New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-07-22
know within Ave thousand dollars what it

ANo~ wA'" Hv0 snOuoeeAu vVAS3o wAoC
was. vvFs Mnrf
Mr.. Emley: Suppose You do come with
r five thousand dollars Of it, will that
knowing exactly what it, ss 1a.e
Mr.. Shaw would not chop logic on tn
point. When we knew within few tho
sand dollars what the floating debt was,
would know exactly what we could do f
the holders. It was our duty tosee that the
got justice, and that these bonds wei
properly divided among them. Every pc
son who held any of the evidences of tn
debt had the same right and was entitled
the same treatment as the rest. The larg
creditors ought not to be preferred over I'll
small ones. Had this ordinance bee
passed two months and a half ago, he ha
no doubt the Council by this time woul
have sold most of these bonds at ninet
cents on the dollar.
Mr.. Walton explained that he all alon
understood the proposition to be, as the Al
ministrator of Accounts stated, seventy-fv
per cent on the certificates. His objection
was, that such pro rata could not be pai
in bonds, especially in the case of the small
creditors, whom the Administrators Of Ac
counts, very properly was DESTROYS of seein,
paid, not more SO than he mr.. Walton
was. The impracticability of the pro rat;
scheme had already been proved. The Banl
Of New Orleans in q transaction Of four hun
dred and nineteen thousand dollars, had re
fused to pay a bslance of thirty-nine dollars
in cash, and the creditor had been compelled
to forego that amount. Take the case Of
poor school teacer to whom the city owed
a hundred dollars. On the pro rata plan
that teacher would be entitled to seventy.
five dollars. But there were no bonds
smaller than fifty dollars. Where were the
remaining twenty-five dollars to come from!
Mr. West answered that that argument
was met by the Administrator of Finances
own statement, that the holders of seven
per cent certificates valued them as much as
bonds.
Mr.. Walton explained that he did not say
that. What he said was that intrinsically
the seven per cent certificates were worth
as much as bonds.
Mr. West said the argument of the gen.
tleman was that some Of these people could
not obtain bonds, but would have the op-
pOrtunity of retaining these seven per cent
certificates, which were just as good. He
(Mr. Vest did not agree with him because
a bond was much more negotiable than
certificate. The whole question was mar
rowed down to this: The bonds were not
sufficient to meet the whole floating debt.
and the ordinance Of the Administrator Of
Accounts was designed to prevent the pay
ing of some creditors in full, leaving others
out in the cold.
Mr.. Walton did not admit that the cred
TORS temporarily passed by were left out in
The cold, or tlpt they were injured in any
way whatever. His objection to the ordi-
nance was that it could not be carried out
t was altogether impracticable.
Mr.. Shaw remarked that there was no
such thing in the world as perfection, and
lie thought the plan proposed was the fair
st and the best to all the creditors, even
hough there should be some fractions of
'laims which could not be converted into
ponds.
The Mayor observed that the words
seventy-fve per cent or more" in the
ordinance, left it open for the bidder to
ccept the whole if he could get it. If it
vas utterly impossible, as he believed it |
vas, to pay on the pro rata plan, it left the |
DOR open to pay the whole claim He |
vOuld like to ask the Administrator of |
accounts how many claims there were less
han hundred dollars!
Mr.. Shaw: A great many.
The Mayor: Ten thousand,
Mr.. Shaw: Yes, sir.
The Mayor: How can these persons be
aid who have only these small accounts9
Mr.. Shaw: If they can not bid they will
OF bid.
The Mayor But how will it be possible for
lese men who hold at least five hundred
lousand dollars worth of the floating debt
bid at all!
Mr.. Shaw replied that persons who could
1t bid would not bid, but they would lose
'thlng Every man would get his pro
ia. That was guaranteed. The main
lint gained was, that by this plan the
ouncil would get higher price for the
'nds. Everybody knew man would give
ore in certificates than in cash. War had
oxen out in Europe, and cash was not
ailable just now. This was an ordinance
hich the creditors of the city themselves
They came and asked him,
Why don't you give us a chance to bid
r these bonds!" He could give names of
editors who came with this inquiry to his
ice nearly every day. If the rich man
me on and bid higher than the poor man
: the bonds, so much the better, for the
or man in the end-there would be a S
CHER pro rata. The Council had to meet |.
is question of paying the floating debt of {
g city, and there was but one way to do
That was to do right We had no right
settle with one creditor in full and give !
other creditor nothing at all.
The Mayor: We are doing this all the '
ne. We are paying one city creditor, and a
ting off others.
Mr.. West: Not creditors of the same !,
Ss. 7
Mr. Shaw: The Legislature has given us u
zee millions Of bonds, and authorized us !
tn them to create fund out of which to q
y the floating debt. We know we can n
pay more than eighty cents on the dol a
out OF that fund, and if we pay one man :,
hundred cents on the dollar we must leave h
lers unpaid. call for the yeas and nays ii
the ordinance "
1r. Bonzano Before we rush this thing II
ough; there is one question 1 would like d