The Russellville Democrat. [volume] (Russellville, Ark.) 1875-1898, 1885-02-19
TMorrilton Headlight.

The HolfoId, Railroad Aid and
Leve bonds having been gotten rid
of, what is known as The state debt
proper will come IN for consldera
tion, and, from present indications,
will be the oil absorbing topic in
state politics for the next two years
Having learned a lesson in repndi
alton, Ivy the Fishback amendment.
there will be a strong tendency to
cut down on the balance of the debt,
if not to totally obliLerate il bya con
stitutlonal provision. There are now
three propositions before the legisla-
ture on the settlement OF the debt.
One by Mr.. Fishback, which re-
quires the governor to fund that
part Of the state debt consisting OF
bonds issued under the act approved
April 6, 1869, except those numbered
from 49l TO 1869, inclusive, being
the funding bonds delivered to f.
W. Caper, and known as the Holford
bonds, and all other unredeemed
bonds OF the state, issued TO the
Real Estate bank and State banks.
except those held by the United
States government, by issuing new
bonds o. the state. 1t is proposed
that the new bonds Shall be for ST.
600 each, payable twenty years after
date, but reserving to the state the
privilege of paving them at any
time after five years from date. The
bonds will have coupons for the
amount of interest payable semi an
nually. The bill also provides that
the proceeds of all mortgages, notes.
bills and other securities in posses
sion of the state obtained as security
for the bonds issued To the Real rs
tate Bank and the state banks, and
all the proceeds of forfeited lands
shall be set apart Tor sinking fund
for the pay ment of the principal.
Another, by Mr.. Thornburg, which
recognizes as just 81, l 80, 600 Of prin-
cipal and more than that much in
terest. This does not include $50
one thousand dollar bonds in the
hands of the United States govern
ment, which are recognized as just,
but left to settlement between the
| United States government and the
state government as both owe the
other.
For this $1,155,000 the bill pro
poses to issue new 80 year bonds
bearing 5 per cent. interest, redeem
able at the option OF the state after
years.
This will pay the creditors about
40 cents on the dollar of prlncipa
and interest.
A one mill tax Will pay the inter
est on the new bonds and provide ;
sinking fund of about twenty thous
and dollars year with which t.
take up the bonds.
The third is by Mr.. Carl Lee, o
Prairie, which recognizes the whole
debt rs just, but the bill simply pro
vides that a tax shall be levied t.
create a sinking fund and whenever
the state gets 100000 Of this funt
on hand, she shall 60 into the mar
kets of the world and buy up all bel
bonds she can get for the 100000
The Headlight has not giyer
thought and investigation enough tt
take any positive position en- the
question. III we owe the debt We
ought to make provisions to pay II
The debt now is, principal $4,000,
600, interest 100000, or $1,000,
600 in all. To fund this dollar fol
dollar would be unjust to the state
besides it Is charged that the gross
est frauds were perpetrated upon the
state in these bonds, both by the
Real Estate bank and the state bank
There is also another feature: the
bonds were funded, principal and
interest in 1869 and 1879 and thus
the interest has been compounded
and now to so over this same pro
cess again would be compromising it
a second time.
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