Year: 1860

tween Ine two policies, and 1t IS one when the common sense of the intelligent yeo- marry of the country can understand, is that Johnson proposes, in accordance with the Conway policy, endorsed unanimously by the late State convention, and therefore the acknowledged platform of the demo- cratic party, to pay fully and completely the liabilities of the State on account of the banks:

 First, By making the assets of the K. E.. Bank, in the shape of mortgaged lands, meet the indebtedness of that institution, by the most direct and approved legal pro- cedure known to the courts of the land, and freeing the State at once and forever from an onerous responsibility.

 Secondly, In regard to the State Bank, Col. Johnson shows in his very clear and able address, that the State withdrew from the vaults of the bank at various times sums of money, which, with interest, amount in the aggregate to six or seven hundred thousand dollars-sufficient if re- funded to the bank, to enable it to redeem all the bonds and coupons of the State now outstanding and unpaid, and free the-State from all indebtedness on account of the State Bank. Col. Johnson further shows that all this can be done under our present system of taxation in the course of four or five years at farthest. Gov. Conway's reason for vetoing the bill reducing the taxes, was that the State might be able to meet this liability. The good sense of the people will sustain him in this, and scorn the demagoguish idea of reducing the taxes now in order to make posterity pay debt of ten or fifteen millions, when we can settle it now at an expense of six or seven hundred thousand dollars under the present taxation. When this policy is carried out, the liabilities of the State removed, its credit fully restored by this honest and strait forward course. we will then be en- abled to give the most efficient aid to in- ternal improvements of all kinds.

 In regard to issuing at this stage of de- preciated credit, new bonds, Col. Johnson remarks:

 "While it is, evidently the interest of the State to aid the construction of railroads, very much question the propriety of issuing new bonds until the old ones are redeemed"

 "The bonds of the State would be worth very little in the market just now if indeed they could be disposed of at all. They would not be woIth exceeding fifty cents on the dollar, and at such discount, instead of furnishing assistance. the use of them would destroy any company in the world For instance to raise funds by of State bonds to build road costing $2,O00 .0OO, would require the sale of S4 ,0000 900 worth of bonds and the in terest this sum- at six per cent. would be S24O,- 900 per annum. Could any company afford to pay such an interest; interest in fact equal to l2 per cent. on the actual cash received for the bonds! think not, and were l a member of a railroad com pany certainly should vote to refuse any such aid aid that would certainly destroy the company entirely When the State of Arkansas is untram meled with debt-rich and prosperous as she then will be-the question of issuing bonds of the State to build railroads with, might with great propriety 

 such aid now would not only destroy the railroad company that received it, but would involve the State in a ruinous debt from which she would re- ceive no compensating benefit"

 On the other band we will let the Old Line Democrat state Judge Rector's policy giving him all the advantages of its partiality:

 aNow what Judge Rector proposes is simply to fund her liabilities on account of the debts of those two banks-that is, to collect them all together and place them in such a condition Co secure the ul- innate extinction of principal, with provision for the payment of annually accruing interests lie proposes 10 do this by simply calling in the old bonds rhich triH be sA0rfls due, and issuing new bonds covering the whole amount of principal and interest due, payable, say taceniy.'ce or tfy years affer daie.'

 a In support of this isolated proposition there are two good arguments; first, it will enable the State, 5y pfiaq ker tn posssss0a q ths R. E. Bank boHds to f0reolose the mort gages executed Co secure the payment of those bonds, and thus % wipe out that debt and secondly, t win stave of the payment Of the State Bank deht, which shortly falls due, Co period that will enable the State to discharge it without expressing the people, and thus relieve us of the nscessty which, under 'e'ov. Conways uoev, now star,s us in the face, of either resort

  DrersHf Aai r,padiatioa'''

 The reasons for this policy are eminently absurd. First. it is quite as possible to get possession of the R. l.. Bank bonds in or der to foreclose the mortgages, whether new bonds be issued as Judge Rector advises, or whether pro rata sum be exacted. and the debt immediately paid as Col. Johnson proposes. That reason is certainly as ap- plicable to one plan as to the other we have shown above that under the present system of taxation, the llabill- ties on account of the State Bank can be paid of in very few years, s,-the State freed from debt, and depressed credit, more onerous perhaps, than the debt itself, re- stored to a healthy and normal condition. The best and only way to accomplish the latter desideratum is to pay our debts hon. sstly, fairly and squarely, and not virtually repudiate them as the .torced postponement of Judge Rector would do.

 The entire scheme of Judge Rector re- ,embles very much the great South Sea ,ubble'' cn a small scale It is not quite IS practical and as well digested as the plan of the Real Estate Bank, for that was start d and kept in existence for few months oy the blind gropings of it's originators, put this attempt to enrich Me .Statc out of he debts ofMe State could not for single be put in execution. The veriest ' wool-hat'' democrat that blows the soil of Arkansas, will see the impracticability of this financial chimera. The bond holders will sheer at it, railroad companies will in dlgnantly spurn the cheat attempted to be put upon them, and the honest payers will scorn the virtual'repudiation to which 1t amounts as reflection upon their integ- Ilty, and an insult to their sense of honor. " How are the mighty fallenr' when their vaunted policy is exposed, and the shame less cheat, stripped of its verbal ornaments, is held up to the voters of Arkansas. Can three men be found in each county in the State, who will sustain Judge Rector on