The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1898-05-06

States Dates Back to 1888.
The Arkansas debt settlement bill
passed both houses of congress with
the Meikaljohn amendment and is now
a law.
Under the terms of the contract it is
provided that upon the payment by the
state of Arkansas into the treasury of
the United States of the sum of S5T2
she shall receive from the United States
government the surrender and cancel
lation of state bonds, coupons and in
terest obligations (some of which have
been running 60 years., aggregating at
this date about $2,640, 900, leaving in
the hands of the United States sl6O, 900
of the bond issue of 1874, which, under
the contract, the state agrees to pay in
the year 1900
1t should be understood that the pay
ment. of the s572 secures the release,
surrender and cancellation of all the
states indebetednesst to the government
ts2, 800, ,000), save and excepting s16O, 900
before referred to, which natures in
1900, and which constitutes the only
obligation then due the United States.
The claim of the United States dates
back to the year 1888, and is for money
borrowed, and interest. For upwards
OF % years the state officials and our
senators and representatives in con-
gress have been trying to get passed
through congress some measure author
izing settlement between the state
and the government, but up to the
present time no compromise bill could
be agreed upon which could be passed
through both houses.
One of the first bills introduced into
congress was by Senator Garland in
the year 1876 (22 years ago., and con-
tinuously since that date and during
all these years our representatives have
kept the subject before the depart
ments in Washington and the congress
of the United States, urging and de-
manding action upon this very import
ant measure.
Quoting from the recent speech of
Senator Berry upon this subject:
THE controversy has existed for 50 years
This settlement will quiet the title OF thousands
OF our citizens to their homes. 1t relieves the
state from debt amounting. principal and in
eNiNN'. - Nfu pVuut tuu iutcEcSt W lilly Q3tc, OF
about S2 800 000."
II would greatly have preferred that the
house OF representatives should have passed
the senate bill without amendment, but the
effort was made both in tho last congress and
In this to pass the senate bill, and have be-
come firmly convinced that 1t is absolutely i'm
possible to have the senate bill even consid-
cred by the house OF representatives, and to
have 1t passed there without amendment The
delegation from the state have made every pos
sble effort to pass the bill without the amend
ment, and they agree with me that we must
take the amendment or have no bill. And
they agree with me also that 1t Is best for the
state that this controversy should be Sc tied"
.. want to state further that the ame udment
which has been proposed by the house of repre-
sentatives was during the winter OF 1897 pre-
sented to the legislature Of the state OF Ar
kansas. After contest a majority OF that
legislature agreed to accept the amendment.
which is now proposed by the house OF repre-
sentatives."
Mr.. McRea, in speech in the house
of representatives April IL, upon the
subject of the claims of the United
States, said:
'"The United States invested 1886, 900 of the
Smithsonian fund and 800 900 of the Chickasaw
fund in these bonds. The United States also
invested 5000 off the Chickasaw orphan fund
In per cent bonds. AS OF the date OF Janu-
ary l. 1874. the 800 900 OF Chickasaw bonds and
interest were funded into ss52 600 new per
cent bonds, due January 1. 1900. The principal
OF all the bonds amounts to 1898 600 and In the
pending compromise the state is charged with
that, and in addition the interest thereon to the
time OF maturity, which Is SsiS SOB making in
all the sum of 81 i,6ll, 1903 81. No interest Is
charged against the state after the maturity Of
the bonds, although upon their face they bear
interest until the payment OF the principal IL
In he nd
amount is nearly 100000
From time to time. as the state defaulted In
the paymants. congress appropriated money to
protect the trust funds invested in the bonds
and the United States now own in their own
right all OF the bonds and the Smithsonian and
Indian funds have nothing TO do with them
When the bonds matured in 1881 the state had
seeded from the Union and was engaged In
an effort to sustain the Confederacy The
whole country was then In a state OF cruel war
which, after four years. left the state peopled
principally with widows and orphans. aged
men and manned soldiers, without any organ
lied state government. her relations to the
general government uncertain and a new and
ignorant citizenship to deal with, and aliens ~
rulers.
with this condition OF affairs it is unneces-
sary for me to say that nothing was or could be
done to pay the debt to the United States.
From then until now the people who survived
the wreck and ruin OF that sad conflict OF the
sections and the more disastrous effects OF the
reconstruction period that followed It, have
labored with all their energies to rebuilc their
lost fortunes, but the high taxes hard times
floods and droughts have made 1t almost i'm
possible to do more than support the state
government. With the present low price of
cotton. our great farm product the probable
tiles OF the state ever being able to pay the
principal and interest OF these real estate
bonds in money are very slight, even IL willing
to do so.
II do not hesitate to say that do not believe
she can pay the full amount OF them by taxa
tion. and for that reason have sought TO effect
a compromise. With these bonds settled the
state will be In u condition to pay or adjust
upon honorable terms the remainder OF her
debt The state is improving In many ways.
and with this menace removed, l shall expect
such an influx OF immigration and eapiral NJ