New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-10-09
EIGETY-TWN AND HALE.

had been negotiated and delivered. This
does not include considerable number
of offers which had been accepted at 49, J,
but the certificates had not been delivered
for exchange, owing to the Barton man
damus case, the parties wishing to see the
result Of that first.
From the very beginning of the float
ing debt adjustment, difficult questions
have arisen. The bill was patched to-
gether, and the parts relating to financial
matters, particularly the floating debt,
were very poorly drawn up. These were
devised in the interest of a portion of the
floating debt holders, but failed, by I'M
| skillful wording, Of the object intended
1t is, perhaps. fortunate for the interests
of the city that they did.
The portion of the holders alluded to
were really spectators upon the debt.
We speak of them without disrespect as
such; they We're by no means class that
were suffering by n-payment of the debt.
The city government appointed, under
| the charter, have construed the act &C.
cording to its wording and what they
deemed the best interests of the city, re-
| CARELESS Of the omissions claimed to have
been inadvertently made, and which, if
supplied mentally, would give the act the
effect intended.
The question has been raised whether
the city has any control over the negosia-
ton. The testimony shows that it has
exercised control but the point is whether
this control could be enforced.
A false idea has existed in this city
relative to Fiscal Agency and It's powers
Unfortunately the city has had govern
ments which nobody had confidence in,
and fortunately it has had Fiscal Agents
which possessed the public confidence.
1t does not follow that fiscal agencies
should have unlimited power. The fact
is that N this State as well elsewhere, their
powers are limited to those directly given
when they are created, and these are ne
cessarily and Of right construed very
strictly. Otherwise they could usurp to
themselves the functions OF buyer and
seller, and carry on Wholesale swindle
without check.
III the act creating the present admins
tratorship Of the floating debt, but few
powers are given it. 1t is mere me-
cb2nical functionary, created for the very
purpose Of preventing an unworthy city
government, If the city had unluckily Oh
tanned such, from doing the very thing of
being buyer and seller at once.
The law makes the city government do
its business through the medium of the
bank. The bank negotiates for its pri1l-
cipal. All powers not delegated to the
bank, belong to the owner of the bonds
The owner is the city. Who represents
the city? Not the bank, except in the
limited function given it by the law.
Where do the remaining powers reside?
The charter gives the Mayor and Council
the administration OF the affairs of the
I, d
sense, and thus the power is derived to
represent or bind the city in contract,
sale or any other bilateral proceeding.
Here this power resides, and no where else.
The Council accordingly contracted
with the Bank Of New Orleans that it
should submit all bids to the city govern
ment, and make no sales against its con-
sent, and this contract has been honorably
lived up to by the bank.
Even if the city had not such power,
the bank, which would then have discre-
ton, showed its unwillingness to sell at |
IS, and could not be coerced to do so. |
Such q proceeding would SAVIOR of an
executory or forced sale, and would be |
null and void for wan: of consent The |
proof that nearly the entire debt has |
offered a higher price N exchange, made
the idea of forced sale at that price f11-
tile.
The Legislature evidently took cog
nizance of the consequences of possible
delay, by making the floating debt bear
seven per cent interest, whereas large
parts Of it CITY notes and war
rants) bore no interest before, and iudg-
ments only five per cent. We have dis
cugsed this matter because the other side
has been publicly discussed, and it is one
Of great interest to taxpayers. Great zeal
and confidence has been exhibited by the
friends Of compulsory negotiation, and
we have found no fault with their side of
the contest, conducted, as it was, by GEN
hemen of ability and capacity.
We took occasion, while opposing the
proposal of forced sale as Illegal and, in
effect, spoliatory, to recommend the CITY
to fall to so. We do not regret that they
lid not take our advice, well-meant as it
was, for the fact that half the debt is set
lied, and probably million more will be
this week taken in connection with the
1elicacy Of the position the city would oc-
,upy to those who came forward at 49,,
md the reclamations they would claim or
entitled to, show that the
city administration did well, perhaps, by
firmly to their position. There
IRE three or four hundred thousand bonds