Without waiting for the state to redeem the loan, and in a breach of good faith the bonds were sold to James Holford, a banker in London, England, for $325,000.
[3] In the reconstruction era, the issue of refunding the bonds along with the infrastructure bills would be the centerpiece of Republican policy.
The Arkansas legislature passed laws to refund the bonds on April 6, 1869[4] with 30 years interest.
Afterward they were contested on the grounds of there being fraud and breach of faith in their sale by the trust company.
Governor Baxter's veto of a refunding bill that included the Holford bonds would tip off the Brooks-Baxter War in 1874.