Arkansas true Democrat., 1860-07-14


 money to be appropriated Co purchasing the bonds of the State due in 1868, and which can now be bought up at 45 cents on the dollar. He showed that the sum of three hundred and seventy three thousand and ninety-two dollars, had been drawn from the vaults of the State Bank to pay the ordinary accruing expenses of the State, and that he believed it to be nothing but right and just, that this sum should be re- paid to the bank, wAh six per cent interest, to this purpose he desired that the State tax should not now be reduced He show cd that our State tax at present is smaller than any State in the Union. He was in favor of paying off this debt while it could be done at less than half price, and oppos- ed to hls competitors course of waiting till the crisis arrived before taking any ac- tion, as by that means the State would be forced into repudiation.
 In regard to the Real Estate Bank he favored the policy of foreclosing the mort gages at the earliest moment practicable, and making the lands which are mortgaged and which are legally bound pay the debt He showed very conclusively that this could be done in less than two years, and that on account of the Real Estate Bank the State would not be called on to pay a dollar Col. Johnson then proceeded to dissect and analyse the policy of his competitor. In regard to the first plan proposed by Judge Rector, he showed its utter impracticability as very large number of the holders of craI IanHc lo,, scattered all over the world, and that many more were unable to pay, and therefore such proceeding was frivolous, a waste of time. and not worthy of being entertained by sensible man for moment.
 He then took up the second plan of his competitors. He showed that this policy was that the bond holders should be called on to surrender their old bonds which, on the lst of October will be due. and which together with the coupons attached will call for S2,OOO. That his competitor proposed to issue new bonds with coupons attached, the bonds calling for $l, ,000 on the face He showed that this would be offering bonds which only draw per cent interest in lieu of the old bonds which now draw per cent, and that no one would invest money at per cent in Arkansas bonds when they command 10 and l2 per cent for their mo- ney anywhere else. In regard to the third and last proposition of his competitors, he suggested that if he was convinced that the Judge possessed such "astute financial skill" he sincerely wished that the debt was S50,Q00,000 instead of $3,000.000, and that he would advise his friends to vote for him. But Col. Johnson proved con clusively that there was no paying railrosd stock in Arkansas. He said his competi- tor had stated&on every stump previous to their meeting here, that the State was to offer paying stock for the bonds, but he had come down to Memphis and Little Rock railroad stock He proceeded to show the practicability of carrying out this plan, cven if his competitor possessed the neces- sary "astute financial skill.' The bonds are owned part by the United States in trust for the Smithsonian Institute. It is we'll known the United States does not dab ble in railroad stock. He doubted not that MT Holcomb would gladly accept any stock for his debt, as the State of Arkan sas denied owing him anything, and he doubted not that the State never would re- cognize the debt Col. Johnson next read from the Old Line Democrat the following extract:
 |" Now what Judge Rector proposes is simply to
 fund her liabilities account of the debts of those two banks-that is, to collect them altogether and place them in such condition to secure the uti- mate extinction of principal, with provision for the payment of annually accrung interests He proposes to do this by simply calling in the old bonds, ,chich ciH Je shortly due, and issuing new bonds covering the whole amount of principal and interest due, payable, say, 9 70 gears Gter dae Judge Rector denied that such was his bank policy, he pronounced any statement to that effect, as false, and he utterly repu- 1 diated 1t.
 Col. Johnson addressed few remarks on the subject of federal politics; he also took the true southern ground.
 Col Johnson closed his speech by few remarks personal to himself. He stated that he neper had anything 10 do wiM any ot the 6onks of Mis Stote either ds stockholder, director or other officer, nor did he e0er 5or- row dollar from any of hem, and he is noac, and neuer ras indebted to any 6ank- All the insinuations and charges made | against him in this connection do him gross injustice. He is in no way concerned in either of the banks, and never in his life had any connection or transaction with them; nor is he in any manner interested in having them wound up, more than the deep
 interest he feels as citizen of the State to have the State released from the debts that threaten her on account of the banks. We have not time this week to notice the reioinders, but will do so at another time. Judge Rector IS better declaimer than Col. Johnson, but Johnson has sound practical sense, thing which the Judge is not over burthened with