New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-06-25
how THE CITY DEBT WAS INCREASED

HOW THE CITY DEBT WAS INCREASED
The amount of State notes received by
the city treasurer under authority of an
ordinance of the unreconstructed Council
of 1866 '67 was nearly sSOO,000 The
next Council was compelled to sell these
notes, and realized an average of about
two-thirds the nominal value. This trans
action cost the people say 10 round num-
bers 100000.
As soon as city money began to depre-
ciate in consequence Of the daily excessive
issues the reason assigned therefor was
that they were illegal. An act of the
Legislature would cure that defect and
restore them to par. But the Legislature
Of 1866 could not confer 50 great benefit
on the city without consideration, 50 the
act legslizing city notes was burdened
with a condition that lac city should issue
81, 500 900 more, and loan this amount
to the State. This proposition was for
mally accepted by the, Council in an
ordinance daily passed, But which was
vetoed BY Mayor Heath, At this time. as
the Official reports have since shown TiisFs
than four millions were in circulation,
while the collapse of the rebellion and the
general diffusion Of national currency
throughout the Southern States destroyed
The previously existing demand for city
notes as currency, and drove all outstand-
ing bills to the city, where their value was
naturally higher than it was in the country.
The depreciation was produced by the
natural causes Of d want Of demand and
an abundant supply, and the legalizing
process, Il It had been fully carried out.
would have still further Impaired the cur.
rent Yalne of the city issues by the increase
which was required as condition Bot
the Common Council Of thar day attempted
20 deceive the people BY assigning an In
correct reason for depreciation. Even the
Conservative papers sudeavored 70 demon
strate that this large Increase il the circu.
latien Of clsy money would greatly i'm
prove It's rapidly depfeciatng value.
Some time during the gear this same adj
ministraiion paid ss4, 900 Of the e,ooe
warrants Illegally iazued to Z. A. Patter-
son d Go. BF giving up their contract to
collect leyee dues during the War--a CON
tract which the parties we're only too glad to
reiinqaish without any bonus, These war
ranta we're Issued ~ tho city government
before the arrival cf the United States
forces, aad we're made payable one year
after date They bocams due after The
city had been famed over 70 ths military.
Gsneral shapleE refused 10 pay them, and
) snit was Instituted against the city. Tie
diairiut court resasrsd q Judgment IN fayof
Of the city and ID sppsal vas i6keu b
he plainslas 10 ne ne court. While
a. master was pending befors nat iribunas
as aunfsconslrdelsds dgaia cane into
po0ar IN 1850, and IN ilialsgard 81 he
jndgn Of the lever court these var
rants msEs a. once paid % % pmonus
above d "A Decision b tha
supreme court WA soon aaef
rendered amae ne judqmens
Of the Lower court Thls decIAioa
dspsiesd TIE pay IL fhssa walranis 81
~ shadow q ies bass TIE money
'Aaa been PAID oat b 81 aaiurg, Z e
h.aiaa lese u lhs ps5bls alis The Wlonns
doors can be forced 10 refund Il = lie cts.
Ansiher piece Of exiravasanca rerne.
lrated b. The sane Council ~
eQAlEaat b 1eha machinery nd