The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-11-15
THE FISCAL AGENCY.

There seems to be an idea extant that the
city could not get along without Fiscal
Agent. and that it is great piece Of condos
cension for bank to be willing to serve the
city in that capacity. Occasionally vague
! hints are thrown out to the effect that should
the city not walk an exceedingly straight
chalk line. and come down handsomely with
bonds or other co.laterals, the Fiscal Agent
| will fly the track, and leave the city stranded
| upon the shores Of bankruptcy and despair.
Now we are Of the opinion that this is simply
the purest kind of nonsense, and that the Fis-
cal Agency would very quickly disentangle
itself from city affairs, did it not make good
ly share of greenbacks by maintaining the po-
sition.
The dealing of the city with the Fiscal
Agency has always been more or less shrouded
in mystery. and few persons if any have a
correct idea Of what the duties of the agent
are. For the enlightenment Of such We may
state that the agency is provided for in the
city charter, which makes it the duty of the
Administrator Of Finance to deposit daily all
moneys, bonds and notes collected by him on
account Of the city. The agent is instructed
to open and keep such special accounts as the
Council may prescribe and to pay from the
funds so deposited all checks which may be
drawn by the Administrator Of Finance and
shall make weekly reports to the Council Of
the amounts deposited to the credit of the
several accounts, the amounts paid out from
each and the balance remaining on hand.
The duties Of this mysterious agency are
therefore very simple and clear, and if the
public had been permitted to see the weekly
statements furnished by the Bank they would
now be in better position to judge of the
propriety of the Council taking extraordinary
measures to guarantee the payment Of money
which it is alleged has been advanced to keep
the city from going to protest.
We are not among those who believe that
the bank has made any special sacrifice for
the benefit Of the city, and are rather inclined
to adopt the contrary belief that the city has
has made some very considerable sacrifices in
behalf Of the bank. This is why we think So
Soon after the Inauguration of the present
Council, the Louisiana Savings Bank applied
to be relieved of the Fiscal Agency. This
bank held about 100000 of City Securitie
vis: Mortgage on Water Works, 100000 10
per cent bonds, issue Of 1869, and the remain
der in certificates Of Indebtedness bought as a
speculation by the bank, say $4,000 worth.
These certificates had been issued by Mr..
Alfred Shaw, Administrator Of Public Ac-
counts under the previous administration, who
made it condition in the ordinance that
they should be redeemed by the city IN the
order in ,ohich they mere issued
In the arrangement for the transfer of the
agency to the Louisiana National Bank the
city assumed to pay the certificates of indebt-
edness, say s33O,OOO, with 8 per cent per an
NUN interest and gave as collateral 10 per
cent City Bonds. The payment Of the mort
gage was secured by the transfer Of the
revenues of the markets.
Thus it will be seen that at the very outset
the Council made very extraordinary sacri-
fee for the benefit Of the bank, and violated
the very ordinance under which the certif-
Gates alluded to were issued, in order to pay
tine bank par therefor and per cent interest
until paid. The other creditors of the city
who held these or other certificates may have
thought this very unfair and peculiar
arrangement, but then they could not all be
Fiscal Agents, and SO, Of course, had no right
to complain.
1t appears to unsophistcated citizens that
upon the strength Of the very handsome mar
gin made by the bank. in this proceeding. it |
might afford to be very liberal with the city,
and pay considerable amount of saccruing
interest, without asking for too much in the
shape of security or collaterals.