Arkansas true Democrat., 1859-09-14
Proposed Reduction of Taxes.

nounced to the tax payers by T. c. Hind man, etid omn, genus This is one ot MT. Hindman's favorite themes in his anoma- lous canvass, by which he hopes to disor- ganize the democratic party.
 Gov. Conway has good and sufflclent reasons for refusing to sign this bill. Ills refusal was no arbitrary exercise of power as charged by his enemies, but 1t was an act solely for the best interests of the otate' dictated by the purest motives and the soundest wisdom.
 To pay epery deh He .State o'oes hos 1ee@ he policy ot' Go0. Contcay's administrations To accomplish this he has exerted all of his abilities, and sleepless. untiring indus try. Debts contracted in good faith ought to be paid. None but knave would deny or repudiate an honest obligation; and none but fool would pretend oraSsert that such could be discharged without money or its equivalent.
 The facts in the ease are not generally understood-they are of record and we will recte them. Gov Conway, in his first in augral address, Nov 18th, 1852, marked out the policy he has since pursued. He said
 That the burdens of taxation may fall lightly on the people, we should observe and enforce rigid economy and strict ac- countability in all agents and departments of the government. That we may estab- fish the credit of the State on an elevated basis, we should avoid any new debts be- yond our ability to pay them punctually and honestly. Such debts as the State now owes should be paid as early as she can command the means, without oppress- ing the people.
 We should with great care and vigilance, guard the money and lands of the State from being squandered; and should secure their faithful application to the objects for which they were intended, in such manner as will best promote the interests of the whole State''
 This was his policy at the outset, snd he has steadily adhered to it. When he was first elected Governor, he determined, if possible, to liquidate every just claim against the State, and leave her. as she should be, perfectly free from debt
 In his message to the General Assembly, Nov. 27th, 1852, he said:
 :" Since the State has not the means to pay, at present, even the interest on the 1 H., q, ,. f that those issued 10 the Real Estate Bank | of the State of Arkansas, will not be due | until the 26th day of October, lS6l and | that the six per cent. bonds issued to ''The | Bank of the State of Arkansas,' will not | be due until the lSt day of January, 1868, | and that the five per cent. bonds issued to this bank. will not be due until the list day of | January, lSS1"
 The State owes debt to the " Bank of the State of Arkansas" She withdrew from the capital of that bank, the sum of three Hundred and serenty three Mousaad, tago Hundred and ninety-two dollars, and appropriated it to the payment of the orli- nary expenses of the State government.- This was done under the administration of Gov. A. Yell and Gov. Thos & Drew, by authority of acts approved 3d February, 1S43, and 10th Feb, 1S45-.See Gou}ds Digest page 1O47, umder heod of Surplus reUenue.
 This money part of the capital of the State Bank, was pledged to pay the debts of the Bank, but the State used it to dafrav her ordinary expenses, at time that de- preciated Bank paper had driven all the gold and silver out of the country and little could be found with which to pay taxes - These acts, appropriatng the bank capital, were passed to protect the people from an onerous taxation at time when it would have been cruel and oppressive. The State tax was, at that time, one,tourth of one per cent, and still the revenue arising therefrom was inadequate to carry on the government. When then, under these circumstances, the State reached out her strong arm and ap- tv lIer own use a portion of the ca apital of the State Bank, she created deJt ihat she is inhonor and morals, bound to poy.
 This sum was pledged to the redemption of the bonds issued by the Stale to the State Bank With it, the State Bank could purchase all these bonds; without it, repu- diation must follow, and Heaven avert such a calamity upon the State of Arllansas-- It is Gov. Conway's policy to pay back this sum to the bank, and see that it is ap- proprated by the bank to the redemption of the State bonds
 The debt of the State of Arkansas, on account of the two banks, is easily paid off, if proper management is used. If the State will pay to the " Bank of the State" the Mree Hundred and sepentythree Mousand, Mrce Hundred and ninety-t,co dollars, which it borrowed, with six per cent. interest, the bonds issued to the State Bank by the State can all be redeemed, and, as far as the " State Bank is concerned, every dollar of debt thus easily liquidated.
 As for the Real Estate Bank, the assets and the s3,OOO,OOO of lands mortgaged by the stockholders to the Sate, will be sufficient to redeem all the bonds issued by the State to the Real Estate Bank.
 To accomplish this desircable object, the State must have several hundred thousand dollars in its treasury. She must have enough to pay back what she borrowed from the State Bank, and, besides, enongh | to protect the mortgaged lands from sacr- flee when they are sold in 1S6l
 In 1856, Gov. Conway recommended 1 that the State tax should not be reduced | until sufficient sum be provided in the State treasury for these purposes. In the face of this recommendation, the General | Assembly of 1856, reduced the tax from oneJourh to one sirth of one per cent. In defarenca to their iudCmpnt hn anprOyat