New Orleans Republican., 1868-10-17


inty as to the price of coin, so that the
city may be able to buy at 13s to-day q thus
pay for interest four hundred and fourteen
thousand dollars in currency the present
equivalent of three hundred thousand dol.
I rs in gold; but next year specie may be
twenty per cent higher and the city com
PEELED to exhaust the six hundred thousand
dollars of taxes in order to meet the an
nual 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 prop
erty of the city would not be subjected to
such enormous taxation, and the city gov.
| ernment would always know the amount to
| set aside with which to meet the interest on
| the bonds.
Thirdly-The second section of the bill
authorizes the Mayor and the financial
| ag mt, in the event the bonds can not be sold
| at par, to negotiate loan. 1t is objection
| able 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
a. not less than eighty cents on the
dollar, what is there in this bill to prevent
| him from borrowing two or three milliens
OF money and pledging the whole issue OF
bonds as collateral to be paid in ninety or
ole hundred and twenty days. This might
| the city government, considered good ar
rIpgement Tor the time being, but when we
remember that there is nearly four millions
| of this money in the hands of Spectators,
| and that this bill does not prohibit its re-
ceipt for taxes and other dues to the city,
who can say but that these bonds may, by
| lie under this pledge be sacrificed for less
than fifty cents on the dollar. r...
This authority to negotiate loan should
be hedged in so by restrictions that the city
may not be at the mercy of the opinions or
interests of only two gentlemen, however
honest and capable.
Fourthly-There is too much power con.
ferred 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 security eXacted at all,
aud the whole matter intrusted to the honor
o. the officer, or bond should be eXacted
sufficiently large to secure the city from loss.
Fifthly-The bill does not give immediate
r ,lief. 1t will be, in my judgment, impossi.
bic to sell at this time these bonds for eighty
cents on the dollar. The best securities OF
the State, with only Sc, 500, 900 of debt and
$40, 600, 900 of taxable property, can not be
sold tor sixty cents on the dollar. Such be-
ing the case, is it to be assumed that these
bonds, $1,000, 600 in amount, can be sold at
eighty cents when the debt of the city
is over Sl4, 200, 900, and the taxable property
less by over Sl00, 100000 than that Of the
State. What viii be the consequence of
then? Either the Mayor and financial agent
will effect loan and hypothecate 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 pur.
chased at from thirty to fifty per cent dis
count, which will, whether sold for green
backs at eighty cents, or exchanged tor city
money, be giving five millions of gold in
terest bearing bonds for four millions of
city money, besides loss Of $4,000, which
is to be paid the financial agent. The
provisions of this bill are neither
demanded by necessity nor by any Just
conviction o; duty to the holders Of city
money.
A very little, if any, is in the hands of the
people; it is all held by spectators, who
have taken it at ruinous rates of discount
and who were fully apprised of the doubt
full legality of the issue. They knew that
there was no authority in the charter of the
city for it, and that it was only tolerated for
the reason that it gave the people CurrGE-
cy when they had none, and supplied the
deficiency in the treasury arising from un-
paid taxes. They knew that on the twen-
tieth November 1867, the then H4yor de-
nounced 81 tG4, $50 oft as having been Issued
by city othGials clandes ineIy, fraudulent
ly and without color of law or right With
this evidence before them the holders can.
not complain at some delay Of the city il
redeeming this money, which has cost the
taxpayers double its value already in the
increased prices liked upon everything
bought by, or labor done for the city.
| advocate the redemption of this money
and desire it to be effected at an early day,
but | can not give my assent to bill which
likes upon the city over million more debt
than is necessary and oblige it to pay on
that debt S6,0O00OO interest in gold,
or at the present rate of gold S., 9,2S0, 900 in
currency and total sum of Sl3, $50, 900 in
twenty years.
IL my judgment the remedy is simple and
within the Control of tho Legislature.
First-The city should be authorized to
issue its bonds bearing not more than six per
cent interest in currency, payable III four or
ten years, at the option Of the city, and ex,
changed at par for city money. A tax
one'third of one per cent should
be collected to meet the interest and
supply a fund to pay the principal.
SecOndly-0ne-sixth OF the gross rec 1iptS
of the city treasury should be set aside each
month and applied to the redemptio OF
the notes OF those who prefer to wait than
to exchange for the bonds of the city as
above indicated.
ThiIdly-The Treasurer should be pro.
hibited from paying out any more of the
city notes, aud those row in the treasury
should be destroyed and any further issue
prohibi ed.
Foulthly The law should provide that
United States currency o1ly should be re.
ceived for taxes and other obligations due
the city.
To the last proposition it may be said
that the city cannot refuse to receive its
notes for debts due it, but that question in
wolves the legality of the issue in the first
place, and the right Of the State to inter
vene to protect its people from the abuses
OF its creature the corporation OF the city
of New Orleans.
With great Difference for the opinion
of the gentlemen of the Legislature who
passed this bill, can not refrain from saying
that Can hardly conceive the provisions of
bill on this subject, which could oe more
objectionable to the taxpayers Of the city Of
New Orleans than the one before me. II
would be by far preferable to levy direct
tax OF three per cent OH the property of the
city and collect it atopCe, than to enforce the
provisions of this bill.
III vote on the passage of the bill wCs
recOusidered in order to consider the veto
message. ...t..
Mr.. Pratt, Of Claiborne, moved that action
on the message be postponed till Wednesday
next. ....-
motion was laid on the table. +
Message from the Senate asking concur.
renee in Senate bills Nos. 2S5 25S l79 Joint
resolution No. Is, and announcing concur
renee in House bills Nos. %, 275 with
amendments, aud No. 1872.
On motion OF Mr.. Pratt, of Claiborne,
action on the veto message was postponed
till Monday next.
Onlrno4ion of Mr.. Holland, of Tensas, ten