Arkansas true Democrat., 1860-06-16

| "QUERIEs-Will the True Democrat inform us and the people of Arkansas, what process is con tempated by "Gov. Conway's policy,'' whereby the State will beenabed to foreclose the mortgages on the k. E. Bank lands, and thus liqudate that 1 deb.?
 l Will not the State first have to obtain possession of the bonds of that bank before she can proceed to toreclose the mortgagel
 How does Gov. Conway propose to get possession | of those bonds?
 What policy does Gov. Conway or Mr. Johnson, hls heir apparent, propose for qudatng the State liability on account of the debt of the State bank trhich has no assets?
 Ii these questions are directly, fully and sats- tdctorny answered then will admit that Gov. Conway has polcy-whether it be good or bad will remain to be seen.-Old Line Dem. l To queries first, second and third, we reply that it would be exceedingly strange if the people of Arkansas should elect a legislature so dull that they could not de- wise way to foreclose the mortgages on | the R. E. Bank lands. As to whether the State will have to obtain possession of the | bonds first, and in regard to the manner of obtaining possession of said bonds, as they SAS ASSoi quCSllOlS, we WVulu uOOCotll ou3 gest that our cotemporary consult some ex- judge of the supreme court thereupon. It IS reasonable to suppose that Gov. Con- ways policy will be as it has hitherto been, such as to secure the monetary interests of the Stale against the odious combinations of the bankites. The courts of the country have hitherto sustained his policy, and we suppose that whatever he suggests in the future, at the proper time and place, will be in accordance with the law and with justice and equity to all parties. In regard to the course Gov. Conway and Col. Johnson will pursue for liquidat- ing the States liabilities on account of the debt of the State Bank Which las TO assets Ia slight mistake, we refer our captious neighbor to the address of the democvatic nominee for governor, to the people of Ar kansas, in which it will find many things 1t never learned before
 The following extract fully replies to the question:
 According to the report of the accoun- tants appointed by the Governor to exam inc the condition of the State Bank, it ap- pears that the debt of the State on account of the State Bank, after all of the assets are collected and applied to the redemption of the bonds, will be something less than one million one Hundred Mousand dollars IT. To meet this debt, all that is necessary is that the State bould restore what, under the acts of 3rd February, 1S43, and 10th January, 1915, { see Gould's Digest, chapter l67, l it took from the vaults of the bank According to the report of the accountants it withdrew from the bank, at various times, to pay the ordinary expenses of the government, the sum of three hundred and seventv-three thousand. two hundred and ninetv-two dollars This amount was taken from the capita! of the bank many years ago when the credit of the State was such she could not borrow any money, and when the distress and embarrassment of her citizens were so great she could not in crease the taxes. This amount, thus ap- prOprlated Dy the NJate, Was pieuSeu, as the capital of the bank, for the payment of the debts owing by the bank and it is hon orable and just that the State should restore it; and as the State Bank bonds are and have been drawing interest at the rate of six per cent, it is right and proper that the State should pay six per cent interest upon the amount she used.
 With this sum, the principal and inter est, amounting to six or seven hundred thousand dollars, the State Bank could re- deem all of the bonds and coupons of the State now outstanding and unpaid and re- lease the State entirely from all indebted ness on account of the State Bank. The State is now in a condition and amply able to pay every dollar she justly owes. She could make the necessary provision at the next legislature, and commence the pay ment next year, and in very few years, four or five at fartherest, she could wipe out the last veStige of the debt that has so long overshadowed and crippled her ener- gies She is amply able to do this with out increasing her taxes upon the people a particle, and it is too glorious a result to be longer deferred"