The Forrest City times., 1910-09-02

people of this state requiring the most serious thought and attention from every one that has the good of his country at heart, one which justities the writing of these lines for the calm and dispassionate consideration of my countrymen.
 MUNICIPAL BONDS.
 It will be remembered that some years ago proposed amendment to the state constitution was submitted to the voters of this state. the object of which was to permit counties and towns to borrow money for the pur- pose of making public improvements, and to authorize them to issue negoti- able bonds for their payment. What ever anyone may think of financial ex- periments of that kind, it must be conceded that opposition to this measure had substantial basis that was well worthy of serious considera- ton, The frauds committed under similar schemes in other states forms a very dark chapter in American his tory. In the Northwestern states and Tn Kansas and Missouri these frauds assumed enormous dimensions.
 But We have had similar experience nearer home in the organization of the State bank and the Real Estate bank in 1888. Then, as now, it was vocifer- ouSly announced that these schemes would be of infinite profit 10 the state For the success of this scheme the state lent to the banks its bonds to ths amount of three millions of dol lars. The state at the time of the is sue of the bonds, was but very sparse ly settled and had no more need of banks than it had of flying machines. But the promoters succeeded in carry ing through their scheme by tlorid re- presentations of the fabulous benefits to be derived from such institutions. described in the real estate agency style, and absolutely essential to any real progress, so that it was not long before the demagogues all over the state were bowling for banks, just as hungry wolves howl for food They succeeded in getting the legislature to charter the banks and-what was more mportant-to issue the bonds. The banks which, as foretold, were to enrich the state and to relieve the in- habitantS from the burden of taxation, never paid even running expenses. The debts created by these bonds weighed on the state like nightmare for many years; and the state not only had to pay it off, but also to pay all the debts created by the State bank, of which there was also liberal sup ply. In the meantime the money thus raised by the sale of the bonds went into private pockets.
 During our late carpetbag govern mentS there was carnival of bond is sues for improvements of all sorts, leyees, drains, courthouses, jails, rail- roads, ,etc. ,ad libitum. So anxious were the manipulators of these schemes to realize on them that in passing the acts in which they were embodied they neglected to read the constitution which they had recently themselves created and adopted; one clause of which required that the ayes and noes on vote on all the bills lending the legislative journal. In the bills pro- yiding for the levee bonds this man. date was diSregarded. Another clause of the same constitution provided leg islative bills should not go into effect until 20 days after their passage. This clause was overlooked in passing the act providing for the issue of rail- road bonds, which required an election to be held on date before the law by it's terms went into effect. On these grounds some millions of dollars of bonds issued during the recOnstruc- tion period were held by the courts to be void even in the hands of innocent purchasers Had it not been for these fragrant violations of the constitution of seeming to be almost provi- dential the state would have been rendered impotent for many purposes of good for century by our over whelming public debt got up notorious ly in the interests of private persons.
 In view of this history combined with many others of like character, the constitutional convention of 1874 included in our present constitution the clause forbidding the issue of in terest bearing municipal bonds. TC this provision strenuous objection has been made of late years by many per sons, many of whom honestly believed that the issue of municipal bonds fol public improvements is wise, prudent and expedient, while others desire