The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-25

There are two sets OF these bonds authorized by
the act Of the Leglslature-one set of three millions
"to be given exclusively In exchange at par for
what Is known as city notes, that is to say, those
notes for small amounts which have been issued by
said city and were used as q currency for several
years." and which bonds, II not used for this purpose
and endorsed by the fiscal agent. ''shal be OF
validity IN the hands Of any holder" The second
set OF bonds, amounting to S20OO.00O is authorized
to be given in exchange for tho floating indebted
ness Of the city also at par and as 1t Is bonds OF this
description exclusively that have been placed upon
best EXPLAINED by giving usat the section Of The
act which prescrlbes their mode OF ISSUE leaving the
facts to carry their own weight Section three Of
ruary, 1883. provides:-
enable the city of New Orleans to fund and qu
Sqs now sg such s.
" &C. %
from date besrns Interest al seven FER ssaam
ss; az ess
Of
city and shall be given by said fiscal agent exclusively
Ssri5sd and ss.,ss aorsssid shan Ss tSSi:Ssa
.a % s sSs
o. said Sly creditors satsmon. or to
It will thus be seen that the requirements Of the
l. That tho City Comptroller and Treasurer shall
prepare statement OF the Indebtedness OF the city.
2 That the bonds shall only be disposed OF In pay.
ment OF the debts so set forth, and only disposed Of
A subsequent section OF the act adds q third
requirement.
sIorrox Be further enacted &C., That the fiscal agent
ana Of thus
sS S Ss ss M
on hsn Which shall be Verified and
Tn inv Tn nfn
be placed Che following facts
]. On personal inquiry at the Comptr0llcr's Office
your correspondent was this morning Informed that
no statement of debts had been prepared by the
Comptroller and Treasurer.
2 Consequently no bonds have been exchanged ae
par for debts set forth In said statement.
g. On personal inquiry OF the Fiscal Agent your
correspondent is informed that no sworn statement
OF bonds issued, Or on hand, has been published
or prepared.
At the meeting Of tho City Council last night tho
how the bonds negotiated In New York came to be
put upon the market submitted the following
communications
Hon JcsS K: coswAT, Mayor Of sy q New od.sns
IN T 1 as S has
mee Of the Common Council Of this city conadod to The
s s GH% s
cent N;y s0 ndsg $4,000 Of sss IL
sam.tsnces tho negotiation e said bond: ia New
ssss ss:s? s ss
Che credit OF the city hope was held
might
f.; the ssS ssSd'
ss SSYs
s On bs the assss Of s % said
only obtained through the friendly and oon.derate inter-
myself Concluded accept !hs Tss 1ssos!iSs
s as ss'aS
S s @ credit 70
ss ss as % e.
be- wit" 4Hgsas EsSySs most
Pssideu southern Bank. Fiscal Agent Of the ely Of New
Orleans
Upon the reading OF this document the Board Of
Assistant Aldermen passed the following resolu-
tiOn:-
ell with detailed statement Of the seven per cent bonds
Ss, Sna 10 s az ss
the reasons why hs has failed scSordspcs With the second
s%s Ss s
sssr M Ss
Of bonds issued under the act which he has exchanged
isune Judgments outstanding accounts, &c. well -
those bonds remaining on hand.i
These are the simple facts Of the loan inbroQllo
make no comments and draw no deductions The
remarks that follow are not your correspondence.
but are made Of the request OF ana astcs to
York market. The circumstances are stated to be
that the two millions OF bonds authorized exceed
considerably the existing floating debt of the city.
pressing necessity being felt Of restoring the credit
OF the city, the Finance Committee being authorized
by the Council to do what they thought best lrse
paid to the commissioners OF the Fink and MoD0n-
ough fund.- trust fund to which the city Ia always
more or less ndobod-a sum OF some $500, 900 in
bonds and then borrowed them back and sent them
to New York Tor negotiation With a similar object
some 100000 worth OF Metropolitan Police warrants
were taken up with these bonds, that the tax
payers, who previously paid their taxes with those
warrants, shonld be compelled TO pay greenbacks
Into the city treasury. The favorable terms obtained
Tor the bonds In the negotiation In New York-terms
higher than the consolidated bonds OF the CITY sell
Tor In the city tsef-1t Ia c0ntended Will 10 far TO
relieve the city from embarrassment. In brief, tia
Fiscal Agent claims that the transaction though NOS
within the letter OF the law IL within It's spirit and
must provo advantageous TO the CITY. Further de-
vel0pMeuta are waited for.