New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-04-26
CITY BONDS,

proposition to allow brief time Tor tne
taking up of city bonds at par by the
holders of warrants, city notes. and other
forms of floating indebtedness.
A few years ago many people sneered
when the United States went upon the
home market for loans. Foreign capital
was refused, tie markets of Europe de-
clined to touch American securities, tie
heavy capitalists of New York and Boston
turned deaf ear to the appeal Of the
government, but Secretary Chase success
fnlly appealed to the people. The conse-
quence was, that in two years American
securities were sought on change in
! Frankfort.
The curious demand is now made on
the city government that they must issue
the three million bonds which they are
merely authorized to issue; not only that,
but they must sell them upon the market
| as it stands. The design i, to force sale
| of them at seventy-ive cents on the dollar,
and anticipate their probable rise to
| eighty-hve or ninety.
| Were it not for the want of confidence,
caused by past NEUTRALITY-SUSPICIOUS. of the
| city government, city bonds would be
worth as much as those Of the United
States government. Their true value is
par. They rest upon the same basis as
| ITnite5 Stotac ooou,itioo 4ba ,,or,l GOV
tainty of their payment in the end, and
the punctual payment of the interest in
| the meantime.
1t only requires brief time to
mature the confidence of the people in the
present city government to bring about an
unprecedented rise in city securities.
Were they to throw the three million
loan upon the market at the mercy of the
bears, without retaining the power of re-
jecting ruinous bids, they would be add
ing just the amount of loss on the bonds
to the present city debt.
Now, the holders of the floating debt are
divided into two classes-original and
transferees. TIE former are those who
have held their own without having to
sacrifice their securities to capitalists
The latter are the capitalists, who have
bought up the hard earnings of laborers,
teachers and such others as have had to
part with their city paper at ruinous dis
counts.
It is these capitalists and their agents,
many of whom hold registered bills bear
ing seven per cent interest, who wish
to force sale of bonds at seventy-ive,
adding thus thirty-three and one-third
per cent to the city debt. Surprising the
registered bill holders Or their representa-
tives, holding say million and half of
city securities, hid seventy-fve cents on
the dollar for bonds, they will get two
million of seven per cent bonds for their
million and half of city securities. Would
not this add half million 10 the city
debt?
1t is the duty of the City Administrators
to measure every step they take. Sacri-
fcing these bonds adds to the city debt,
and does not discharge one cent of it, nor
does it relieve the city's difficulties to the
extent Of one cent.
The way to extricate the city from its
difficulties is TO economist the administra-
ton, gather in the revenues, and wisely
apply them to necessary expenditures and
improvements, and though we recommend
an early and rapid exchange of the floating
debt into bonds, let the negotiation be
open and unconcealed, discard all under
handed means, let The public know tie
rates of the bids before their acceptance.
and when you alter one form of public |
debt for another let the loss not be too |
great.
1t is quite amusing to hear holder, or |
agent Of holders, of registered seven,per |
cent bills asserting the necessity of the |
lily maintaining its credit, and at the same
ime declaring that bonds can not reach |
'ver seventy-fye cents. He means that be
hall receive one dollar in the form of |
ponds tor seventy-fve cents in the form of |
registered bills. He gravely talks about
he public confidence in the new govern
nent as wavering, because forsooth they
re not willing to increase the city's prom
SEES to pay in his hands thirty-three and
third per cent without any necessity or
ause.