Arkansas true Democrat., 1860-07-21
Let the People Consider.

io tuiOWH away. U io aHcduy |" "OiA Ano"Ai and generally admitted fact.
 Let the People Consider.
 We have heretofore shown that the con- stitution of the State of Arkansas only au thorized the General Assembly to establish the Real Estate Bank, and to pledge the faith and credit of the State to raise the funds necessary to carry into operation the bank, "PRovIDED, such security con de giyen 5y tue inaiudual stockholders as UiH guarantee Me Stote ogainst Joss or injury"
 We have shown that the stockholders of the Real Estate Bank had to comply with this provision of the constitution before any bonds of the State could be issued to the bank, and that the stockholders mortgaged lands to guarantee the State and bond holders "against loss or injury" {" and that the lands so mortgaged remain bound for the payment of every dollar of the principal and interest of the bonds of the Real Estate Bank.
 We have shown that the policy of the Reol Estote Bunk disoyganizing party, y carried out, would be in violation of the constitution, monstrous fraud upon the people of the State and upon the bond holders, for to issue new State bonds for the principal and interest of the old bonds would be to compound the interest, and ,could release Me mortgaged funds, and leave the State anl bondhoiders without any se- curity to pay the principal or interest ot the new bonds except by taxing the people, This, too, would he only for the benefit oi spectators who have bought lands that are mortcagel, and that are bound for the bank debt
 We have shown that Col. RICHARD H. JOHNSON, the democratic candidate for Go- vernor, Is opposel to issuing new State bonds for principal and interest, and that he is in favor of making the mortgased lands pay every dollar of the principal and interest of the old bonds as required by the constitution and laws. Col. Johnson Is opposed to robbing the State and bond holders of that "guarantee against loss or iniurv." which the mortgagel lands were intended to be- If the mortgaged lands should be released the Slate would be driven to repndiation. because the bank debt would be thrown upon the State with out any means to pay it, and that too, Tn violation of the constitution, which only authorized the issuing of the State bonds, prouidea such security should first De gioen as would guarantee the State against loss or injury. I. was expected that this require ment of the constitution would be always observed, and that it would protect the peo- ple of the State from taxation to pay bonds issued to the bank In addition to this provision of the constitution there is another intended to protect the people of the whole State from exorbitant taxation, to-wlt- '" .No other or orcater onaount of revenue shoN ct any time be ieUied Man required tor tie necessnry expenses ofhe governmaem unless by e concurrence oftwo-Mird of both houses of Me General Assemby." Now, if new State bonds be issued, and the mortgaged lands be released, the State would be guilty of fraud upon the present bond holders who could never get one dollar for the new bonds issued to them in lieu of the old bonds; for it is evident that "two-Mirds of both houses of the General Assembly" would not concur in taxing the people to pay the interest or principal of those new State bonds; especially if the new bonds were is- sued in violation of the constitution in lieu of the old bonds, to pay which the consti tuition required security to be given. The State would, therefore, have her faith and credit and her honor tarnished, and the bond holders would never obtain one dollar for their new bonds, because it would re- uuire two thirds of both houses of the Gen. cral Assembly to concur in passing law 10 raise the money to pay the interest and the principal of the bonds. The policy of the Real Estate Bank disorganizing party, if carried out, would be, to benefit specula tors in the mortgaged lands, by trampling under foot the constitution by shJting of Me mortgoged lands on to hhe Slate, the Real Estate Bunk de4. by robbing the bond holders of all security for the payment of their bonds; because the State could never, under the constitution, pay either principal or interest of the new bonds without con currence of two-thr,ls of both houses of the General Assembly.
 We repeat that to release the mortgaged lands and leave the Real Estate Bank debt unpaid would be monstrous fraud upon the people of the State, and a monStrouS fraud upon the present bond holders, and would be disgrace to the intelligence and | integrity of Arkansas.