Year: 1879

solution keeps our wise men con stantly in great stew how to meet it, and how to keep the state govern ment from running astrand. The trouble and worry of providing for the expences of one administration is hardly over, until it becomes nec- essary to provide for another one This is the way it has been, and the way it viii be, as long as we pursue the policy which has been followed up for the past late years.

 We have the same old knotty problem before the present session of the Legislature, and we see an effort being made to revive the h- nance board and again borrow mon- ey.

 We have given this matter some thought and have arrived at the foi' lowing conclusion:

 1st. The policy which has been pursued is not good one; at least, it is not the best one which cold be adopted and pursued. The relief it brings is too short-hfed and brief, and every two years we are left in the same pitlable condition and have the same disturbing question recurring before our Legislature. The relief obtained is merely tempo rary and only delays the evil day. That is our first proposition,

 2d We do not believe it will do to return to the Scrip system. The depreciation which it would cause in the value of scrips would be a heavier loss to the people than to adopt some other policy. That 1t would cause depreciation in the value of scrip is self evident; and whatever depreciation exists in our scrip is, of course, loss to the peo- pie; for the people become the pay masters for the State and are the ultimate losers. We therefore op. pose the scrip system.

 3d. The State should negotiate for loan sufficient to run the State Government for two years, eff mon ey must be borrowed) due at date further in the future; say due in ten or twenty years. This would prevent the recurrence of this troub- le at every session of our legislature. As collateral security for the pay ment of this loan, when due, the State should put up such security as wonld induce men with money to give the accommodation without asking an exorbitant price for the risk they take. The collateral should be such as to remove all doubt of risk, and we should then pay only the actual worth of money. We see every day millions of dollars invested in the governments four per cent bonds. This indicates what money can be obtained for n. bo,, tl,, ;netr,,,,op+ ;s eofo IF tho State of Arkansas will make a loan to her unquestionably safe then she ought to borrow the money she needs for administering the State government for a term of two years, for any length of time she may risk to retain the loau-say not over ten or twenty years-at something near the rate of interest drawn by the general government bonds;-say at five and a-half or six per cent at the out side figures.

 After this loan is secured the leg islature should provide that a suffi, cient currency tax shall be levied and collected each year to meet the interest promply, and to create a sinking fund which at the expiration of the loan will be sufficient to pay back the money and leave a curren- cy fund in the treasury sufficient to pay our current expences without any further loans.

 This could be done without any burdensome increase in our taxation; and then, instead of being just one year behind, as we are kept under the present system, we would be ful. ly up and have a clean balance sheet at the commencement of each new administration, showing no balance due and unpaid for the preceding administration. By that time the increased value of our taxable prop erty would enable us to meet current expenees without any heavy taxa tion.

 Under the present system we will always keep behind and the same