New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-09-30
TIE ACTION OF FOREIGN BoNDEoLDERs.

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cular issued by the council Of foreign
bondholders in London. The object Of
the publication is to express dissent from
| the action of the Louisiana funding board,
and reafirm the determination Of the
bondholders 70 adhere to the resolution
adopted by them On the twen:y-ninth OF
July. of which the following is copy:
That the bondholders unanimously re.
solve that they adhere to their protest, and
will not accept the conversion proposed by
Governor Kellogg. ccntiscating forty per
cent of the capital and interest OF their
bonds.
The circular than proceeds to say:
This resolution was duly advertised in
various English and American papers.
The council have been informed that the
funding operations of the government of
Louisiana make slow progress. The fund.
ing board has decided to fund forthwith all
bonds issued before the war, and has also
passed the following resolutions:
Resolced. That the board will now proceed
to exchange all valued bonds and obliga.
tons of the State as fast as the same may
be deposited with the fiscal agent and ap-
plicatIens to exchange be made.
ReSolred, That the resolution by which it
was agreed that the interest coupon due
January /, 1874, shall be paid in currency,
and the coupons partially earned, bu. no:
yet due, January, 1874. should be funded at
par. be and the same is hereby repealed
and annulled: and in lieu thereof, be it re.
solved, that the coupons of old bonds due
January. 1874, shall be paid ia currency.
and the coupons Of old bonds partially
earned January, 1874, bu: no: due at the
Oh ha 4 cd NV,
tho holders thereof before exchanges, and
the amounts of said interest coupons that
were earned January I. 1874, shall be com.
puted by the Auditor, and he shall! issue
his warrant therefor. which shall be paid
out Of the three mill interest fund SO fast
as collected from taxes due and payable
prior to January !, 1874, or which may be
funded as other warrants or obligations are
funded, for which purpose they shall be
considered AZ a part OF the bond and the
value thereof for the purpose OF exchange
increased accordingly.
In inviting the attention Of the bond.
holders to these resolutions, the Council
and committee consider it desirable that
the bondholders should adhere to the
course of action decided upon at their meet
ing on the twenty-ninth July.
This is equivalent to {. veto Of our fund
ing bill. SO far as the London bondholders
are concerned. and tota! rejection Of
the proposal to exchange.
The next question for consideration IS
what measures are to be adopted to give
force and effect to the resolutions of these
bondholders? Louisiana has in reality
committed an act Of bankruptcy. an
offer of sixty cents on the dollar to bond
ed creditors is made and rejected. As
there is no visible way to make the State
pay more than it has offered, and but
little prospect OF any change for the bet
ter in the determination Of the State. we
can not easily suppose what course they
can take that will accomplish their wishes.
American holders of abou. one million
dollars Of these bonds have already &C.
cepted the provisions Of the funding act,
and it is likely the rest will follow their
example. Foreigners have no superior
claims. either in law or equity, to Ameri-
can citizens in this matter, and we sup.
pose they can not do better than follow
the same policy. or at least sell their
bonds to those who are willing to ex-
change them. We con see no other wav
open to foreign bondho!ders to get any
thing.