New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-25

- 20 :
Failing to dispose of the bonds by sale
as provided by law, the levee commission
ers applied to the Auditor and Treasurer
trhe Legislature not being in SESSION., fol
an exchange of bonds for an equal amount
OF State notes.
The exchange was made, and 500. 600 O
State notes we're Issued, in exchange TO-
500 600 of bonds, which exchange was rati
fed by act No. liz OF 1867, entitled IAN act
making appropriations to the board of leves
commissioners for levee purposes" Sever
hundred thousand dollars of these bonds
were then placed in the posses ion of the
State Treasurer, and there they remained
until act No 35, entitled ian act to author
Ne the return of $3.50, 900 from the genera
fund to the levee and drainage fund, and t.
appropriate the same for levee purposes,
approved March l. 1867, was adopted. Tue
second section OF this act provided tia,
should there not be funds in the State treas
ury available for the purpose OF this act, the
Auditor and Treasurer were authorized to
borrow, for sixty or ninety days, $l5O, 900
and to pledge as collateral security for said
loan so much as might be necessary of these
S70O,OO0 OF bonds. Again. under act No. 80
OF the same year, entitled ian act to author
ize the Auditor and Treasurer to borrow
sou, 0OO," the same powers were given to
these officers, and loan was effected by
pledging some of these bonds. On the
twentyeighth of March. 1867, joint resolu
ton No. l22, entitled Joint resolution max
ing appropriations for the protection OF
levees in the State" was adopted, wherein
the State Treasurer was authorized to
pledge the bonds of the State snow in the
treasury" to secure loan of $3.50 600 The
loan was effected for the purpose specified.
The bonds referred to in the joint resolu-
ton as now in the treasury" were The I'M
pledged portion Of the series OF 81 zoo. 900
authorized by the act OF twenty second
December, 1865. above referred to. But the
Legislature had, two days before the pas
sage Of said joint resolution. adopted act
No ll6, which repealed the said act of De
cember %, 1865, and directed the bonds
to be Cancelled and destroyed. None of
these bonds were destroyed or can
celed. Those which had not been pledged
were subsequently pledged for
further loans. And when the various loans
became due, the State failing to pay them,
the bonds were all sold to pay the loans,
and Melted about thirty three per cent. This
81 .000, 900 of bonds are all out, and add SO
much to the debt of the State.
IL. $4,000.000 LEvEE BONDS.
Act No lis, entitled IAN act to provide
means Tor the construction of levees, by
the issue of bonds of the State for $4,000.
700 and to provide for the redemption Of
the same" approved March &c, 1867, au-
thOrized the Governor to issue bonds of the
State to the amount of $4,000, 900, payable
n forty years, bearing six per cent inter
sst. payable semi annually. These bonds,
Ill dated May l, 1867, were subject to the
'rder of the board of levee commissioners,
who were authorized by the second section
If ba la tn tho
If them, at not less than eighty per cent, at
uch time and in such manner as they might
leem expedient. In default of sale. they
we're authorized to pledge them for any
Dan they might effect. A detailed state,
nent from the books of the treasury de-
,artment shows that 2il4 of these bonds
we're regularly issued from time to time to
contractors and others, at eighty cents on
he dollar.
In order to dispose of the remaining 1886
onds, the Legislature of 1868 passed an
ct mo. 1881 appointing the Governor,
treasurer and one member of each house
f the General Assembly committee to
ell these remaining 1886 bonds, with power
0 dispose of them at such price ''as might
0 them seem most to the public advantage
nd interest" They were further empOw-
red, by the second section of the law. ito
xchange any portion of said bonds at
,arket price, for Auditors warrants issued
nder authority of the then General Assem-
ly." The law further provided that one-half
the proceeds of these bonds should be
laced to the credit OF the general fund. and
ne-half to the levee fund.
The report of that committee. made on
lie twenty fifth Of February, 1869, states
lat the 1858 bonds netted 1891 900, or
bout tifty-twO and one half cents on the
ullar.
:. BONDS FOR REDEMPTION OF CERTIFY
GATES OF INDEBTEDNESS.
BY act No. 5 entitled San act to author
e the issue of certificates of indebtedness,
nd of bonds for the funding of the same"
pproved February 9, 1866 the Auditor and |
reasurer were authorized to issue 81, OOO.- !
70 of certificates Of indebtedness, COM |
only known as State notes receivable for |
i dues to the State. The full amount |
by law was issued.
BY the third and fourth sections of the |
me act, and in order to fund these certiti |
ties, if necessary. bonds were authorized
be issued, payable forty years from their
spective dates, bearing six per cent per an
I'm. No bonds were ever issued under this
It, hut the Legislature of 1870 (extra SEES
Dnl. by joint resolution No. 10, authorized
q Governor and Treasurer, and in fact
l
ne such loans of money as might b.. neces-
ry to provide for any deficiency in the
easury, TO meet the interest on the State
bt. The third section CT the resolution
Ithorized the Governor to pledge a suffi
ant number of bonds of the State, pro-
ded for by the act first quoted whenever
would effect loan. On the twenty
venth of October, 1870, the Governor
edged to the Citizens Bank of Louisiana
70 hundred and fifty of those bonds of
600 each for loan of $l25,O00, which
Mount was paid into the treasury IF the
ate to the credit of the interest tax fund
This pledge was forfeited, and the bonds
re sold at private sale (although The act
luired them to be sold at pubic auction
the highest bidder) at sixty four cents
the dollar, and the proceeds, after de-
cting interest. expenses, etc, say
1899 80, were paid into the State treas
y on the twenty ninth December, 1871,
d applied as above stated.
ISSUE OF STATE BONDS TO PAY CERTAIN
DEBTS.
By act No. Is, approved February -,
30, entitled "An act to authorize the issue
State bonds for the purpose of paying
tain debts,' the Governor was author
d ito cause to be issued from time to |
ne, as the wants of the treasury may re-
ire ii. bonds to An amount not exceed
, 81 100000"
The second section directed that the
ads which might be issued under this
J, and coupons attached, should be made :
yable to bearer, the rate OF interest not
exceed six per cent per annum, payable
nj annually, and the boLds be pay able at
expiration of twenty years.
The third section authorized the exchange
said bonds at not less than their par | ,
ne, for overdue coupons of interest OF
bonds of the State then due or maturing
1867, or for outstanding warrants issued
the Auditor, to meet appropriations ,
eady made. The bond book in the ,
ditor's office shows that there wer.-
hanged for past due bonds and coupons. S g7S 800
by order of Governor Warmoth ten ,
bonds of $500 EACH at fifty cents on =