The Van Buren press., 1860-06-29
Judge Rectors Bank Policy.

ability to fill with credit to the Etate, the
i Gabernatorial Chair, has cut some fantastic
intellectual tricks, and evidenced his great
want Of practicabili,y in letting people know
what he favored.
] His Bank policy was one of these, if it
could be so styled, interwoven as he hal it
| With Railroads. lie laughs at "Govcrnor
Conwhys policy" which as l understand
| it, is to make the assets of the Bank, and
the securities given by Stockholders pay
the Bank debt thereby relieving the credit
of the State Of suspicion and protecting
tax payers from loss.
His Rector's) policy is to give to Rail
road companies, Bonds of the State of Ar
kansas, drawing six per cent interest, and
running twenty-five years, to an equal
amount with the out standing indebtedness
of the State. The Railroads are then, as
an equivalent for these bonds, to give their
Stock to the State in a like amount. The
State Is then to take the Stock so trans
ierred to the bank bond holders and cancel
the bonds thereby not only paying the
States Indebtedness, but at the samo time
building railroads, without its costing the
| State a cent. This looks very well, ard if
tho Eaune man had lifted himself o,o. .i..
fence by his straps 1would have some faith
in the scheme. This thing of paying debts
and building railroads without money, is
in finance, what per petual motion is in me-
chanics, something not yet discovered.
Suppose We examine this splendid pro-
position. State bonds are now worth from
forty-five to fifty five cents on the dollar.
The State Indebtedness is little over three
millions. What would be the result of
putting on the market three million dollars
worth of bonds-if they would sell at all, /,
1t would be at some very low fgure-if
they fail of sale entirely, then of course,
overheard goes this strap lifting PROPOSE
ton. If however, the bonds were to sell
for thirty-fve cents on the dollar, would
the Railroad Companies trade their Stock
for such paper? If they would, not then
OF course the straps are busted, and the
young man not yet over the fence. But,
say the Railroad Companies would trade
their Stock for this deprecated paper; say
they would let their dollars worth of Stock
so for thirty-five cents-what would be tn,
result? n Road which should have cost
the people of the State one million of dol
lars, would by this splendid scheme, cost
them over three millions. The stock
would be worthless of course. But, they
may say, the State would make her bonds
as valuable as the Railroad Stock for in-
stance, if the stock is worth one hundred
cents ON the dollar, then the State, to make
her deprecated bonds equal to the stock,
would have to give three dollars for one
and if she purchased stock enough to trade
for her outstanding bank Indebtedness,
amounting to over three millions, it would
cost her in b9n,is oyer two millions of dol
lars. So. instead of following Conway s
direct "dirt road policy" as it is Called
paying of the Indebtedness with the secu
rites given to the State, thereby restoring
the credit OF the State, and placing her in
position to gi:c material and effective aid,
we arc to start off on a splendid circle,
looking for perpetual motion, and finding
ourselves hopelesSly in debt-our credit
gone, and no roads worthy of the name.
But to further show the utter absur,lity
OF this Juggling circle, ,chich prores Judge
Ltecfor to be the man for Gorernor- the
Federal Government owns about !, million
dollars of Arkansas Indebtedness, includ
ing bonds, and interest on them. Does
any sane man suppose the government
would trade the bonds she holds for Rail
road stock? Would any Democrat go to
Congress and propose thing so absurlly
ridiculous If one could be found, would
he not be laughed out OF Washington City,
1t Is too ridiculous-the Government own
ing the Railroad stock of the State. So,
if the Government would not do SO, down
would come the gentleman in straps, again,
and not yet over the fence.
But again Holford l. Co., of London,
own bonds which the State are bound to
! pay as we'll as many of the hypothecated
bonds, which the State has long since deter
mined never to pay. Holford or his agent
refuses to do any thing, unless the State
will treat all of the bonds as good and val
id. This the State will never do, if the
voice of the people can be heard and right
and Justice prevail. Then again, if Hol-
ford d Co., fail to come to an understanding
with the State authorities, our man is not
vet over the fence. But suppose by the ac-
tion of politicians, Uolford & Co., could
get the State to pay dollar for dollar for all
the bonds they now hold-thc English com
pamy would make in clean cash, something.
over million of dollars, and they could
well make several politicians rich, and still
have enough of what the State had been
swindled out of.
Yet again, the State is now amply secur-
cd by the Real estate Bank mortgages, for
all of her Indebtedness, on account of the
bank Whenever any change is made in
that State Indebtedness, then by operation
Of law the lands are released and mortcar-
ers so free. The mortgagers would make
the amount of their indcbtedness-a clear