The Russellville Democrat., 1877-10-18
THE STATE DEBT.
OFFICE OF
TIE STATE BOARD OF FINANCE,
 Little Rock, Oct. 8, 1877.

HE STATE DOAkD UT riNANCE,(
 Little Rock, Oct. 8, 1877.
 To the People of the State of Ark;
 When the Constitutional Conven- tion met in 1874 there was very large outstanding debt claimed to be due from the State, evidenced by a great number of bonds and treasury warrants, very troublesome and embarrassing inheritance from the nnwise legislation of the earliest and latest periods of the State Govern nent. The authority of the conven- tion that formed the constitution of 1874 was denied. It was vigorously asserted that it was revolutionary in it's character, and one strong argu- ment urged as a reason why the movement for a new constitution should find no sympathy was that if it were once established the State would repudIate all her debts, and would thus dishonor her name and defraud her creditors. The conven- tion met this objection by inserting ir the constitution this provision:
 "The General Assembly shall from time to time, provide for the pay ment of all just and legal debts of the State." Art. XVI, Sec. ?.
 Finding this provision in au in strumcnt which requires that perpet- ually every official who is inducted into office shall take an oath to sup port it, every consideration forbids that we should suppose that 1t was intended to cover any secret mean ing, or to have any other signifi- canoe than that which the language plainly imports.
 The command of the constitution being imperative, and the legislation being moved by the same spirit which actuated the conyention--the desire to have some settlement of the long pending and ever increasing trouble of the public debt--an act was passed soon after adoption of the constitution organizing State Board of Finance, to which was com mitted ''the general charge and con trol of all the financial interests of the State." Acts lS74-5, p. 72.
 The legislature at the same ses- sion passed a joint resolution, which after preamble, concluded as fol lows:
 But having confidence in the present government of the State, feeling faith in our resources, and knowing it to be the wish of the people to do all in their power to discharge their liabilities, it is
 RESOLVED by the Senate, the II 'se of Representatives concurring there in, That the State Board of Finance be and is hereby authorized and di- rected to correspond with the hold CTS of the outstanding bonds of the State, or at their discretion, at such time and place, and upon such notice as they may elect, to call a conven- tion of the bondholders of the State to meet them for the purpose of dis cussing the questions involved, with view of procuring uniform actionby those interested, with view to eff fecting a consolidation and settle ment of all just debts on a basls which will be satisfactory to the people and within their ability to pay" Acts lS74-5, p. 279.
 The Board of Finance accordingly advertised for meeting of the bond holders. After that letters were re- ccived at intervals from many indi vidual holders of bonds, some of whom were apparently nnscquainted with tEe language in which the bonds are printed, showing that the bonds were widely disseminated throughout large portion of the civilized world. As the holders ol the bonds were thus scattered, hay ing no necessary connection or ac' quaintanco with each other, there was no concert of action between them; and thus the plan devised by the legislature, however well intended met with no success. The result was reported by the Finance Board to the legislature at it's last scs sion. At that session of that body a great part of the time was spent in discussing again the problem of the public debt. A proposition was sub mitted for it's settlement, and scvcra propositions were made for the dis tinct repudiation of portions of tho