New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-11-08


other advantages which cost the city
nothing, but which are valuable TO the
bank, viz. : the extension for six months Of
its term as negotiation of the loan, and
specific contract to continue tie bank as
Fiscal Agent of the city for a period OF tive
years. The fiscal agency exists by law of
the Legislature: and it matters little to the
city what bank holds it SO long as the bank
selected performs its functions and the clty's
funds are safe in its keeping With regard
to the other advantages conferred, 1t seems
but lust that the Louisiana Savings Bank
should have an extension of time as negO-
tiator of tie loan, so as 70 reap the benefit
Of the ctv's credit. which it is believed will
be greatly enhanced by its restoration 10
cash basis by means of the loan now made by
the bank itself to the city. Although it il as
serted that loan might be obtained upon
better terms no one except this bank has
made any proposal, though everybody has
known the extreme wants of the city for
months past.
The next objection, that the ordinance
did not specify who should decide to whom
the monthly cash payments should be
made and the complaint OF the injustice
done the holders Of convertible certificates
by the postponement Of the conversion a
year, seemed well founded. called upon
the bank for reply to these objections, and
the answer of Mr.. Van Norden, hereto APP
pended, removes the objections and sets
those matters right.
The objection that the bank is a new and
weak bank would be important if it were
borrowing from the city instead of lending
to it. The bank is sufficiently strong, so
far as the city is concerned, if it furnishes
the money as it stipulates to do, There
is no danger of embezzlement of the securi-
ties placed in its hands. 1t can not run
away with the markets, and the other secu-
rites are not worth as much as the amount
of money loaned on them.
The last objection to be considered, is that
the loan is inadequate to place the city on
cash paying basis believe that 1t ls
adequate, if the ordinance be carried into
full effect. 1t pays off $45O,OOO Of the
$500. 900 of city obligations now Outstand-
ing, leaving only $35O,0O0 receivable fo1
taxes. have no means of knowing how
many police and school warrants there are
out. They are estimated az $350.000.
believe they are less. Add for police and
school warrants and certificates on existing
contracts. etc. allowed to be issued by cx'
ception In the ordinance-$I50,0 900 a month
for four months, 100000. Add also the
amount out as before stated, S35Os00Q. and
we have total Of 81 100000.
Taxes and licenses. III the meantime. pro
duce at least s., O00,O 900. The $4,000 cash
per month is running into debt SO much;
and it is amply sufficient 20 meet necessary
expenses not otherwise provided for antil
next years tax is due and collectlble.
Meantime. the outstanding appropriation
certificates, police and school warrants not
provided for by the loan, and those TO be
issued under the exception in the ordI-
nance, will necessarily be raised nearly or
quite to par.
Yapprove Of the ordinance and have signed
and promulgated it because it affords ways
and means to put the city on a cash paying
Udsl5 DttdusS INC 4LtGlSbh paw ACA AIC
money is low, the securities required rea-
sonable and safe; because il saves to the city
$4,000 to $4,000 month, which it now
loses by the depreciation of itsp paper obliga-
tions. and as much more in the aggregate
to the teachers and other employees Of the
city: and because it Injuries no one who has
right TO complain.
BENZ. +. FLANDERS. Mayor.
The letter Ut Mr.. Van Norden, above re.
ferged to. was as follows:
LOUISIANA SAVINGS BASES.
No 81 Camp street,
New Orleans October S9, 1872.
Hon. s 3. gianGers
Yours with question in regard 20 our I'M
deIstanding Of the manner in which the
cash to be advanced by this bank. under
proposition made by us. is to be used. is re-
Ceived.
In reply nave 70 say that we intended
the moneY.to be paid by order Of the Ccur-
Gil for such purposes as the Council may
decide. TO the amount OF Sl25O0O agreed on
| would also add that, in regard to the
exchange Of the new bond for warrants
already issued the ordinance does not
touch. upon the matter. The bank. hove
ever, has ordered the bonds printed, and
they are being pushed forward to compile.
ton, and VIII be issued in about sixty days
or sooner. W. VAN NORDEN.
President.
SIR. Cockren, offered the following reso.
luton:
Reso!reG, That the message Of the Mayor
relative to the Fiscal Agency. presented at
the meeting of the Council held November
5, 1872, with the corrections this day made,
be and the same is hereby approved by the
Il Al
isiana Savings Bank, as declared in the let !
ter of MIR. Van Norden, president. accom-
panying the message aforesaid, is hereby
accepted and recognized as the true mean |
ing of both parties relative to the subject
matters referred to in such communication. |
The yeas and nays were called on the |
passage of the resolutions
Yeas-Cockreme DeIassize. Remick, lewis. |
Walton.
Nays-Shawo Bonzano-;s.
The resolution was declared adopted
Sir. Cockrem moved to reconsider the |
vote by which the resolution had been |
adopted.
Mr.. RemicS moved 80 lay that resolution
IN the table.
The yeas and nays were called or Che |!
question OF tabling the resolution.
Yeas-Walton, Remick. Delassize. Goes.
emf. /
Nays-iewis, Shaw. |
Mr. Bonzano declined to vote.
The resolution to reconsider was tabled.
Tax Collection.
SIR. Bonsan0 called ~ the following o.tlj
lance: