The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-02-05
ABUSING THE STATES CREDIT.

1t is time that this thing should STOP The
rapacious set of political adventurers who
commenced it will, of course, go on with it
as long as they can continue to maintain the
dislocated condition of affairs from which
they have hitherto derived an opprobrious
profit. But, at least, it is possible to protest.
/ in the name of the people of this State, and in
/ the most public and pointed manner, against
the devices by which the credit of the State is
flched hawked clandestinely in the lowest
purlieus of usury, and traded of, as all stolen
goods, to the Sbylocks and Fagins for a mere
song. The pretended authorities who resort
to this trick as ready means to procure cash
with which to support their profigacy, have
no right to act in the capacity of procurators
of the people of Louisiana in borrowing
money in their name and mortgaging their
labor and property, and the labor and
property of their children, as security for the
loan. As.long as these supposititious func-
tionaries continue in their present position, it
may be conceded that such of their pecuniary
transactions as would be honest, legitimate
and necessary on the part of trustee having
the temporary administration of an estate,
will be binding in equity on the people and
the future government of the State. But ifthey
borrow money at ruinous usury, our people
are not bound for it. If they borrow money,
and devote it to party corruption or absorb it
In schemes ofpersonal avarice, our people are
not bound for il. If they borrow money, and
squander it in so reckless or so foolish man.
ner that no substantial, visible, and calcula-
bic public benefit remains TO attest its use,
our people are not bound for it. In any of
these cases their signatures to promises pur-
porting to be obligations of the State are no
better than forgeres.
1t is to be suspected that they have violated !
every one of the conditions of equitable va |
hdity, and that, consequently, all the paper |
which they have given for loans, contracted |
on the assumed faith of the State, is tainted |
with the two fatal vices of false pretense and |
malappropriation. What can they show, in
the way of public benefit, for the millions of |
dollars to the payment of which they have
pledged the material resources of the State
and the industry of its people, with as little
hesitation as though the one were their plan
tation in fee simple and the other their serfs
doomed to its perpetual cultivation? What
can they show in the way of judicious bar
gain with money-lenders, or in the way of
proper and thrifty disposition of the money
loaned? Take the levee loan for example
Is there a mile of levee, of their building
which can be accounted valuable consid-
GRAFTON, TO that fractional extent, for the
credit of the State bartered by them in ex-
change for the so-called levee fund? We
doubt it.
And, even supposing the net sum realized
by this loan to have been applied to works of
real utility to the State, at what rate have
they discounted the faith of the State and fu-
ture produce of its people in this transaction?
Let us see. 1t appears that 1886 levee bonds
we're negotiated by the commission charged
With this business. They represent, alto
yether, Sl,5S6,000 That is to say, they pur-
,ort an acknowledgment of value received by
he State to that amount, and promise on
he part of the State to repay it with interest.
But, in fact, only ss25.525 were netted by
he operation. And in what sort of money?
ireeDbacks, to be sure, a currency about
hirty per cent. below the par of gold And
n what sort of money must they be eventu-
lily paid, if paid at all? In gold, or its
Equivalent. For the end of deprecated paper
money will certainly arrive before the day of
heir payment. Hence we must add to the
we're discounted in currency, another dis
cunt of about thirty per cent, in order
o ascertain the total extent of the " shave"
nd the real value in gold bought, in
he nominal interest of the State, with
Obligations to pay s1,5S6,OOO The result
Will show the shave to have exceeded Sc
enty per cent, and the amount of
old value actually received, in return for
which bonds are given purporting promise
o pay gold value of more than fifteen hun.
red thousand dollars, to have been little
nore than one-third of this amount.
1t is needless to multiply words to explain
he nature of such transactions. Their moral
nd their financial character are obvious
nough. But it is well that all parties con-
erned should understand the equities which
Till always exist in favor of the misrepre-
ented people of Louisiana in relation to
nancial devices on the part of pretended
tate authorities, who add to the fraud of
olitical misrepresentation the fraud of bor-
owing money at frightful usury, under the
Use pretense of public utility, and on the /
ledge of the future wealth of the State, for {
be real purpose of gratifying their own i'm
atient rapacity.
1t is not to be questioned that the Radical !
olticians in the North are really opposed to q
be settlement in the South of Northern emf !
rants. They would, if they could, establish
n embargo against Northern emigration
lrpet-bsggery excepted-to any of the Soutf-
N States in which there is considerable :