The log cabin Democrat., 1915-01-04
DAILY EDITION.
4 STATE BOND ISSUE.

In his biennial report just made public, Secretary Of State Earle w. Hodges urges the issuance of a mil lion dollars in bonds to pay off the present deficit in the states general revenue. That some such radical step must be taken by the next legis- lature would seem to be inevitable.
 1t is difficult to imagine the conse- quences if the United States govern ment should for one day or even one hour what the Arkansas state govern ment has been doing for the past two or three years-refuse to honor it's paper when presented to the treasury for payment. The entire business of the nation would instantly be demor- alized and panic such as the world has never witnessed would follow.
 Yet it is not less dishonorable for the state of Arkansas than for the United States government to say to it's creditors that its treasury is empty and that it's warrants could not be re- deemed, and force the sale of the warrants at such discount as brokers and bankers desire to exact.
 Arkansas now occupies the dis creditable attitude of saying to other creditors: q cannot pay you and you cannot sue me. You must accept for your debts my due bills, which bear no interest, and get money on them the best way you can." An individual or corporation taking the same posi- tion would immediately be forced out of business.
 The reason for the bankruptcy of the state is exactly tEe same as that which produces bankruptcy of the in dividual-greater expenditures than receipts. A decade or so ago the state government of Arkansas was a rath- CT simple affair. It consisted official ly of a governor, secretary, auditor, treasurer, attorney general, supreme court and legislature. The charitable institutions were inexpensive and made no pretense of meeting the de- mands made upon them. The states educational institutions were limited to the Arkansas lndustial Univers- ity," weak and unimportant school The state has grown rapidly and it has become necessary to add largely to the expense of all the old depart ments and to create many new depart ments and commissions in the official government. The charitable institu- tions have been greatly enlarged and several new ones added. Along edu- cational lines tremendous advances , have been made and the expense greatly increases. The university has been made into great institution, normal school and four agricultural schools have been added, and large sums have been expended by the state department of education. Yet the state has attempted to do all these things upon rate of taxation as low as and even lower than prevailed be- fore these expenses were incurred.
 There are just two things the state can do-abandon these new institu- tions, departments and commissions, or get more money. The four agri- cultural schools have alone cost as much since their establishment as is needed to lift the states debt. Yet we do not believe that anyone sincere ly desires to close up these or any other of the states worthy institu- tions. Every one of them will bring back to the people of the state-if not fO tho etata traa -poapu tinac their cost in increased culture, health and wealth.
 While probably not the most popu- lar plan, the proposed bond issue is doubtless the most feasible plan for relieving the present unfortunate con- ditions. If the Turner-J acobson bill had been adopted four years ago there would have been money in the