New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-02-12
COUNCIL OF FOREIGN BoEDHoLDERs.

| COUNCIL OF FOREIGN BOEDH0LDERs
An organization Boosting the above ap
pellation, purporting to have domicil'
in London, has favored Governor Kellogg
with threat in case the financial polio.
| Of the State is not shaped accord
ing to their notions of their own in
terests. The correspondence is dated OF
the twenty-fourth ultimo, the day of thu
approval of the funding bill. and is II
substance as follows:
Council (of foreign bondholders) will, il
funding law passes. be obliged to exclude
Louisiana from every money market.
The meaning of this threat is that Il
this State adheres TO its expressed inten'
ton to offer its bondholders sixty per cent
Of the amount for which they are its cred
itors, no more Louisiana bonds shall be
sold in any OF the money markets Of the
world.
So far as the exclusion is concerned. it
will have no practical effect as we have
fully resolved not to appear anywhere as
borrower. 1t is. therefore. of little or no
consequence. Yet it is right that de-
cent excuse be given for SO high-handed
an exercise of State sovereignty as is i'm
piled in scaling down the debt 20 six
tenths of its face value. The act has been
done by the Republican party. the ma
jority Of whom, it is true, are not property
holders, and do not pay taxes directly TO
the State. Yet those who do not own
property are hard working, honest, but
poor men, who labor for those who do.
And they have already been subjected to o
reduction Of wages, upon various pleas,
not the least important Of which is that
the taxes are burdensome. In this way,
it will be seen, the non-property holders
are affected proportionately with their
more wealthy employers. BY means Of
shiftlessness and extravaganza. the debt of
this State has been swelled TO immense
More than q million and
half for interest, is demanded every year
to keep up the drain out Of the State for
these same foreign bondholders. The
complaints from taxpayers all over the
State, from men of every shade OF politi-
cal sentiment have been loud and sim
cere. Il has been decided with as
much unanimity as it is possible to
obtain without formal popular vote
that the property of this State can not
any longer stand such pressure, and in
spirit bordering on desperation PROPOSE
ton of partial bankruptcy has been made.
The terms named in the funding bill will
be faithfully complied with so far as the
State is concerned. The foreign bond
holders will be admitted to the same priv
ileges as are accorded to native citizens.
Any attempttc force the State to recon-
slider its action will necessarily be futile,
as provision for payment Of interest on
the new bonds only has been made or will
be. To rule our bonds, old OF new. out
of the money markets of the world may
seriously affect the interests Of those per-
sons who hold any for sale or pledge. but
can not injure State that has expressed
a determination not to enter any market
as borrower.
Again, we observe that some Of these
foreign bond holders have applied to the
United States Circuit Court in this city
for an order of injunction against the
funding commissioners. They, too, should
that they can only injure them
selves and other bond holders. If they
succeed in destroying the law which i'm
poses a tax of five and a half mills on the
dollar to pay interest on six-tenths of their
claims they will have nothing left to stand
1pon, as all other interest tax has been
and no money will be appro-
oriated out of the treasury to pay the
coupons on the old bonds. If it comes
% conflict. in which angry passions are
reused on either side. it may result still
worse for these foreign bond holders thar
S now complained of. and they may be
tut in the category of the holders Of rebel
ponds.
If this protest be really authorized it
GEMS to us to have come too late. 1t |
to have been agreed to in Lon
lon on the twenty-fourth, but We never
aw it until about eighteen or twenty days !
fterward. Governor Kellogg did not I
robably receive it in time to act upon it.
ven if he wished to do SO. We think it
yould have made no difference. for the /
Whole question was carefully considered,
nd all its possible effects upon the money
larkets fully understood in advance.
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