Arkansas Debt Crisis

atomic number 18 Debt Crisis 2/26/2012 It is interesting to learn that the subject of atomic number 18 is the only state to have defaulted on ternary bonds. It is also interesting to note that this is not a wide known fact. It appears that the main reason for these defaults is the effects of trying to die to fast in an effort to achieve statehood and then in an effort to increase monies that the state needed to pay forth previous debts, as well as for the growth of the state. Statehood was move into. With a small population there was no instruction at that time that comme il faut taxes could be generated to support the of necessity of the state. Statehood was sought after for the wrong reasons…..to balance the states and to gain farmers stinting development benefits. Granted, once Statehood was granted there would be a need for banks. However, there should have been some precautions taken to differentiate that the banks were run in an honest direction. It would appear that if one was a director one could trace any amount of loans. No measures were put in place to make sure that write down put up for collateral was exactly as it was suppositional to be. Too much too fast, and no possible way to avoid was ahead for them. Practicing in illegal activities to make the books flavour good and doing business with crooks did not help the situation at all.

Unfortunately, the banks depended on the State of Arkansas to bail them out of the messes they managed to get into. It never occurred to them that the State of Arkansas did not have enough to pay the debts. Due to failure to pay on loans, Arkansas credit was not really good. It was difficult to gain livelihood for the railroads, however, Railroad Aid Bill of 1868 helped in financing the railroads. The biggest puzzle was that the State of Arkansas wasnt able to require very much in the way of collateral which left them emptied turn over when the railroad defaulted. Thus, a snowball effect that left Arkansas with no way to pay all their debts. With the Highway Debt crisis, once... If you insufficiency to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .