TWENTY-NINTH CONGRESS, 1845-47. ^53 



this subject. This bill was entirely different from any that 

 had been reported heretofore. The chairman had done him 

 the honor to refer to his (Mr. Adams') former views on this 

 subject, but did not propose to carry them out. It was im- 

 portant to the argument to consider how the fund was 

 expended. He admitted that at the time when the fund 

 was invested in Arkansas stocks, those stocks were at par, 

 as were all the State stocks. The banks afterwards sus- 

 pended, and not only the Arkansas stocks, but all the State 

 stocks depreciated. The interest on these bonds was not 

 paid, and it was the same case with the bonds of other 

 States. He entertained and cherished the hope that, by 

 means of what he called moral suasion — by considera- 

 tions of justice between State and State, and man and 

 man — the people of Arkansas, having this subject presented 

 to them year after year by the President of the United 

 States, would, for the sake of their own honor and interests, 

 pa}- the debt. He had that faith. Mr. Adams went on to 

 explain the provisions of his substitute for the bill. He pro- 

 posed that no appropriation for the purposes of this institu- 

 tion should be made a tax on the people of the United 

 States. Should this be agreed to, and become a part of the 

 act, he believed that it would be more effectual in persuad- 

 ing the people of Arkansas to pay this money, than would 

 be the thunder of the line-of-battle ships with which we 

 have been lately threatened in the British Parliament. No 

 application of force w^as proposed by him. He would speak 

 to them only as friends to friends. He would say to them, 

 we would not tax our own people to pay the sum for which 

 you are indebted — which you ought to pay — and which you 

 can pay almost without feeling it. 



Mr. Yell said, with the leave of the honorable gentle- 

 man, he would make some explanations. The remarks of 

 the gentleman left it to be understood that the interest of 

 the Arkansas bonds had not been paid, and that the State 

 was not disposed to pay its debts. He wished to let the 

 House know the state of this matter. Half a million of 

 State bonds were (in 1838) sold, and the proceeds invested 

 in the Real Estate Bank of Arkansas. The bonds invested 

 were to be paid in twenty-five years. To secure them, was 

 pledged the bank capital of a million and a half, and real 

 estate which had been valued at three millions. In addition 

 to this, the State took the bills receivable and the assets of 

 the bank. The State at length saw its error, and the whole 

 •country had opened its eyes to the evils of such a system. 

 The State acted as honestly as the nature of the case would 



