New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-02-01
,HE DEBT OF ARKANSAS.

fHE DEBT OF ARKANSAS.
BONDS AMOUNTING TO TWO AND A HALF MILLIONS
INSTEAD or TWENTY MILLIONS AUTHORIZED
THE STATE INCOME FOREsrALLED by TIN
NEUTRALITY-SUSPICIOUS. OF RAISING MONEY
TO PAY THE EXPENSES or THE GOVERNMENT.
TO the Editor or the Tribune.
SIR: The Associated Press dispatches have
stated that he Legiiture OF this State has recently
the issue OF ss 10000 OF bonds TO retire tho
floating OF the Safe and TO pay expenses OF tho
Government for year, which II seems hardly necos-
sary 10 contradict, 1t IL absur on IL lace fe' 90
varous nowspapers taken the dispatch a. tex 70
preaoh against tho present Government and otherwise
to adj to the dscredit under who" tie Ssie no" Ia
bors no; the courtesy of TIE Tribune to give US
chance 10 be heard.
Fnst I will state that the bonds authorized by tts
legislature 10 bp issued for the purposes ABOVE given.
amount to 81 1000 Just Ono-tent OF the sum stated
by the dispatch ask leave to explain why this action
was deemed 20 necessary. The present Legislature
Is that has been chosen by the people since 1864
which has been allowed assemble. We find the Treas
ury Of State empty It's credit OankIupted ts bonds
under protest, it, anticipated by tho i'sns
Of Treasursrs certificates and other items Of 1oauns
debt winch arc receivable in payment " for an
dents due the State except interest on tho pushs
Debt" Examinations of tho books show that when
Powell CLAYTON took possession OF the State IN 1893 az
Governor the bonded deb: OF tn ate amounl@i 10
SIG52A0l 80; that its floating debt was nothng-On he
contrary. S30&T IS OF u ;. currency IN 'us
Treasury Farther examinations show that from 1868 20
1914 tne period the State has been under carpotOas
ru, there WAS collected the people in taxes Tor
stare purposes the OF S67I5l Co. and tAit mere
was plId during period account OF mteres'
and the sinking fund the sum OF S5I5,2oi 70 TIE ieh-
ciency as shown by the floating debt - about $4,000
sr period W. have, then, this kind Of an ac-
count OF debit " these people to the State:
l. Amount cash IN Treasury i'm ls6S....... SlS1W -
O. Amount Olected IN taxes 1853 D lSi 60345ll %
3. Amount 1Jating debt iucurred.-.-.. I''V NV y"
Making. ss5OJ,7io 70
II we credit them 10y mo amount pad ous -
on of interest. &c............... 6lo'2oi %
Itsnil leaves the sum af.............$3l7 1854 Il
"a the cost OF governing the 3 ate Tor yearsl
Iree hundred thousand dollars per year. or slS'"o
for the whole period wOuld have been ample for 0ood
government In addition TO tho above SUMS theSs
people, on one pretext AMI another, increased our
honied debt nearly s9OO).0)O for which tue state
las received no substantial benefit IL Is
with this appalling condition Of finance
that the present legislature has to deal
a. tho Goatng debt is rec iyiblo in payment OF any
tax That 10 levied except tax to meet n;ore1son
The pu0 eb and tho amount OF this!doos - sum
cent - absorb all OF for three or four
year, 1t - maniiestly impossible 10 raise money! for
ordinary expenses by taxation until this debt Is ds
posed of In some manner. Hence the Finance Commit
OF the senate reported tho bill TO provide Tor tne
issue ot slOoOOo OF bonds to retire tho floating debt
and 10 dcfray the expenses Of tho State Governments
for Que year. holders OF the floating debt cannot
be- compelled 70 fund it, therefore endeayor
was made to give extraordinary security TO
the proposed to be issued to make them OF
sufficient value to induce voluntary funding I'll pro-
yded that all OF the unsOd lands Of the State, exceps
school lands and lands on which public buildings are
situated shall be mortgaged to secure the bonds and 10
is urther provided in the nature Of contract wthn
the projection the Federal Constitution that money
for rho interesc aud sinking fund these bonds shan
be collected and set apart out OF the first moneys re-
coivod into the Treasury any account IN each year,
ana an authority is conferred upon the courts OF the
State OF the United States 20 compel tue officers OK
The s ate to perform the conditions Of tho contract
No subsequent action OF the State authorities In
any manor prejudice the rights Of holders OF these
bonds. These bonds arc fact made preferred debt
Of the STATE and their payment is unquesonably So
cured State bonds are better secured II any
friend OF State better plan TO meet the
case there is doubt but that our Legislature WIN
q IDLY adopt IT, The people OF the State earnestly
ds!rous OF getting on firm financial ground The state
advantages of SOIL and production equal 10 any state
IL rhe Union, aud II has, without exception, tho bss
climate IN the United states. We need only
settled government ana settled finances To insure q
large immigrant OF rSt-cass people from the North
Western States. We think tho first OF these objects Is
practically attined the present government Is OF the
r r te ReGP y Co Dg g We bp so that
financial troubles Will sO0l be settled Ia addition
~ hc bill for Retiring the floating debt already men
toned Joint resolutions have passed the senate, ana
o. our Just bonded debt, with getting our pro-
tested bonds out Of the market and OF placing
the debt in such shape as Will enable US 10
meet It, With tho eDcOuragcmenI and assistance
friends in other States our troubles VIII soon DO
proper remind the readers of The TRIBUNE that these
IrUdois the result tho OF tho people OF
Arkansas, but have been placed upon them oy power
which they could nel her control nor resist
JAMES NJ. LOUGHBORoUGH
Chairman Finance Committee.
Senate Chamber, Lille Rock. Arkansas Jan Is, 1915