New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-11-07

as dscaI agent and negotiation Of the Joan
! The former the bank already has Cor ave-
years by law and the latter fog six month
By an existing contract Until.the expir
alton Of these periods the agency could no
! be taken from the bank or given q
another. The fiscal agen: exists by law q
the legislature and pays nothing to the city
for its position, and il matters little to the
! city what bank holds it SO long as the bank
selected performs its functions and the city.
funds are safe in its keeping. 1t is but just
that the bank SHOULD have an extension Of
| time as negotiator of the loan, so as to reaI
| the benefit OF the city's credit, which it is
believed will be greatly enhanced by its res
toration to cash basis by means Of this loan
now made to the city. Although it is 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 objections, 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 their conversion a
year, seemed we'll founded | called upon
the bank for reply to these objections, and
the answer Of Mr.. Van Worden, 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
1t is sufficiently strong, so far as the city is
concerned, if it furnishes the money as it
enlbezzlement of the securities placed in its
hands. 1t can not run away with the mar
ketso and the bonds are not worth as much
as the amount Of money loaned on them.
The last objection 10 be considered is that
the loan is inadequate 90 place the city on
cash paying basis. believe that it is
adequate, if the ordinance be carried into
full effect. 1t pays off $45O,00O Of the
100000 of city obligations now outstand'
ing, leaving only $3.50, 900 receivable fot
taxes. have no means Of knowing how
many police and school warrants there are
Oute They are estimated at $350,O00. !
believe they are less. Add for police and
school warrants and certificates on existing
contracts. etc.o allowed to be issued by exc
Geption in the ordnace. $4,000 month
foe four months. $6O0,000s Add also the
amount OuS as before stated, $3.50, 900, and
we have total of $i,3OO.000o
Taxes and licenses, in the meantime. pro.
duce at least $4,000 The $4,000 cash
per month is running into debt SO much.
and il is amply sufficient 90 meet necessary
expenses not otherwise provided for untiI
next years tag is due and eollectible.
Meantime. The outstanding appropriation
certificates. police and school warrants not
provided for by the loan. and those 70 be
iss ned undeg the exception in The ordl-
nance. will necessarily be yaised nearly OF
quite TO par.
! approved OF the ordinance and signed
and promulgated it because it affords ways
and means to gut the city OF a cash paying
basis because the :nteres: paid Tor the
money is love- the securities required Gea.
:onable and safe: because !: saves the city
$4,000 70 $4,000 month. which It now
oses by the depreciation of its paper obliga. !
ions. and as much more in the aggregate
o the teachers and either employees OF the |
ity: and because it injuries no one who has
Ugit to complains
BENZ. F. FLANDERS. Mayor.
The letter OF Mr.. Van Hogdena above re.
eg.ed to, was as follows:
LOUISIANA SA.I.J.s B.SKs,3 I
No. 81 Camp street, ; |
New SG.eaSS, CCoUJeS %, oG.S. I
Ion. Z 7. Flanders:
Yours with question IL regard to our tre
eystaHding Of che manner in which the
ash to be advanced by this bank. under
r0p0sltion made by III. IS - Ge used. IS ZEE
eiy4d.
In reply have 20 say that we intended
le money to be paid by order OF the Ccuno
/! for such purposes as the Council may
ecjde. to the amount Of $!25, 90. agreed on.
would also add that. in regard to the
lchange OF the new bond tor warrants
ready issued, the ordinance does not
uch upon the matter. The bank. how.
-ero has ordered the bonds printed, and
ey are being pushed forward to compile.
IN. and wi!1 be issued in about sixty days |
s0oney. W. VAN %ORDEN.
President
The message ana accompanying commu.
cation were received and ordered printed:
Reports rrOnG the Treasurer.
Mr.. Walton presented lis monthly report
follows:
,NGHLT RE?oHs or ADMINISTRATIONS OF
FINANCE GoE H0Ng!6 ENDING OCTOBER
81. 1872