Arkansas true Democrat., 1860-06-23
MT. Bentham and MT. Gradgrird Dis
 coursa Concerning Rector's Bank

G. Have you read Rector's circular ana his scheme to pay off the State debt With out money?
 B. have, and Peek's exposition of 1t.
 G. What do you think of it? | B It is the most barefaced, unmitigated humbuggery ever attempted before sensi' ble people. A little examination will show its utter absurdity The editor says that the mortgages cannot be foreclosed until nossession is obtained of the bonds, and therefore the lands may go free. Perhaps the next legislature may show him differ ently. But Mr. Peek proposes to pay them 6y issuing neac bonds.
 G. Will not this release the morgaged lands?
 B. Assuredly:: Nothing is clearer than if I give you mortgage on my house ana lot, conditioned that if note or bond IS not paid, you may foreclose it, and you take new note or bond, you release the mortgage. If you attempt to foreclose plead payment and show the note was can celed
 G. Where then is my remedy?
 B. On the new note which you took in lieu and cancellation of the old one, and by so doing released the house and lot This is the first step in the scheme of the bank ites. The next step in this deectable scheme is to issue these new bonds to rail- road companies and these companies are to give the old bond holders shares of stock.
 G. But suppose the bond-holders prefer the State as creditor to a railroad com pany?
 B. Oh! bless you, that is provided for. Says the great expounder of Rectorism:
 "The holders of the old bank bonds and coupons will be made to invest the means which they de- rive from this mode of adjustment, in the internal improvement projects of the State"
 G. But how will they !" make" them?
 B. Tut, man, are there no such things as bowie knives and pistols? But, to pro- ceed with this beautiful scheme. The com panies are to give the State bonus. In one place they are going to aid the rail roads, and in another, they are requiringa bonus. See what the editorial expounder says:
 "It is thought by those conversant in such mat ters, that these railroad and other internal improve ment companies in consideration of the great bene | fits he ivai he auODtlOQ will be willing, either to pay the annually accruing interest on the State bonds and leave the State to | pay only the principal at the end of twenty-five years; or that they will pay the principal, them selves, when it becomes payable, and leave the State only to pay the annually accruing interest thereon"
 You remember that Rector was to pay the debt without money, but they come down peg and make the State pay the principal or the interest. This is State aid to railroads with vengeance. Let us examine into this humbug little. These bonds are worth, say fifty cents on the dol lar and bear interest at six per cent At the most these companies could sell the bonds at half their face which would be equal to paying twelve per cent. interest," Further on, we are told, the companies must secure the State by mortgage on their lands and road. When money can be had at six per cent by giving good security. this scheme supposes these companies will give the State twelve per cent. or pay in- terest on million and a half of dollars, when they can only receive one half that sum. The fact is that no railroad compa- ny west of the Mississippi can "pay hand some dividends" for the first five or ten years It will require a struggle to build them and an effort to keep them going for the first few years. The advantages to be derived from them is that they will develop the resources of the country. enhance the value of land and bring immigration. Then they will pay, and not till then?
 C.. Has not the Little Rock and Mem phis road already mortgaged its lands
 E. At meeting of the directors it was resolved to mortgage their lands or part of them to raise money. Of course, as the Rector policy insists that the companies shall secure the State, the Memphis road Is cut out However, those who heard Rec tors speech at the internal improvement meeting, at which he says he presided, will not be surprised at this. He denounced the Memphis road, and actually succeeded in driving MT. Bebee from its support.
 G. Mr. Peek says these bonds are owned by foreigners and if these new bonds are issued to railroads, and old bonds held on to by these foreigners, will there not be two sets of bonds?
 B. Of course. All this Old Line talk about aiding railroads is humbug The object Is to issue new bonds so as to ope- rate as a cancellation of the old ones. The holders of Real Estate Bank bonds know they are secure and will only give them up to be sued upon.
 Again. This new feature of possession of the bonds is an old device. Several years ago, the bankites said they were ready to pay, if the State would present her bill. They argued that the lands were worth more than the debt and each should pay its equal proportion. This was just, and Gov. Conway appointed accountants who examined into both banks and rendered a full account, showing the exact amount of indebtedness. The legislature passed an act allowing bank debtors to pay in bonds to the amount of their mortgages, reserv- ing the right of drawing out such sums as they paid in more than their pro rota share, upon winding up the banks. Several did this and thereby released their lands.
 The idea of mixing railroads up with it is silly attemp to take advantage of the enthusiasm on the subject of internal i'm provements, and use it as means to carry