The Van Buren press., 1879-01-14

s,sai.,. - ;:,.::::
REPORT OF STATE BOARD FINANCE
The treated of in the Report of
Finance best be by the incorporation of that
Report part of my Message especially the Governor is
-ocio member of the Board coneurng in its views and
statements.
OFFICE STATE BOARD OF FINANCE,
LITTLE Rock, December %, 1873
To the General assembly of Arkansas:
The State Board Finance beg the
report of their action the report
Under the authority conferred by the General Assembly, the
Board contracted loan from Messrs r. w Martin Co..
the 18th day of April 1871 $3O,OO0 which
executed, payable October 1877 per
bonds being pledged a collateral
The paid off and the bonds redeemed
goth day of December, 1877
On the first day of July 1877 the second loan of $25oOO
made with Messrs Latham Alexander Co.. fell due There
unusually large delinquent list and the unexpected
felt from that amounted 500 OO0 in order
meet which, and complete payment of money borrowed
pay interest bonds the Board negotiated temporary
loan from the German Bank Little Rock of 100000.
In July, 1877 the Board opened negotiation with Messrs
Latham Alexander Co.. for loan for payment of
and for payment of accg interest the bonds
the State for the end the first day of july 1873
The result of these negotiations that Messrs Latham
Alexander Co. declared their inability loan in
New York and they thereupon rendered their resignation
financial agents for the State which accepted July 49, 1871
Other efforts then obtain New York
but without In November 1877 the Board obtained
loan through Matthews & Whitaker, of St. Louis, of
for the purpose of repyng the money temporarily
borrowed from r. W. Martin & Co., and from the
Bank above stated and for the purpose paving
falling due bonds and paying accrung the Deaf
Mute and Blind Institutes, and the University Fayetteville
This loan of 100000 thus obtained through Matthews
Whitaker, repaid July l, 1878.
In the month of July, 1s7s another loan obtained
through Messrs. Matthews Whitaker of
other through the parties the August of
800 0oO the expenses of the governments and
pay accrung interest bond were given
payable July oth s79 and the other August 12h 1s7e
bearing interest at ten per cent. per
should he mentioned that when the loan from the German
Bank fell due, there money the Treasury
it, the time extended for payment, seventh
day of September 1878, of $5 $50 was
made by that bank to the State.
All of the above mentioned loans have been paid except
last loan of 5000 900, negotiated through said
Whitaker.
When the General Assembly adjourned in March, 1877 the
second loan of $25OOoo obtained through Latham Alexander
& Co.. had been exhausted and that time until july
s7s there money the Treasury, with which pay
expenses except the temporary mentioned
Since October lst 1896 5000 in State scrip been
funded in bonds -.a.- .tf.-fe
BY reference the report of the Treasurer seen
that the volume of State scrip has greatly diminished
though owing the reduction of made by
erl Assembly it will not be absorbed until later period
that contemplated by the Board the time that
was prepared T# F.
Within the period covered by this report Messrs John D.
Adams and j. E. Redfeld proposition for the settle
of the State debt which has already public
and which contingent its approval by majority
L ,
to Board fact that the holders of majority species
of State Hoord unable or
willing give assent to the proposition made and upon this
Messrs Adams and Redfed requested modification of the
terms first presented which request declined the
Board and the negotiation by it declared ended
Since that time further offer for settlement of the State
debt has been made by any one
The proposal of Adams Redfed action the Board
and all the correspondence the subject herewith
mitted.
The necessity of borrowing money for the payment
expenses caused by the issuing of State scrip receivable
for is certainly sagreeable 1t however, only
temporary If the State declines borrow, it will
pay for everything in scrip and scrip below par WILL
making all purchases have than the articles pur
chased worth in currency This will lead continual
of the volume of the scrip, ISSUE
and progressive depreciation. This will
the prosaion of the charitable and educational
the State Without saying anything about national examples
of which very admonory and pertinent may be
mentioned that this species of ancerng has been
of counties with unsatisfactory results As official
salaries be remarked that if there complaint
of the quality efficiency of officials, hardly be
peced that better class be had for less pay
clerks in the different departments be said that their
pay quite low that paid by private persons for
like If such clerks paid deprecated
paper will follow that this depreciation will into the
who will perform
and into the services which they will render There hardly
able and willing to labor for the State without
propooned degree to the value of that
labor.
is, however, hear said that if officials
paid in scrip deeply deprecaed the nominal