Des Arc citizen., 1860-08-01
From the Old Line Democrat
 Letter from Judge Rector.

J. w. GREENFIELD, Ese.,
 Pine Bluff, Ark. DEAR SIR: am in receipt of your let ter of the Sth inst, addressed to me al | Helena, in which you request me to set forth specifically my views touching the | liquidation or payment of the bonds issued by the State on account of the Real Estate Bank. 1 embrace the first opportunity to respond to your inquiry.
 After applying the assets on hand to the payment of these bonds, (which, accord ing to computation made by Gordan N. Peay, the Receiver, amounts to thirty three per cent. of the original stock, } there wilfremain sixty-seven per cent. un- paid, for which the State is liable, equal to one million four hundred thousand dol lars.
 These bonds are due on the 26lh of Oc- tober, 1861. To hold the State harmless from their payment, the stockholders have mortgaged to the State and bond holders 187 ,310 acres of valuable land. Beside this, each stockhoder has given a penal bond to the bank in double the amount of his stock, which rests as demand or lia- bility against the stockholders or his estate, if he be deceased.
 The question then arises, what course shall the State take to preserve her credit, and save herself from ultimate loss on accoun, of said bonds? To think of tax ing the people to pay the debt is out of the question. 1t is not theirs, but a debt of the stockholders which they ought and can be made to pay, either out of their perso- nal effects or the lands they have morlga- ged.
 The cheapest and most expeditions mode 10 do this is the great desideratum.
 In the first place, it will become the duty of the Pulaski Chancery Court which has possession of the assets, to convert the lands and other effects on hand, into ready money by the time the bonds fall due on the 26th of October, 1861, that so much, or to that extent, the outstanding bonds may be paid off and discharged. The re- maining defcit-- one million four hundred thousand dollars-is then to be provided for If elected Governor. shall recom- mend the passage of an act, requiring the Pulaski Chancery Court to ascertain, through the Receiver, the amount for which the State will be liable, deducing therefrom the proportional amount to be paid by each slockholder; providing in said law that the Receiver be authorized and directed on the part of the State to re- ceve from each stockholder one- fourth down in cash of his indebtedness or de6c- 1t, giving bonds with security at one, two and three years for the remainder, which, when paid, to entitle the party to release from the State upon the bond and mort gage.
 This will afford means for an amcable adjustment between the State and the stockholders, saving expensive and pro- traced litigation to both.
 There are doubtless many of the scock- holders, however, and the representatives and the delegates of many, who will elect, indeed prefer to be sued, as in all sults there are chances of escape. Agalnst this class the State must necessarily proceed by suit. Where the stockhoder is sol vent, payment to the State can be coerced by suit at law upon the bond if inso!vent then proceedings in equity for foreclosure of the mortgage must be resorted to. These suits may be commenced as soon as the bonds fall due.
 The True Democrat grossly misrepre- sents me on this subject. That paper an- nounces that am in favor of releasing Me mortgaged lands, and tkrowing he debl upon the peopJei l have never entertain ed, nor expressed such sentiment in my life-no sane man seeking popular favor would do so. If was slockholder, or in any way indebted to or connected with the bank, the assertion might savor of plausibility. But am not, and never was a stockholder-do not owe the bank far thing, nor own foot of land mortgaged to 1t.
 The State Bank bonds are not due un- til 1868 and 1887, and 1 am opposed to collecting money by taxation for their pay ment until they become due. am op- posed 10 immediate taxation to pay this debt, because in my judgment it would be better policy to delay the payment by way of taxation, at least until the debts become due, inasmuch as there would be more wealth and larger population then in the State, and the burden of taxation would of course, fall much more lightly upon the people.
 The above I hope will prove satisfacto- ry to you and others who have written to me upon this subject. And in consequence ofmisrepresentations published throughout the Stale by papers opposed to me, shall endeavor to give this letter general circu- lation.
 Very truly your ob't serv't,
 H. M. RECTOR.
 TIE TTuE DEMOCRAT CAUGHT AS A