New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-10-26

Al
the expenses ofthe city government. These
notes bore no interest. 1t was exactly the
same as If loan had been made, without
interest, to pay the indebtedness of the city
10 those who were rendering it service.
NOW. what would have been the situation
OF affairs, II, instead of issuing these notes,
the city government had gone out into the
market to borrow money TO defray its ex
penses Does any one suppose 1t could have
been obtained at less rate of interest than
SIX per cent, or eight per cent or even
ten per cent? take it that this five mil
lions of dollars is as honest a debt as
tne city ever contracted. 1t is held by
all classes and conditions of people here
school teachers, policemen, laborers. There
are scarcely any of my acquaintances here
but hold more or less of this paper. This
currency was established by the city for the
purpose Of paying an honest debt, owed by
the city without interest. 1t is not held al.
together by spectators, as gentlemen would
nave us believe. / will wager that not one
half of it is so held. 1t is in the hands of all
grades OF society, and they received it for
the labor they performed. 1t is debt con.
tracted in good faith. Now, sir, in conse-
quence of no provision being made for
taking up this debt, it commenced declining
In the market, first to two per cent dis
count, then five, ten, twenty, and so on,
until not more than sixty cents on the dollar
could be got for it. Three millions out of this
five millions remain unpaid, the majority of
which is in the hands Of those who received
it for their services; and we are upbraided
and reprlmanded by the Governor, and
those who sustain his veto because we
desire, by means of this bill, to raise money
to pay an honest debt! Why, sir, the
Governors message advocates fiat repudia.
ton when it says that because this money
is in part held by spectators they should
be compelled to take bonds at their face, the
nf uula mt nr
cents on the dollar What is that but repu.
diation If you give me your note for
money loaned you, and you are not able to
pay it when it is due, and choose to sell it
at discount to some gentleman who has
money, is that any reason why you should
repudiate the debt? Or are,you justified in
attempting to take up that note by another
note which is not worth more than sixty
cents on the dollar? | say it is reputation
on the part of the Legislature to force the
holders OF these notes to give them up for
less than their face. l shall never vote for
such a proposition as that, and am sur
prised that while the Senator from Carroll
who supported the Senate bill as it was orr
ginally passed, should so sTenuously op-
pose this bill. ~
Mr.. Lynch: did not support it.
MIR. Ray; was under the impression the
Senator did support it. However, that
makes no difference. What does this bill
pIOpOSG W accomplish II auL0OI1ZeS the
city to issue five million of bonds bearing
six per cent interest in gold, and author
ICES the sale of these bonds for the purpose
OF raising money to pay this debt, dollar for
dollar as it is their duty TO do, even if it
does cost them one or two millions to &C.
complish it. The idea of compelling man
to receive anything less than the face of the
obligation he holds is kind of financial
policy and morals do not understand.
[Some disturbance here arose at the door
of the Senate]
The President: The sergeant-at-Arms will
put that man out.
Mr. 0Hara: MIR. President, desire to ex-
came to the door of the Senate and cal-
ed for me, and when went to the door
he offered to strike me, and when resisted
he pulled out his revolver.
The President: If the Senator will keep
his seat there will be no such disturbances.
Mr.. Ray: Now, Mr.. President, when we
look at this bill from a plain business point
of view we see none of that injustice about
It which gentlemen would have US believe.
Let me recapitulate. The first section au
thorizes an issue of five millions of six per
cent. bonds. Subsequent sections provide
that they shall not be sold at less than
eighty cents on the dollar, and that the
money shall be used dollar for dollar TO re-
tire this city money. is not that fair,
straightforward proposal n?
The policy of the Governor, as laid down
in his message is TO repudiate this debt Is
the great city of New Orleans to repudiate
an honest debt To say to those who taught
her schools or cleaned her streets, or per.
formed any other service, at the current
price, and received in payment this money
at par, you must take in exchange bonds
which are only worth sixty cents on the
dollar, and lose the interest entirely. It is
disgracefnl in principle and ruinous to the
credit of the city to repudiate cent of this
debt. Better to pay it three-fold.
Now, as to the cost of negotiating these
bonds, l do not know what they can be
sold for. am not in the financial circle.
But gOld-bearing six per cent bonds, If they
are taken to Europe, with property of
Sl40, 900 600 to back them, will. in all proba-
bility, sell for more than eighty cents on
double.trigger work about it; it is plain,
honest proposition. 1t has been before the
Legislature essential features ofit-for
two months past. l myself have talked
about it with men. connected with the city
government and men that ! knew owned
property, and until recently / have never
heard single objection to it. '
Now, sir, word or two about sin.
Auences" brought to;bear, either to defeat or
to pass this bill. ] know nothing about
those influences. No approach has been
made to me by anybody, nor have heard
of anything of the kind until here on this
floor tonight. But undertake to say here
that there is no Legislature in any State,
and no Congress in any country, where in
tiuences of a pecuniary nature are not
brought to. BEAR or attempted to be used to
effect legislation i do not approve of them,
and when men can be detected in them they
onght to be punished. But is there man
within the sound of my voice who does not
know that Congress and the Legislatures of
other States nffan I'D htr
huences Of this kind? / say 1t Is wrong and
ought to be punished; but that men should
attempt these things is nothing more than
occurs elsewhere, and am glad to hear that
it accompllshes nothing; that although the
Governor has been offered $50 600 to sign
the bill he does not do Soft that is the
reason why he declines to sign it.
If Senators here have been approached
upon the subject that is no evidence that
any have been influenced by such motives.
But the men who seem to have received the
offers of brides were not members of the
Senate. They seem to have been lobby
members. Therefore there is nothing in
that argument, and the invectives of gentle.
men are entirely unwarranted.
The Senator from Carroll has argued that
the bill was irretrievably killed in the House,
before 1t came down to the Senate. That is
O question of parliamentary law that might
admit of some discussion. 1t is my opinion
that any measure can be RECONSTRUCTED until |
the time expires under our rules for the re- |
consideration of vote. / do not recollect |
any precedent at this time, but that is my |
opinion. 1t seems to me that there ia no |
difference between q vote taken on Gov
ernor's veto and vote taken on any other |
question.
Again, it urged that the bill places too |
much power in the hands of the Mayor of |
this city. That depends entirely upon the |
honesty OF the OfiIraF / haxa oh I'D iT,l