New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-04-24
THE FLOATING DEBT.


election of an Administrator OF the Float
ing Debt, from among the chartered banks
of New Orleans. The bank is to be charged
with the function of negotiating the bonds,
and performing the transfers and pay
ments. This is q ministerial function.
and does not carry With it any dlScretion
az TO acceptance Of prices or final passage
upon The terms of tie negotiation. HE
charter forbids he negotiation oT sale at
less price than twenty-five per cent dis.
count from the face of the bonds. 1t con-
tains no further directory provisions con-
ferring any discretion upon the subject
The question then arises, where is such
discretion vested? For there must be q
power Of decision somewhere, upon the
final completion so important sale a:
that Of the public bonds of New Orleans
The Administrator of the Floating Debt,
being q mere blind functionary, vested by
the act OF the Legislature with no such
powers, we must look elsewhere for them,
Naturally, the dominion over property i:
vested in the owner. The control Of the
bonds belong to their owner and issuer.
the city of New Orleans. 1t takes two to
make bargain; no sale can be made
Without an acceptance and mutual agree
ment of the two parties upon the terms.
Who, then, represents the people and tax
payers Of New Orleans upon question sc
important, nay, SO vital to their interests,
The administration of the government
and affairs of the corporation of New Or
leans is vested by the charter in the sew.
en- departments created by the act, and
this makes the City Council composed Of
the seven administrators of the depart
ments the legal and only representatives
of the people. More than that, the char
ter expressly vests in them the power to
pass ordinances, to assess taxes, to cell
property and raise revenues of the city.
There is no other agent OF the city
vested with such power. 1t resides in
tnCIl, anu luCluASS tAc Po"Oh Va USCAaiAA6
the acceptance of any terms of sale,
although the mechanical function of nego-
tiating and transferring belongs to an
elected and delegated functionery. As
well might an auctioner be supposed to be
delegated with the power to sell at mini
mum price, without the consent of his
principal, as to suppose bank vested with
the power of sacrificing the interests of the
taxpayers of New Orleans to ravenous
ring, bearing the market, slanderipg the
public credit, and depreciating the public
securities.
If the City Council of New Orleans
were to part with this power and duty it
would betray the trust imposed upon it.
Where power is vested it is duty to exer-
else it for the benefit of whomsoever it may
be held for.
The ordinance recently adopted by the
City Council. for the issue of bonds and
the restriction of the floating debt, has
for its evident purpose an open negotiation,
and the prevention of all underhand bust
ness in selling the bonds. 1t provides for
a public exhibit and inspection of all bids,
and their approval by the City Council.
1t protects the people of New Orleans,
the owners and issuers Of the bonds from an
irresponsible negotiation and sale of
their property, at the mercy of an artifi-
cial depression of the market, such as is
not only possible, but has been freely and
boldly threatened of late. We do not
we'd our opinien to the strict terms of the
ordinance as passed. They may be faulty;
perhaps they should be modified. But
the principle of the ordinance is good,
and the Administrators must stand to that
principle if they are faithful to their trust
The Legislature has no power to divest
vested rights. The charter does not pre-
tend nor attempt to divest the dominion
of the city of New Orleans over its
own. How can it be implied then
that it has done so, when it has not even
attempted to 80 in words 1t is not the less
a duty of the Administrators to maintain
their Justly vested power, because, in the
discharge of their imperative duty, they
may be accused of being tenacious of re-
tanning power. If it is their duty to do SO,
let them do it fearlessly. They will be
sustained by the continued confidence OF
the people.