New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-06-02
Funding the state Securities.

Governor Kellogg has received the fol-
lowing letter from Congressman Morey, in
which some important suggestions are
made concerning the action Of the board of
liquidation in providing for the settlement
of past due interest The suggestions made
by General Morey are well worth their
attention:
HOUSE OF REPRESENTATIVES
Washington, D. c., May u, 1874.
Governor ". P. Kellogg, Chairman Board of Liuui-
datiOn, State of Louisiana:
SIR notice in the official journal a
statement from you that, on and after july
1, 1874, the board will be prepared to ex-
change old bonds for new, and at the same
time pay the interest due January l, 1874
As the act under the provisions of which
this exchange is effected was, either inten.
tionall or by accident, left very vague, in
consequence of which gross injustice has
already been done, by the want of any pro-
vision making proper discrimination be.
tween the Elk, seven and eight per cent
bonds of the State. Allow me to suggest
that tor the good name of the State, as
we'll as in Justice to all parties
affected, and to prevent the suspicion
of deliberate unfairness of action which
would, abroad as we'll as at home, throw a
cloud upon the honesty of intention ON the
part Of those having the financial honor of
equity should be applied in the absence of
statute provision, in dealing with the hold
ers of all classes of our bonds. Now as you
are aware, some Of our bonds have coupons
due on the first Of January, others have
coupons which have earned two, three or
four (or even more) months of interest on
the first of January, 1874 Now to pay in
cash the coupons fully earned sand to pay
those partially earned in some other way
would be manifestly unjust. 1t is true,
owing to a recent great disaster that taxes
to the credit of the ''past due interest fund.-
may not have been collected to an amount
sufficient to pay all interest now, but let all
be put on the same basis and let warrants
or certificates be issued for such portions OF
the coupons partially earned but not due
in January, 1874, which certificates shall be
paid out Of the first money coming into the
treasury to the credit of that fund. In this
way no distinction will be made. and during
the year the certificates will all fully be re-
tired by the collection of back interest. Thus
tar your efforts in behalf of the honor of the
State, while at the same time you have
sought to relieve an overtaxed people, have
been appreciated as fast as your action was
properly understood, and l am glad to be
able to say that abroad as we'll as at home
you are beginning to receive the credit
properly your due for the sagacious financial
policy you have pursued. 1t is for this
reason present to you the equities las
consider rhem) OF the matter of whichsI
have written, having but the slightest per
sonal interest in the question, but realizing
to the fullest extent in the present exag-
gerated sensitiveness of capital, the necessi
ty for the practice of the broadcast equity
by your board in its dealing with the public
to the end that the confidence now felt in
your financial administration may not be
weakened. Yours truly,
ERANE NOPEy