The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1874-01-30

WALL STREET PROTESTS. AGAINST
KELLOGG'S FUNDING SCHEME.
Propositions of this sort are not I'M
common in the business relations of
man with man in private life, but it is,
perhaps, needless for the undersigned
to observe, such propositions in private
life are never accompanied with detail
ed evidencies of the entire solvency OF
the individual making them. When
they are made under the show OF I'M
fortunate and uncomfortable circunl-
stances, they may be offered without
any dishonor; but, inasmuch as they
necessarily imply an imperfect ability,
united with a perfect willingness, to
meet the financial obligations of the
individual who offers thell, they meas
urably impair his credit. Were it
demonstrated that the State Of Louisi-
ana is reduced by the unfortunate
effects of an incompetent Administra-
ton to make such propositions, they
would lower, indeed but not absolutely
destroy her credit. But State which,
after proving by her Executive her
perfect freedom from any necessity
compelling her to make such PROPOSE
tons, should insist upon their accept
ance by her northumberland as they
are from taking any such measures in
maintenance of their rights as would
be open to them in the case of a private
debtor-would justly forfeit her stand
ing in the financial world. The guilt
of such unnecessary and even wanton
reputation would be almost without
parallel, and we cannot believe that
the citizens of Louisiana will incur it,
and thus destroy at one blow well
earned character for scrupu1ous honesty
| which their State has hitherto borne.
AS the Governor himself most truly
observes, there really is no difference
| between forcing creditors to take less
than we can really pay, and repudia-
ton.
His Excellency the Governor, indeed,
in making these recommendations,
even admits that it has been suggested
to him "hy the New Orleans Chamber
of Commerce, and by many private
individuals, that the State debt might
and should be funded at lower rate
than sixty cents on the dollar, viz-1ifty
cents, or even forty"
If, in the face of such an exhibit as
the message makes of the ability OF
Louisiana to pay its debts, his more
considerate recommendation should be
/ dCIeu upon, anu IuC SIcultOlS III 1IOu1S1.
ana be forced to-day to elect between
sacrificing forty per cent. or what secur-
| ity could be given to the financial
world that Z future less scrupulous
Executive, acting in conjunction with
a future less honest and sagacious Leg
islature, would not enact new bills re-
ducing anew the value and imperiling
afresh the obligations Of the Common
wealth?
| 1t is true that after displaying in de-
tail the favorable features of the finan-
cial condition of Louisiana, the Gov
ernor, in that part of his message which
| embodies the recommendations now SO
earnestly deprecated by the undersign-
ed, speaks Of the burdens borne by the
people Of Louisiana rs severe and veX-
atious. The undersigned are at loss
to reconcile the strength of expression
with which these burdens are thus in
general terms alluded to, with the e;>.
act and specific evidences Of financial
elasticity and power elsewhere set forth
in the same message.
The Governor also refers to the pre-.
sent deprecated value of the State debt
of Louisiana as reason why the State
should not eventually pay par for its
; obligations. The moral perceptions OF
that debtor must be perverted indeed
who uses the outward sign of his warn
ing financial standing as an excuse for
refusing to pay his creditors.
But it is impossible for the under
signed to doubt that the intelligent and
responsible citizens of Louisiana, upon
q full review Of the true force and nee
| cssary consequences of such action as is
recommended to them, must see that
any burdens ncccssitated by the exist
| ing and legitimate debts of their Com
monwealth, must be light indeed and
easy to be borne in comparison with
the shameful and ruinous destruction
of the public and private credit and
character of their great State, and its
citizens, which tho adoption of Gov.
Kellogg's recommendation would
entail.
NEW YORK, January IS, 1874.
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