The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1859-05-26
Arkansas and Der Debt.


Arkansas and Der Debt.
Arkansas is everywher, classed as a repu-
dating State, and few English stock
iobbers have given her bad name through
out the world. Her bonds were originally
issued to the State Bank, to be used as col
lateral pledges in obtaining funds LOT the
capital of the Bank. II was an awkward
way Of guaranteeing the Banks obligations
The English stockholders who furnished the
capital did not like to receive them as COL
laterals, and induced the Bank Agent to
make an absolute sale of the bonds to them,
in viohtion of the provisions Of the law by
which they were authorized This sale the
State was asked to confirm, but refused, al
leging that she would be liable only when
the Bank should have been pursued to in
solvency. The affairs of the Bank are now
nearly settled, ard deficiency of only
about 81, 200, 900 exists in her assets, which
the State is preparing to pay in full and be-
fore the bonds are due. With State tax
of only one-sixth Of one per cent. on the
present low valuation of property, surplus
Of $50, 900 to SIS, 900 annually remains I'M
expended in the State Treasury, which is to
be appropriated to redeeming the bonds
This surplus will be rapidly increased by the
rapid augmentation Of taxable property Of
the State. The last Legislature refused to
reduce the rate of State taxation, and or
dered the aceruing surplus-whatever it
might be-to be used in canceling the State
bonds ~. .-.a l.- ...-.
Arkansas has one of the most prudently
and economically administered State gov
ernments in the Union With population
of half million, the entire expenses of the
State for the last year was less than $780,
900. The whole expenditures of the State
government Of Arkansas for 1853, were less
than it costs to support the city of New
York for the space OF seventy-two hours.
At the time the State Bank was estab.
hshed, whose capital was raised of the cred
il Of the State Bonds, another institution
was chartered, called the " Real Estate
Bank" whose stock was made up of mort.
cages on lands and plantations, on which
the active capital was borrowed and credit
for its circulation obtained. Founded upon
such uncomfortable basis, with imprudeni
management, both institutions collapsed
within short time after they were put in
operation. Though the mortgages to the
Real Estate Bank were taken upon an ex.
kavagant valuation of property at the time
they were made, the extraordinary appreci.
alton of property has made nearly every
one of them ample security for the debt anC
interest for which they were given. Ant
the Bank after passing through the depict
ing process of liquidation in the hands of I
board of commissioners and receivers, viii
finally realize assets enough TO discharg'
all her liabilities, and leave a small surplu:
to be divided
A large portion of the mortgages have
been liquidated; sale of the property o
those unpaid, will be made in about a year
to close up the affairs of the Bank. Tn
property to be sold includes large numbe
Of valuable and highly improved planta
tons Spectators are looking forward I
the sales as chances for profitable invest
ments. The preservation of the fnaneis
honor, and the pecuniary prosperity of
State is a matter of pride and interest {
every citizen Of the country, and we ar
grati6ed to see one of the younger sister
Of the confederacy recovering from her earl
financial errors and difficulties, and honors
bly, redeeming all her obligations in tn
FIRST period of her prosperity.