The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1869-01-27
Gha Sem Orleans @rtstsul.
wEDNt sDAY MORNING. JANUARY ~. 1869,
THE LEVER BOND rnAxsACrIoS.
OFFICIAL REPORT.


The following is copy Of the official report of
the commission appointed to sell the one thousand
five hundred and eighty-six levee bonds, as pre-
sented to the House of Representatives on Mon
day by A. L. Lee, member from the parish of St.
Bernard: "a
NEW ORLEANS, Jan. 2, 1869.
To the Honorable President Members the Senate
The commission appointed under the provisions
and act NO. 1885, approved 1865, to dispose ci 1885
levee bonds of this State, beg leave to submit the
following report: That this commission organized
October s. 1868; that at or about that date. these
bonds were selling in market at about forty-seven
cents. Owing 70 the disturbed condition of af-
fairs, it was not deemed best to offer them fcrsale
at that time There were at this date IN the hands
of purchasers some So 100000 of this series of
bends, which had heretofore been issued by the
state and the semi-annual interest thereon was to
fall due on the first of November wise provision
of the act originally providing for the issue of
these bonds had imposed an animal tax, which,
being paid into the treasury, was set apart as
sacred fund for the payment of their interest aud
for their final redemption. In July, 1868, that fund
was in amount nearly sufficient to meet the No
vember interest, but the transient necessities OF
the Legislature induced, by act transfer Of this
sacred accumulation to the general fund. There
was, therefore, nothing with which to meet the
November interest.
The commission decided to negotiate loan of
800, 900. and from that sum deposited to the
credit of the general fund the treasurer might re-
turn the sum borrowed from the levee fund, and
the credit of the State be preserved by the pay
ment of the November interest. This was done.
Mr.. w. S. Pike was employed by the commission
to negotiate loan of $l00, 900, which he effected
on terms and conditions set forth in the contract
herewith submitted, marked "a"
In effect, the contract of loan was that, By
pledge of three hundred bonds, Mr.. Pike obtained
from one ]. H. Banker a loan of $780, 900 for
ninety days, giving said Banker the option of pur-
chase of one hundred of these bonds at sixty cents
at the maturity of the loan.
The expense of the loan, as returned to the
commission Dy Mr.. Pike, was as follows;
Deduct ninsty-tWO gays Interest at %,
S ssysa per Ssr cent cent Of soS %
Exchange. 4oS 10 "a, -
seS EOS p
The loan realized net 500 ,20S %, which was at
once deposited with the state treasurer. About
this date twenty five bonds were exchanged for
warrants issued under the authority of the present
General Assembly at the market value of the
bonds. to.wit forty-seven cents. These realized
the sum of Sll,750. About December /, 1865,
Messrs Lynch and Lee, of the commission, were
depuied TO proceed TO New York and attempt
negotiation of the bonds On their arrival in New
York there was found q general distrust Of all
southern securities, this dstrust especially touch
ing the securities of this State. Louisiana bonds
were not quoted on the stock exchange, nor
would they be admitted There was little if any
market on the street; the only offer TRANSPORTING
during the stay of the commissioners being of a
lot at 50 cents, which offer found no buyers. After
much negotiation the commission at length sold to
Messrs. Osborn q Cammack 1900 bonds at fifty
one and one quarter cents per dollar, as per con-
tract herewith transmitted, marked "B."
AS a preliminary condition to negotiation II was
exacted by Messrs. Osborn 4 Cammaek that pro-
vision should be made for the payment of interest
on all State bonds accruing in January and Feb.
ruary 1863. The commissioners communicated
with the treasurer, who transmitted pledge th al
from the proceeds of this sale he would see to it that
the interest on State bonds accruing in January
and February, and amounting to about $4,000
should be paid.
The terms, 10 brief, of this contract, were thai
Messrs. Osborn Cammaok should purchase
1900 bonds at 6fty-one and one quarter cents
total s666 $50. Bonds TO be delivered and money
paid in amounts and at dates as follows: