The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-06-27
IMPORTANT FROM NEW ORLEANS.

Alleged Fraudulent Issue OF Nearly
s4,OOO,OOO OF City Notes by the city
Yreasurer and Comptroller The
Mayors Opinion ON the Question of
Reputation.
NEW ORLEANS, June 26.-There is considerable
sensation in business circles here to-day in con-
sequence of an exposure by Mayor Heath, In
his message to the Common Council yesterday,
of an alleged fraudulent issue, without authori-
zation, of city notes to the amount of 81, ,232,772
since the date of August l, 1866, by Joseph Her
nandez, City Treasurer, and P. G. Mahan, Comp
troller. Two issues one of $600,00 and one Of
$400, 900, together with an over-issue of new
notes in place of worn-out currency to the
amount of S232, ,732, appear on the exhibits OF
the City Treasurer, and 1t is claimed this even
ing, on competent authority, that the over
issues will amount in total to the enormous
figure of SO, ,742, ,936 The matter is under inves-
ugation by the Common Council, and will most
likely end in the reputation by the city of the
illegal issue, and the removal of the officers
engaged in it.
The following is the opinion of Mayor Heath
upon the question OF repudiation:-"With this
exceedingly large volume of paper money
thrown upon the market, in addition to that
already issued by the city, it is not hard to
account for the great depreciation which has
taken place in the value of city paper, and can
not help shaking the confidence of the public in
it. If IL was sanctioned officially or otherwise
their powers, and must be viewed as equally
culpable with the officers already named, and l
look to the Council to make immediate eXami.
nation of this matter, and to take speedy mea-
sures for the removal of the parties guilty of
perpetrating this fraud upon the corporation
and the community. For the further and full
protection OF the Treasury of this city, it is also
necessary that all officers of the city should
be instructed not to receive any of the money
in question in payment of sums due the
city. The same having been issued without
authority, and by irresponsible persons, is
of no value in law, and the city can never
legally be made liable for it. No authority
having ever been vested in the present Trea-
surer and Comptroller to issue any new notes of
this city, these illegal notes can be readily dis
tlnguished by the signatures of themselves or
their deputies. 1t is to my personal knowledge
that, besides the large amount OF nearly mil
lion and quarter of dollars already illegally
issued the Treasurer and Comptroller are at the
present time engaged in making more of this
money; and even now we have nothing to
guide us as TO the amount actually put into cir
culation, except the statements of the Treasurer
himself, and 1t is also necessary that you should
take immediate steps to stop any further issue
OF new city notes."
The general opinion is that the Common
Council will vote to render legal the issues
already In existence, though their power to
legaliZe them is doubtful. In the meantime to-day
city notes have deprecated two.and-one-hal per
cent, and many parties refuse to take them at
all in payment in business transactions.