Year: 1878

islature. Yours truly,

 W. R. MILLER.

 This closes all correspondence on the subject, by which tue reader will see that the settlement as contem-l plated in the proposition of the 27th of June is at an end. I do not say who is blamsble for the failure; cer- tainly not the people, for the govern or told me on the eve Of my starting abroad, in November, that he had letters from majority of the Mem bers of both Houses of the General Assembly, favoring the settlement, and that as soon as we got majori- ty of each class of bonds he would call the Legislature in extra session to considerit. We have never found single bondholder who did not agree to tho settlement, except Hen " $. Holford, and, as 1 said in my letter of the 11th of January, to the Governor, the Holford debt is not the same character of bond as either of the other issues, and it is my opinion that they could and ought to be settled separately and distinctly from the others. The Finance Board is composed of men for whom l entertain the greatest respect, both personally and politically, but 1 differ widely with them in this matter, and 1 have no doubt they will all live to regret their action in not calling the Legislature, or rather their non ac- tion. It is this very "do nothing policy that has retarded the growth of the State since it has been State. Here we have an opportunity to wipe out about three million dollars of debt, funded and unfunded lives and sizes, that is conceded just, nearly three millions of levee bonds, that are NOW believed to be legal, and nearly eight millions railroad aid bonds that have been decided an illegal issue, but which, of course, it is desirable to get in and have can celled, since it would cost nothing to do so. All these three issues of bonds could now be settled for about three millions dollars ($3,000,000) of new bonds, the interest on which would only be ? per cent for the first year, 3 per cent for second year, 4 per cent for third year, and 6 per cent thereafter. And it should be borne in mind that if the Lcgisla- ture were now called, and should ratify the proposed settlement, it is not likely that more than $2,0o0,000 of bonds would be issued during the first year, and a restoration of the tax to what it was when the last Legislature reduced it, would fur nish a sufficient revenue to pay the interest and support the State Coy ernment.

 The objections raised by some of the State press to issuing bonds when only half of the whole are pre- sented, on the ground that the others might not come into 1t, and thus leave the debts still unsettled, is not well founded, since every holder who has been found, except the Holfords, desires a settlement on the proposed plan, and it is not likely that others would decline.

 No newspaper in the State ever advocated reduction h the taxes before or during the sitting of the last Legislature, and l have never heard any one favor it since, and I take it for granted the people were not expecting it, nor did they desire it; at least they would prefer to con tinue paying the same taxes they were paying before the reduction if, by doing so, they could wipe out the kebt above referred to, and put the State in such condition as to invite immigrants who have means. Such men are not likely to come in to help pay large debt they had no hand in making, The immigration we are now getting is not, as general thing, composed of men of capital. They have muscle, which is equally desirable, but we wrnt both. Nei. ther can prosper without the other, and settlement on the basis pro- posed would have left the debt so small that no man coming to settle among us would have objected to bear his share of so small burden.

 It is but just to the bondholders to say that they have without an exception, save Henry $. Holford, shown disposition to accept the terms of compromise sanctioned by the Finance Board.

 The finance question, which has been the all-absorbiDg subject Tn Arkansas for the last five or six months, IS now ended, at least so far as am concerned, and although not successful l do not regret the part I have taken in trying to bring about a settlement which would have re- dounded to our credit as people, satisfactory to all the bondholders (except II. $. Holford), and within our ability to pay the interest with out being the least oppressive to any taxpayer.

 If q settlement is ever made with our creditors It will be brought about by efforts such as we have made to effect 1t; and whatever may be said 6f the failure of the plan, it is safe to say that more is now known as Co !