New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-02-06
NEW ORLEANS REPUBLICAN, FRIDAY FEBRUARY 6 1874

| nave Lou mere. our C6UC Is measure Div
| represented by splendid and wealth-pro.
| ducing improvements. For our debts we
| have almost no improvements, the chief
evidences of the xpenditure-notably that
| portion incurred since the war-being the
| visits of the tax collector.
! reiterate the declaration in nv mes.
| sage, that the people of Louisiana are will
| ling to pay every dollar OF their just debts
that they are able to pay. may add that
they are equally determined not to be
forced into bankruptcy. They have made
to the world bona tide exhibit of their
abilities, and are willing to give every pos
sible guarantee that they will pay accord
| iDgly You speak Of what you confidently
| assume to be a temporary impairment of
our ability. | beg to remind you that more
than one-third of our bonded debt was
created before the late war, when the slave
property in the State constituted more
than half the assessment, and half the
security on which those bonds were pred-
Gated. That portion of the security is not
temporarily impaired it is annihilated.
Since the war other values have decreased
so much that the remaining security for all
bonds is seriously impaired. Wherein then
does our case differ from that of the debtor
whose assets have deprecated through 10
fault of his, and who tenders to lis credit.
ors, in settlement, all he is able to pay! Our
equally concerned-is to Tighten our bur.
dens, and arrest the decay of our assets
You ask. what assurance creditors will
have that our bonds may not be again
funded al still further reduction! | an
swer by referring you to the bill itself l
am satisfied that the people can and will
cheertully pay the FAX provided for therein,
and do not hesitate to assure creditors,
that The bonds authorized by the bill will
ha ,@laI bnn 81
ar. no: thus rendered unquesticnabie. il
will be impossible for the State of Louisi.
ana 70 make a good bond. With the pros.
pect OF diminishing taxation before the
people, believe all our interests will be
stimulated into new lite. and that we NAV
reasonably hope for an era Of permanent
and Increasing prosperity. But. while the
present status continues. with financial rum
impending. your exhortation to the people
to maintain their ''honOr and credit" by
paying your bonds in full. is a species of
mockerv not calculated to secure !. temper.
ate consideration of your claims.
! have pursued the argument thus far on
the presumption that the bonds you hold
are valid and unchalleDged. l. however,
have information, which believe to be re.
liable, 20 the effect that several of the gen.
tlemen who have signed this protest. if not
the majority. mold bonds of one series only.
nooga railroad bonds. which are popularity
believed {, be tainted with fraud, and are
now under investigation in the courts. Am
uncharitable if ! suggest that this may in
part account for your declaration that you.
las American citizens, felt a sense of shame
on reading these tmyt recommendations in
the guise Of a funding bill!'
Two and a halt millions Of these
bonds were issued without any o.: the
safeguards required by law. The bill
providing for their issue was hurried
through the Legislature during the
las: hours of the Session. II was kept by
my predecessor Tor several weeks. and was
finally signed one day. promulgated the
next. and the bonds issued the next. They
We're delivered by the Secretary Of State
at his house in the Z ght without the Gov.
ern"r's signature. the Secretary of State
having been required iirs. 10 sign them and
attach the seal of Safe. They were signed
by the Governor in a hurried and surrepti.
tioUs manner and immediately removed
from the State. !. is even asserted. and | |
believe can be suhstantiated. that they
were signed on a train of cars between
this city and Mobile. No record wa. made |
Of the issue of these bonds in the Offices |
where the law directs such records to he |
kept. nor does such record now exist. Only |
q fac smile of the Treasuver's signature |
was attached 10 them.
The State has received no consideration |
for these bonds. II is believed they were |
rot originally purchased in good faith. !
though l may 90 you the Justice u ,
lay 1 do not know that you became
possessed o. them in any other way.
In truth. some o. them were not purchased |
1t all. but Were distributed as The proceeds
and in aid @: 4 scheme o: plumber. Some
were paid away under previous arrange
lrpy 70 q T. "a ~. 10 Of |
he act under which they were issued. and
'thers were turned over 10 person. AZ that
ime connected with a leading conservative
ournal OF this city as the price Of the silence
" covert support of that paper.
l 40 not wish to do you injustice. II |
M correct in ny supposltion IN regard 20
he class Of securities you hold. / submit,
hat you are justly open TO the charge OF
eeking by an os.entatiOus show OF hos |
lily 20 the :unding bill. to secure for your
'ond> an exemption from that scrutiny
which thev vii! receive i: brough, within
ne provisions OF the funding law. Whi.e |
here is no thought on the part OF the gov.
rnmen. represent OK impeding the coilec.
ion Of just claims against the State. the op-
osit!on to the funding OF doubtful bonus
VII 10: be relaxed until their validity
hal! be frs: established in TIE courts OF
as. resort.
A'' ui ccU tHc passage y! III" iuNGllg |
ill. believing it 70 be an imperative neces-
.ty. and the best and flares: adjustment |
u all parties that - was possible to Ob.
ain. III this believe | am sustained by !
ne ajority OF our most me,itorious cred.
Ors, and by the almost unanimous voice of
le people: and since the bill has become a
w, propose TO spare no eXe-tion 20 Sc
are the results contemplated.
have the honor to remain. gentlemen.
cry respectfully. your obedien. servant.
WILLIAM z. KELLOGG,