The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-10-18


suppose, that that would ever be the intention Of
the Democratic party.
Mr.. Ogden-Mr. President believe, after can.
vsssing the sentiment of the Senate, that the ma
jorty are In favor postponing this bill until 6atur
dsy, immediately after reading the minutes
therefore move that 1t be postponed until that
day.
Mr.. witteenstein-T move that il be the special
Mr.. Ogden-I believe the majority are in favor
Of postponing ii until Saturday. hope the sena-
tor will Withdraw his motion.
The motion to make the bill the special order
for Saturday was pending, when, on motion Of Nc.
Pipcbback, the Senate went into executive SEES
sion, and soon after adjourned.
House Or Repre- .eatasives. D.
Immediately after meeting, the House received
the following message from the governor, oon-
for the issuance by the city Of 5000 600 worth Of
bonds:
My first objection to the bill is that the city may
be forced to sacrifice one million dollars In six per
cent gold interest bearing bonds, In order 20 re.
deem the city money, which 10 not nov in circu-
lation, but held by spectators. There Is no
reason why these bonds should be disposed Of at
less than par. for there is not holder of city
these bonds at par. thus saving the city one mil
lion dollars, which added to the onehslf per cent.
given to the financial agent for mis- services would
be total saving to the city Of one million twenty
Schoolgirls city of New Orleans cannot
afford to pay interest in gold. This bill provides
for the payment of three hundred thousand dollars
In gold annually. The city has gold revenue
tsins to meet the interest on these bonds. Gold
lie selling at q lower rate to-day than 1t has for
months past, and it may be twenty per cent
higher two months hence. There is no certainty
as to the price OF coin, so that the city may be
able to buy at lss to-day and thus pay for interest
four hundred and fourteen thousand dollars in
currency, the present equivalent Of three hundred
thousand dollars in gold; but next year specie
may be twenty per cent. higher and the city COM
PEELED to exhaust the six hundred thousand dol
lars Of taxes in order to meet the annual interest,"
leaving no fund with which to redeem the bonds
twenty years hence. The bonds should bear
interest IN the currency of the country, then the
property of the city would not be subjected to
such enormous taxation. and the city government
would always know the amount to set aside with
which to meet the interest on the bonds.
ThrdIy-The second section of the bill author
ICES the mayor and the financial agent, In the
event the bonds cannot be sold at par, to nego
tiaie loan. II Is Objectionable for the reason
that it does not limit the loan in amount, and does
not indicate the security to be given by the city
nor the length of time for which the loan may be
effected. If the financial agent fails to sell the
bonds at not less than eighty cents on the dollar
what is there in this bill to prevent him from bor
rowing two or three millions Of money and sledg-
irg the whole issue of bonds as collateral to be
paid In ninety or one hundred and twenty days.
This might be, in the present Strengthened condi-
tion of the city government considered a good ar
raDgement for the time being, but when we re-
member that there Is nearly four millions of this
money in the hands Of spectators, and that this
bill does not prohibit its receipt for taxes and
other dues to the city, who say but that these
BONDS may, by sale under this pledge, be sscri.
feed for less than fifty cents on the dollar. q
This authority TO negotiate loan should be
hedged in so by restrictions that the city may not
q NJ oart into de- -
only two gentlemen, however honest and
capable anl,i,v Thar. ), TO mu., ,o. ,.,,...,
upon the mayor In the appointing of the financial
agent and the amount of bond furnished by the
latter should be rather five millions than fifty
thousand dollars. There should either be no &C.
curly exacted at all, and the whole matter
intrusted to the honor OF the officer, or q bond
should be exscted sufficiently large to secure the
Flfthly-The bill does not give immediate re-
lief. 1t will be, in my judgment, impossible to
sell at this time these bonds for eighty cents on
the dollar. The best securities of the State, with
only Sc SOC, goo of debt and $240 900 600 Of taxa
Bile property. cannot be sold for sixty cents on the
dollar. Such being the case. Is it to be assumed
that these bonds. IS. 900 900 in amount, can be
over $l4,O00,Oo0. and the taxable property less
by over 500 goo 900 than that of the States What
will be the consequence then? Either the
mayor and financial agent will effect loan, and
bypothecate the bonds at the risk of the most
ruinous sacrifice, or the agent will be forced to
exchange the bonds at twenty per cent discount
for city money at par, which the holders have
purchased at from thirty to fifty per cent. dis
unit, which will, whether sold for greenbscks at
eighty cents. or exchanged for city money, be
giving five millions of gold interest bearing bonds
for four millions of city money, besides loss of
SO 900, which is to be paid the financial agent
The provisions OF this bill are neither demanded
oy necessity nor by any just conviction of duty
very little, II any, is In the hands Of the peo-
pie; 1t Is all held by SPECTATORS, who have taken
i at ruinous rates Of discount, and who were
ully apprised Of the doubtful legality of the
ssue. They knew that there was no authority ia
The charter of the city for 1t, and that it was
1nly tolerated for the reason that it gave the peo.
pie currency when they had none. and supplied
The deficiency In the treasury arising from unpaid
'axes. They knew that on the twentieth of No !
Eember, 1867, the then mayor denounced 81 1884,
l30 OF 1t as having been issued by "city officials
frauduenty and without color of |
aw or right" With this evidence before them,
he holders cannot complain at some delay of the |
lily in redeeming this money, which has cost the
ak payers double its value already in the |
increased prices fixed upon everything bought |
BY, or labor done for, the city.
/ advocate the redemption of this money, and |
iesire 1t to be effected at an early day; but /
,sDnot give my assent to a bill which fixes upon |
he city over million more debt than is neces- |
AIRY, and obges 1t to payson that debt 81, 900 900
interest 10 gold, or, at the present rate of gold
. ESQ OoO in currency, and total sum of $l3,- |
$50 600 IN twenty years.
In my judgment the remedy is simple and within /
be control Of the Legislature.
First-The city should be authorized to issue
Is bonds bearing not more than six per cent. in |
crest In currency, payable in four or ten years,
II the option of the city, and exchanged at par
or city money. tax Of one-third of one per /
'ent should be collected to meet the interest and
upply fund to pay the principal
secondly-One-sixth of the gross receipts OF |
be city treasury should be set aside each month
md applied to the redemption of the notes Of
hose who prefer TO wait than to exchange for
he bonds Of the city as above indicated.
Thirdy-The treasurer should be prohibited
rom paying out any mere Of the city notes and
hose now In the treasury should be destroyed and
nv further issue prohibited.
Fourtbly-Tbe law should provide that United
states currency only should be received for taxes
md other obligations due the city.
TO the last proposition il may be said that the
'ity cannot refuse to receive its notes for debts
lue II, but that question involves the legality of
he issue in the first place. and the right of the
state to intervene to protect its people from the
buses OF its creature the corporation Of the city
If New Orleans.
With great Difference for the opinion OF the