Year: 1878

BARBARISM IN FINANCE


The Democrats of Arkansas held a cOnyen-
ton the other day at Little Rock, and passed


variety of high-aayored resolutions dealing


almost altogether with the questions of cur
rency and finance. Perhaps il is hardly nee
essary to say that the Arkansas Democracy is


an uncompromising foe to the tyranny OF
banks and bOndholdcrs. 1t IS remarkable
dspensaton of Providence that the Bourbon
States which are most in need OF credit arc


the most violently opposed to it, and that the
communities which can hardly get along
without borrowing are loudest in exclaim-
ing that base is the slave who pays.
The Arkansas Democrats wish to abolish banks,
to repeal the Resumption Act, TO stop funding,


and to set the Government paper mill run


ming, that it may turn out all the rag-mOney


the people want They wish to cease the en-
couragement Of manufactures; they wish to


take away from the besOtted subjects of


foreign powers the privilege Of lending
money to the free citizens of the United
States; they wish, in "a word, to keep


money ont of the country as far as posi-
BILE, and to expose those who have saved
apv TO special taxcs-demandng, as a


means of facilitating this policy that the
United States Courts shall be debarTed from


any interference with the sovereignty" of


Arkansas. And then they call upon the Gen


eral Government to build the Southern Pacific


Railroad, and to make a liberal appropriation
for the Mississippi leyees. This viii be par
ticularly interesting to the ingenious gentleman


in Congress who charged all the subsidiary


schemes of the South to the rapacity of North
en Republicans


The Arkansas Democrats, after this tempt
ing explanation Of their policy, invite I'M


migration from any and all quarters" And


it happens, oddly enough, that only few


DAYS before the meeting of the Convention
a striking illustration of the advantage
of settling in such higb-minded


community was given by Il decision of the
State Supreme Court on the validity of about
$4,000, 900 worth of levee bonds issued few
years ago by authority of the Legislature.
The Court declared the bonds worthless
on the ground that in the passing of
the act under which they were issued
the vote was not taken by yeas and


nays, as the Constitution requires. Thus,
by technical defect, of which the purchas-
ers of the bonds could have had no knowl-
edge, the whole loan is wiped out. Capitalists


at the North and elsewhere who advanced


their money on the faith of the State. lose


everything that they have invested, and Ar


kansas profits TO the extent Of $3,OOO,000 by
the mistakes of her own agents. The court,
which did not enter into the equities of the
case, may be presumed TO have decided ac


cordng to law. But if the bonds are really


defective through an nformality, there can be


no doubt as to the duty of the State of Ar
kansas. A supplementary act of the Legisa-
ture ought to repair the error without delay.
There is no other course possible in
community which values its good
name and respects the commandment


"Thou shalt not steal.' Does the Ar
kansas Democracy propose to be honestf Oh,


no. The idea Of such thing does not enter


the Democratic mind. The Little ROck Gazette
coOlly cOngratulates the people of Arkansas


upon ga decision which lifts a burden of


"nearly SO 900 900 from their shoulders" The
money is gone the bOndholders may whistle
for it.


In all Government loans the good faith of


the borrower is the principal security for re-


payment. Where that is wanting the amplest
pledges and the strictest observance of law
are Of no use. And it is chiefly in jealous
regard for commercial honor that the most
civilized and prosperous nations of the world


are distinguished in their financial dealings
from semi-barbarOus governments like Turkey
and Arkansas In all such inferieR~ countries
it is a subject Of congratulation when some


pretext is found to break a promise, to cheat
| a creditor, or to keep what does not be-
long TO them. Mankind takes these States
at the low valuation they set upon
themselves, and sooner or later makes


them pay in one way or another for every
piece of raseality by which they have lifted


ga burden from their shoulders" Arkansas is


not very important member of the American
Union but she has quite as much power to
disgrace us as if she were one of the foremost
of the States, and when she wrongs her
bondholders she impairs the credit of
the whole nation. Arkansas moreover is not


alone. The spirit which animated the Little
Rock Convention. and which prOvokes rejoic-
ings over the worthlessness of the bonds, just
as dishonest tradesman chuckles over his sue
cess in passing a counterfeit half dol
lar to an unsuspecting customer, is the
spirit which auimates nearly twO-thirds


of the Democratic party, and If the


Democrats obtain control of Congress it viii


show itself in the public acts of the


United States. When that hRppens our coun-