Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1872-07-21
ARKANSAS.
State LeVee Bonds and Other Securities
Mr.. State Treausurer Pages
Statements.
How Bonds are TO be Redeemed-When
Interest Is Paid-The LeYee In
prOvement Fund.

Interest Is Paid-The LeYee I'm.
prOyement Fund.
/ EDITORS APPEAI-AIy attention ha
( been called to an article which recent,
! appeared in the financial columns o
your paper, commenting on two com
munications published last week in tn
1 New York Times, relating TO the char
acter of the security issued by thu
| Auditor of the State of Arkansas, ant
/ denominated Arkansas State leve'
/ bonds.u In that article you assert tina
/ both of the communications alluded &
came from the "State agent" and tha
/ "these two manifestOes, under two sig
natures. were written by the same indi
I vidual,n and inspired by Hon. Henry
/ Page, Treasurer of the State of Arkan
sas. The object of this communication
| is to correct your misapprehensiOnsu upon
/ this subject and the erroneous impress
sions which your article was calculated
To create. as wen as the unjust refiee.
tions upon Colonel Page.
The first communication published IN
the Times, and signed -, " was written
by myself two days prior TO the arrival
Ol NUAVLlE1 i axe III N4Al' NAAN anu AAb We
not aware of the authorship until in
formed bv me of the fact. The second
communication, signed "W. B. ," [ never
saw until il appeared in print, but sub
sequently learned that il was written by
one of the most respectable bankers in
this city, who is large holder of each
class of Arkansas State securities, and
who also controls even 4 quarter of q
million of leyee warrants.
YOUR STATEMENT THAT MR.. PAGE
wrote to Memphis in March last
that the levee tax was rapidly col
lecting, and would he faithfully ap-
piled to the payment Of the in
terest on the warrants, is substantially
correct; and if you will take the trouble
to inquire at the Office of the State Trea-
surer of Arkansas, at Little Rock, you
will be informed that Mr.. Page has re-
ceived all the coupons on levee warrants
which have been presented at his Office,
in settlement of taxes levied for the
payment of the same, precisely as he
agreed to do, in accordance with the re-
c0mmendatiOn of the Commissioner OF
Public Works; and furthermore, that all
the funds which he has received. in adj
dition from the levee tax, have been
faithfully applied to the payment of the
interest ON the bonds.
Mr.. Page never asserted that the in
terest on these leyee warrants would be
paid; but he did assert that the tax for
the purpose of providing for that was in
the course of collection, and when re-
ceived by him would be discussed as
provided by law, in the payment of the
July and January coupons when due.
/ learn from the State Treasurer
office that the outstanding leyee war
rants amount to two million one hun
dred and eighty-five thousand dollars
the whole amount of three million dol
lars limited by law having been issued
in payment for the construction OF
Ievees, and over eight hundred thousand
dollars having been redeemed and can
celled by entry for lands, and that about
twenty thousand dollars, including cOu-
pons received, is the total amount that
has been paid into that office on account
of levee tax.
As / stated in my communication to
the New York Times, it was impossible
for Mr.. Page to pay the
sENI-ANNUAL INTEREST,
due on the first of July, Gin consequence
of the issuance of injunctions re-
straining him from collecting the
tax in several countless" and that
the funds could not be obtained for
the purpose until the injunctions were
removed by the courts of Arkansas, and
the collection of the tax enforced. The
levee law, unfortunately for the holders
of the warrants, does not authorize the
Treasurer to borrow the money or to ap-
propriate any of the funds in the State
Treasury to meet the interest.
/ am in hopes that some action may
be taken by the next Legislature of the
State of Arkansas to secure the prompt
payment of this interest in the event of
the noR-collection of taxes levied for the
purpose, or the existence of iniunctions
restraining these collections. ] re-assert
that
THE LEvEE WARRANTS.
do not form any portion Of the bonded
Indebtedness Of the State, that they are
special paper, provided by special act for
a special purpose; and that their pay
ment is provided for in a special man
ner, outside of all other State obliga-
tions; and, furthermore, that it is the
recorded opinion of the New York Stock
Exchange that the faith and credit Of
tbe ,Sdte are not pledged in the war
rant; and that owing to this decision by
that body, the warrants we've refused ad-
mittance to the regular list of State Sc
curities.
The constitution of the State Of Ar
kansas, precludes the Legislative body
from loaning its credit without ratifica-
ton by the people at a general or special
and if the leVee warrants are
REGULAR STATE BONDS
in which the faith and credit
of the State are pledged, then
the entire issue is Unconstitutional
and illegal. To avoid the con-
objection, and to carry on
the work of internal improvement,
the Legislature created a special ar
known as the "LeUee I'M
proUemelH Fund" which is made up by
special tax.
The funds arising out of the internal
lands are devoted, by the
ievee law, to the redemption Of the
levee warrants, and when thirty years
from date of their issue it shall appear
that all the warrants have not been alb
sOrbed in the usual method of transfer
and redemption provided in the law,
then the remaining bonds viii be paid
at the State Treasury in lawful money of
the United States.
HOW ISSUED.
The leyee warrants, as 1t is well
known, We're issued and signed by J. r.
Berry, Auditor of the State of Arkan-
sas. The signature of Henry Page,
State Treasurer, is simply an dttesidtioR
Of the registry OF the 1CdTTdJ7ts "a the
State TredsaTeT's office, as required Gy
'd1r, and does not carry the force which
IS conveyed by his signature as
State Treasurer affixed 10 the regular
State bonds, which are signed, rs re-
luired by law, by the Governor and
State Treasurer.
Over one-half of the entire amount Of
Ievee warrants outstanding are now
owned and controlled by bankers and
capitalists residing in this city, and not
one of them has expressed any ''indig-
nation" at the nOn-payment of
The July coupons; but having
purchased these warrants from parties
who were willing or forced to sacrifice
hem. In the absence of an established
market quotation, they are perfectly
contented to hold them until redeemed
oy the State of Arkansas, as the bank
ars mt Little Rock are satisfied to hold
-he Treasurer's certificates, which are
receivable for annual State taxes.
DAVID h. SICKEI.S,
Late State Agent.
POSTSCRIPT.
Payments of interest on Arkansas
State Bonds, since the funding of the
Did anti-war indebtedness, have been
made as follows:
Funded Debt Bonds, bearing six per
,ent. interest, due 1899 and l90O-amOunt
ssued, S2,S0O,000; lst payment, July,
1859; I'd, January, 1870; Sd, July, 1870;
Ith, January, 1871; 5th, July, ISL; 9th,
January, 1872; 9TH, July, 1872.
State Aid Bonds, bearing seven per
cent. interest, due lS99-amOunt is
iued, s., $50, 800: 1st payment, October,
1863; I'd, April, 1870; Sd, October, 1870;