The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-02-23
THE CITY HONEY QUESTION.

The bill which has already passed the
Senate providing for the conversion of city
money into bonds bearing seven per cent
interest, comes up in the House to-day. 1t
is believed that this bill has even a fairer
chance of success than that prepared, it is I'M
derstood, under the auspices of the fiscal
agent, and which provides for the more rea-
other measures are, or have been, before the
Legislature-that which is known as the gold
bill, and which provides for six per cent. in
terest, payable in gold; and another intro
duced by Mr. Heidenhain which has not yet
been referred to in the press. The latter lbill
is similar in all respects to the two bills first
mentioned, except as to the disposition which
| il proposes to make of the city notes.
i Il provides that the sum of 500, 500 per month
shall be paid into the hands Of the fiscal agent,
$500 to be appropriated to the payment of
interest and redemption of bonds to be issued
in exchange for all the floating debt except
city money, and S13, 900 to be devoted to the
purchase of city notes, through sealed pro-
posals. The difference consists in this, that
Mr.. Heidenhain's bill avoids the pay
ment of interest and provides SIM
ply for the extinguishment Of the
city money debt by purchasing it at its mar
ket price. This method is certainly far more
economical than the other, and it has the
conspicuous merit of being exactly suited to
the public opinion of this community. The
people of New Orleans are, we believe,
thoroughly opposed to any financial scheme
that converts the city notes into bonded
Understanding debt. They have already
expressed this opposition by formal vote
against measure of this kind, proposed
when no other offered itself for solving the
city money problem, and for getting rid of
the present embarrassments, and the pros
pective disasters, to which the use of that
currency subjected the city government. Now
that these difficulties are averted by the new
policy of receiving only greenbacks in pay
ment Of taxes, there is actually no reason
whatever for funding the city notes, and pub
lie opinion must, naturally be much more
strongly adverse to such a measure. We,
therefore, take this opportunity of protesting,
in the name Of the taxpayers of New Or
leans, against any act of the Legislature
which shall attempt to compel the city to
saddle herself with the additional expense of
interest on the city notes, in favor of a small
number of persons who have bought up this
tainted currency for the purpose of specu-
lating on the good faith of our people. We
have already suggested that the holders of
city money who should attempt to force that
money on the city in payment of taxes, by
means of itigated opposition to the payment
of greenbacks, might find, in the end, that
Judicial examination of their claims would re-
leve the city from any legal responsibility for
the outstanding currency. That such might |
be the result is, at least, a plausible view of |
the legal aspects of the question; and, under |
these circumstances, the utmost that can be |
demanded of the city is to make provision for |
the payment of the principal. When the |
Legislature goes beyond this, it is committing |
an act of tyranny upon the taxpayers, and it |
is, moreover, usurping jurisdiction over a
purely Judicial question. The city would
have right to refuse compliance with such
an act, and to appeal to the courts for protec-
ton and redress For it is plain that if the
city is not legally bound to pay the city notes
at all, for still stronger reasons it cannot be
compelled to pay interest on them. We re-
peat that the payment of the principal is all
that can reasonably be demanded-al that
the most fastidious faith can require. Mr..
Heidenhain's bill provides for this, and, there
fore, it does no injustice to the holders of
city notes. 1t forbids the conversion of those
notes into any kind of Understanding obi
cations, and, in this, it correctly represents
the wishes of the public of New Orleans. We
trust that strenuous effort will be made to
bring this bill to the favorable notice of the
House, and to substitute it for that which has
already passed the Senate.