New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-11-08
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OFFICIAL JOURNAL OF THE UNITED STATES
Official JOURNAL OF NEW ORLEANS
CRY CoUNc1L-oFFIcIA1
REGULAR MEETING-CONTINUED.
CITY HALL, NEW ORLEANS, I
TburBdav, NOvem Der :, 1872. )

eidiugl. and Administrators John CocKreIn
NmprovementsD, Alfred Shaw Public Ac-
counts. L. T. Delassize tWaterworks and
Public buildings, +. G. Rcmick Com
merceD, James Lewis tPolicel, John S.
Walton !Finance). and II. Bonzano tAssess-
ments.
The FfscaI Agency L0ano
The Mayor requested permission 20 make
some clerical and other changes in the mes
sage laid before the Council on Tuesday
last giving his reasons for signing the or
dinance negotiating q loan OF Si,@ooooo
with the Fiscal Agent.
The message. as amended, read as lol-
!ows:
MAYoRAL7Y OF NEW ORLEANS,
November 5, 1872.
To the City Council Of New Orleans:
ADwINIsTRAToRs-The vote on the loan
ordinance at the last meeting OF the Coun-
Gil seemed to cast upon me the responsible
fvof deciding whether the ordinance should
20 into effect or not. In declaring the ordi-
nance adopted l stated that | would give
fbe reasons for my decision, whatever it
might be. at the next meeting, and that
should decide as soon as possible to prevent
the scandal which might arise from specu-
lations in city paper during delay. L
was therefore much gratifed, Immediately
after the adjournment by visit from the
large number Of very intelligent and
respectable citizens who had attended the
meeting of the Council and demonstrated
against the passage OF the ordinance. They
wished me to veto the ordinance, and pre-
scented the following specific objections to
it, enforcing their objections by argument
at considerable length:
l. That it was improper for the Council
TO adopt so important measure so near the
end of its official term of office.
2. That the action was hastyo
3. That it was illegal.
a. That il converted nOn-interest bearing
obligations into an interest paying DEBT.
5. That the terms are too OnerOus and that
better could be obtained: that proposals
ought to be advertised for so that all parties
might have fair chance at the loan.
+. That the securities given the bank are
zoo much for the amount loaned.
Z, That the bank has been purchasing
large amount Of city obligations which are
TO be taken up under the ordinance and
that it will make q large sum OF money by
the operation
s. That the ordinance allows the bank 20
decide 90 which city creditors the Sl10.OOO
cash per month shall be paid.
9. That ic does great injustice TO holders
of bond certificates in pOstpOniDg for year
the conversion Of the certificates into bonds
10y allowing the bank a year to negotiate
the sale of the bonds.
10, That the bank is a new institution
with a small capital, and that 10 does not
81, ,tr,txr - tlpEF
an amount OF collateral securities as the
CITY places in its hands.
H. That the proposed loan will be made
Guate to place the city on a cash baslso
These are all the objections those gentle.
men had to suggest. They embrace sub.
stantiaIly all that have heard urged or
shat have been able to find, either against
the adoption Of the ordinance by the present
Council or against the measure itself.
Before proceeding to discuss the merits
or dement's Of the measure. Yet us see what
It is. 1t has been misrepresented 20 the
9ublico Several of the gentlemen CemOn.
atrants admitted that they had not read the
ordinance: and their remarks about it
showed that they had been misigtoTmeG in
gegard to its provisions.
The bank stipulates in its proposition,
which is the substance Of the ordinance
under consideration:
I. To continue the loan Of S30C,00e now
due the bank by the city.
.. To pay and return to the city S1jo, 900
of its obliga lions. which are now receivable
3Or taxes.
3. 70 advance 100000 in cash-$l25,000
60 month for each of the months of No
Vember, December, January and February.
making q total loan Of 81 $50, 600, upon the
following terms and conditions:
/, One per cent commission on the amount
paid out, and interest at eight per cent in
gold on the amount loaned.
2. That they shall receive as security
Certificates convertible into gold
interest bonds. observation-disclosures. SS33,OO0
Ten per cent bonds. ............. U21,UOO
Market mortgage notes.. 'OO.0OO
Total. ..................'.. ,31o.VVo
g. That the city shall issue no more ap.
preparation certificates or other evidences
of Indebtedness till the fifteenth OF March
next, except such as are required by law,
or for existing contracts, or for indebted
ness already incurred.
f. To continue the bank as Fiscal Agent
of the city till 1877.
5. To extend for six months the existing
agency of the bank to negotiate the SlOo
600, 600 loan, viz till October, 1873.
6. To pledge and set apart the re, enues
of the markets to pay the interest and
principal of the loan, as required by the
city charter, when debt is incurred e1-
Ceeding 100000,
The first objection of the remOnstrants TO
This measure is one of propriety or taste,
and as such it can not be discussed; but it
may be examined as a question Of official |
sight or duty. If the measure be bad one |
it should not be adopted at all; if q good |
one, and, in the judgment of the Council, |
promotive Of the best interests of the city, |
and within the scope of their powers. they |
should adopt it, though at the last hour of
their official existence. They should act in
such matter as though they were to have
the care of the city's interests and to be re-
spOnsible for its governmental welfare in
definitely In this objection and in the
allegation Of haste there arc the covert
that members of the Council
derive some individual advantage by the
and that their successors will
be more competent than they are 20 Judge
IF the necessity oy expedienQg OF the meas.
Ure in questions
The ordinance Nas Before Tie public and
rnder consideration by the Council week
before it was adopted. This is not hasty
lit be Illegal, the bank runs
.he 3isko not the GityS and the bank may
AXE care of qhats
If the bank has purchased city obfiga.
lions, as is alleged, and mow holds them. it