The Russellville Democrat., 1876-06-29

the people may judge correctly of
 the soundncss of the opinions pro
 mulgated on the stump by candi-
 dates for the Legislature and Sen
 ate. General Blocher, in his his
 tory of Arkansas finances, declares that .'thc state cannot afford to be
 placed in tic attitude of a repu- diator,' and yet on the next page advocates a reduction of the en- tire debt by sealing" to $2,000, GOO. We must not refuse to pay the bonds, fraudulently and file gallv issued, but 1t is very proper to refuse to pay ninety per cent. of both honest and dishonest debts, What is this but q repu
 diation of 90 cents on the dollar. Our State debt, according to the
 history mentioned, is nearly SIS, 000,000. The assessed valuation of property in the State is S95,- 100000, about. The debt, is nearly one fifth of our whole prop
 erty in amount. Of this debt
 little over $S,000,000 is fraudu- lent and illegal and onght not to be paid. If the State should re fuse to pay this amount (the Railroad Aid and Lcvce Bonds our debt would be s, 100000. Of the IIolford Bond debt, only $121,
 900 is fairly due, with interest from date of loan, as adjudged by our supreme court in 24th Ark. Reps. But leaving this out of the calculation for the present, let us see, how the debt justly due, can be managed. We can only levy a tax of one per cent. under our present constitution.
 This gives us, If every dollar is collected, $900,000, or $20,000 less tIan enough to pay the in terest on the entire dcbt. Let us now reduce this sum ten per cent. for delinquents and we have a revenue, at the maximum rate of taxation, of $95,000 as an annual revenue. This amount would not pay the interest on the debt ard pay expenses of the State government. Another thing to be considered, is, that much of this would be paid in State scrip, which could not be used in paying interest. Having refused to rec
 ognizo the $S,000,000 (R. R. and Lcvee bonds) we still could not pay the interest on the balance. The bonds would continue to be as they are now, worthless secur- ities. Would not the holder be perfectly willing, to take twenty
 five cents on the dollar, and let his new bond run 30 years, if he could calculate certainly on the interest being paid promptly. He would (far then his bond is of some market value after the first payment of interest, go to par. Say when this is done our debt figures up to about $2, 100000 the interest on this we can promptly pay and also reduce the rate of taxation. Why, then refuse to do it? There is no place for nor bid sentiments in this matter. It is purely business transac- tion. It cannot iniure the credit of any State or of an individual, to refuse to pay what is not due and owing. It will improve our credit, for it puts us nearer in q condition to gay our debts. II the fraudulent bonds are wiped out, we can then make terms with other creditors, and they will gladly take twenty five cents on the dollar and 90 year bonds at that; because they can see, by simple Arithmetic, that we can pay. We have no right to recog nize any portion of them, payable. We owe 1t to generations to come, who are to help pay our debt, to act at once in this mat ter. We should refuse to scale 1 any part of the Railroad aid, or Levee Bonds, and ought to refuse to pay more than is justly due of the Holford bonds.