
poets. has recently suffered the gas-w orks to
be sold for the payment of certain debts
which the people took it into their heads
they would not pay, We know of but one
southern city, Covington. KY. which has
refused to pay, and but one in New Eng
land, all others being confined to the north
|ern, middle and western states. We do not
know that Arkansas ever has repudiated
farther than to claim that she was victimis-
ed and unjnstly held responsible for debts
contracted by worthless institutions, and to
represent that she was unable to redeem the
bonds lent to rotten banks, or even to paw
the interest accruing thereon. But to capi-
talists this is equivalent to or worse than
downright repudiation.
We repeat that it is astonishing that
with all our resources this foul blot is not
erased from our escutcheon. And whv
is it not ? The State taxes are remarkably
light, yielding with our other resources a
sum far exceeding the necessary expenses of
the government. There is every evidence
of internal wealth and prosperity, and eve-
ry hope Of future greatness and why it is
| eh"e sAC AheSiCSt upou Tie DOuuS Oh the
State have been unpaid is more than we can
divine. 1t might easily have been done, and
it should have been done by every con.
sideration of self-respect and honor. 1t
cannot be that our rulers have feared or
failed from selfish motives of policy to i'm
pose the light additional tax necessary to
effect the object. but it must be because
they do not fully comprehend the import.
ance of maintaining the credit of the State
unsullied abroad. They may not have real
lied the great practical necessity of such
step in view Of future contingencies. 1t is
a blind and ruinous policy on the part of
governments, as well as of individuals, to
refuse or neglect to pay all obligations
promptly upon maturity. Credit is fun
damental necessity of governments as well
as OF commercial society, and it should
therefore be jealously guarded and MAIN
tanned in panoply of unsullied integrity
1t is not to be trihed with nor abusei.
Neither should it be used for any but legit-
mate purposes for the preservation Of
governments rs well as for the DEVELOPMENT
Of their power and we may look to our
sister states for the results of the legitimate
uses of credit.
I 1t is not at all probable that the bonds
of this State could be sold now for more
than one half their real positive value yet
Missouri, with debt of thirty millions, or
ten times that of Arkansas, are in demnd
at ninety cents on the dollar. The reason
Of this is because the interest is promptly
paid, and there are no rlskt Of repudiation
Although Minnesota is but an infant, she
possesses the inherent strength Of giant
ami she knows how to make it manifest,
and turn it to account. Her bonds are now
eagerly sought at q premium of six per
cent or more. Those of our eastern neigh
Dor, Tennessee. command par and premi-
um prices. Ohio has long stood among the
first in credit, and even now she has but
eight dollars to our One, while her railroads
and canals are measured by the thousand
miles, and her agricultural. manufacturing
and other industrial interests are reckcned
by, five, ten and twenty millions of dollars.
They are all the legitimate results of prop
er use Of credit. Let Dis learn wise les
son from these reflections and to begin in
the right way. let ths interesf ON the STATE
: det be paid up With as li1ie delay az possi1s.
1t can be done, and ought to be done, and
before the State can make any material
progress in the development Of her nstural
resources it ssxsf be done. We ara :" in
, Lfor additionsf taxation, or the adoption Of
Iany other means whereby this object may
b aocomplshsa, let he Aosor 9f aks Sss6s
bepe6sssed, II.