The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-06-02
The FINANCIAL QUESTION.

One of our contemporaries refreshes the
public with an anecdote of Mississippi flush
times illustrative of the idea that the city of
New Orleans ought not to do anything for the
redemption of its credit or its currency. The
eminently practical advice rendered by our
contemporary is to "let it sweat process
of severe inaction which it seems to consider
a panacea for all the financial ills which mu-
nicipal corporations are heir to. This per-
spiratory regimen may be very efficient on the
theory that the city of New Orleans does not,
and ought not to care snap of its municipal
fingers for its creditors; but the old way of
paying old debts which this regimen pre-
scribes has, hitherto not been regarded with
favor either by moralists or fnanciers. The
fact is undeniable that the city owes four mil
lion dollars, or Whereabouts, to the holders of
the city notes, and, both in law and morals,
the holders of those notes have a right
to demand payment. The city has
no right to institute an inquiry as to the
financial status of the persons who hold its
obligations. 1t is no valid, or reputable de-
tense against a suit on promissory note that
the owner has purchased it on speculation,
and can afford to wait for his money. 1t
would be disgrace to the city of New Orleans
to make such an excuse for refusing to set
tie with her creditors. 1t would not only in
jure, but absolutely destroy her credit. No
body would pay cent for the bond of
city which had quietly informed her creditors,
during this hot summer weather, that they
might "sweat" for their money. 1t is the
duty of our city government to meet this
question, not with supercilious Indifference,
but, at least, with an honest intention to do
| justice to the people upon whom she has lite
rally forced her currency 1t is no
crime not to be able to pay a debt;
but it is a crime and a disgrace to de-
cline making an effort to pay. Just as
long as the city money remains in its present
situation-no attempt made to redeem or
convert it-no steps taken to satisfy its hold
ers that their just demands will finally be
met, the finances of the city will be involved
in embarrassments. The only resort, at last,
will be an excessive and onerous taxation,
which will burden our renascent industry,
and cripple our energies. New Orleans is in
no condition now to bear heavy increase of
taxation. What we require is severe economy
in the management of our finances retrench-
ment in every department of our municipal
| government, and q cessation of unnecessary
expenditure. In ordinary times we should
not feel this necessity. The fact that
we feel it so keenly now arises from
1 A
to increase our taxes is simply a propo-
sal to fetter our own limbs Just at the
time when they most require entire freedom
from constraint. It may seem a very short
and easy way of settling difficult question,
to meet every proposition with the advice to
"let it sweat" but this contumelious treat
men of the city's creditors must absolutely
destroy the city's credit, and finally render
any scheme of extrication, except direct and
heavy taxation, entirely Improbable.
Our contemporary takes occasion, whilst
recommending the perspiratory process to
especial favor, to make an assault on the plan
Of Mr.. Bernard Avegno, which it, evidently,
does not understand. AS that plan will,
probably, come up for consideration tonight
and as it has been in some respects modified
we may, properly again refer to its main fea'
lures. The proposition made by Mr.. Bernard
Avegno to the city is, simply, to assume the
extinguishment of the currency debt. Il
that debt were funded in ten-year bonds
bearing 730 per cent interest per annum
the interest account, in ten years, woulC
amount to So 800 900, and the capital woulC
remain to be provided for. In other words
: to pay the whole, principal and interest
would require $6,920, 000 Mr.. Avegno pro
poses to assume the liability for the sum c
S6,OOO,OOO, payable in monthly installment
of $4,000. These monthly payment
are to be devoted to the payment of the in
terest-such interest being payable monthly
on 100, 600 warrants, of $40 each, to be issue
8 in exchange for city money; and of 500 WA
rants per month-the warrants re1eemabl
monthly being ascertained by lot. In retur
Mr. Avegno asks the privilege of sellin
90, 600 chances in these monthly drawing
the profits on which are to accrue, in stipT
lated proportions, to him and to the city.
: is to be borne in mind that of the number
drawn in each month Ale 6-st-1aT S.-.
9 tied to premiums, or prizes, amounting,
tie aggregate to $50, 900, and these premium
Mr.. Avegno agrees to pay. Thus the eli
will save, in the extinguishment of its Gu
; rency debt, nearly a million dollars, and WI
share, besides, in the profits of the sale
the So coo supplemental numbers. No pla
: at once so simple, so feasible, SO practical ar
g so eficacious as this, has yet been presente
: or is likely to be presented hereafter.
: Buffalo had a singular storm. last Wednesda
:, during which FIVE houses and three telegraph st
~ tioDa were slruck nv lightning. A woman had