Mr Reed was accused of destroying a different Ten Commandments monument in Oklahoma three years ago, media reports say.
He was diagnosed with a schizo-affective disorder (a mental health condition) after that incident but was released from hospital in January 2015 as part of an agreement with the Oklahoma County district attorney's office in which he pledged to continue receiving treatment and therapy, Tulsa World reported at the time.
The initiative to build the statue was led by Arkansas Senator Jason Rapert, who sponsored a 2015 law to display it on state grounds.
Mr Rapert said it "honoured the historical moral foundation of the law".
But opponents including the American Civil Liberties Union said that its appearance amounted to "an unconstitutional endorsement of religion" - they threatened to take legal action to have it taken down.
The statue was financed by more than $26,000 in private donations, local media reported.
When a religion is good, I conceive it will support itself; and when it does not support itself, and God does not take care to support it so that its professors are obliged to call for help of the civil power, 'tis a sign, I apprehend, of its being a bad one.
Do you tell me that the Bible is against our rights? Then I say that our claims do not rest upon a book written no one knows when, or by whom. Do you tell me what Paul or Peter says on the subject? Then again I reply that our claims do not rest on the opinions of any one, not even on those of Paul and Peter ... Books and opinions, no matter from whom they came, if they are in opposition to human to rights, are nothing but dead letters.
We owe a faith to the world and to ourselves. We owe a grace and gratitude to things that have brought us here. But I think it's a very important to say, 'Well, for everything, God has a plan.' That's like an excuse. Maybe the real faithful act is to commit to something, to take action, as opposed to saying, 'Well, everything is in the hand of God.'"