The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-19
THE SUPPLEMENTAL FUNDING BILL.

This act, which has received the signature
of the Governor and been duly promulgated,
was an exceedingly unwise and unfortunate
piece Of legislation, and can only rebound to
the injury of the State, as it impairs con-
tract entered into between the State and the
holders of it's outstanding bonds, and looks
like an attempt to cheat those who have
acted in good faith under the law. The bill,
as originally submitted, was an excellent
one, not naming any special bonds
rs questioned or doubtful, giving reprsssn-
tation on the Board and giving to all parties
the right to test the validity of any bonds or
other Indebtedness which might be presented
for exchange for the new bonds. Aprovision
enumerating certain bonds as questionable
was, however, inserted before the final pas
sage of the BILL and the result is the present
abortion, which will give the holders Of new
bonds an opportunity to make money by the
natural appreciation of their bonds, and give
q ring chance to buy up all the old bonds
at low figures to be funded at last.
The Governor was opposed, we learn, to
signing the bill, for the reason, as he alleged,
that it looked like bad faith on the part Of the
State; but was compelled, on the other hand,
to sign, inasmuch as it placed him in the
awkward predicament of declining to sane
ton bill which had passed the Legislature
declaring large number of bonds tainted,
when, if any of them should ultimately prove
to be SO, he would be charged with having
saddled the debt upon the State.
1t is believed that every effort will be made
to have the questioned bonds tested before
the courts in the speediest possible manner.
The following communication from an old
merchant on this subject will bs interesting,
as showing the feeling among the holders Of
old State securities in regard to this bill:
Act No. 3, kno IN as the Funding bill, was
passed, promulgated, submitted to the peo-
pie, and declared to have been accepted by
them as constitutional law. No subsequent
Legislature, in our opinion, can enact any
law reversing or changing any of the funda-
mental clauses OF the said act No. 3. II the
board appointed by the said law to effect the
conversion of evidences of State indebted
ness in new Seven Per Cent Consolidated
Bonds, had, previous to beginning their
labor, taken the precaution OF definitely de-
Gliding through courts what evidences of debt
or series of bonds were undoubtedly valid,
they would have shown themselves careful
and prudent officials, anxious to guard the in
terests OF the State aud the people, and to
prevent the funding of all or any doubtful OF
illegally Issued State securities.
But instead of this, it appears they hurried
through bonds and warrants with closed
doors before anything could be ascertained
concerning them by the public, or any one
outside of their board, issuing new bonds
and burning old evidences at once. There
fore, if any Illegal or doubtful old State secu-
rites were funded at all, it was then and
there done, and We see no means of correct
ing the evil Now, this supplemental fund
ing law putting in question and eDjoining the
further funding of such undoubted bonds as
the board have been acting upon for the past
six months, under the pretext of ascertaining
the validity of said old bonds. is but a sham.
and shame to the State allowing the use OF
the same.
The real intent and meaning of this sup.
Elemental law in SO far as it eDjoins the fur.
ther funding of bonds not SO far rejected since
the opening Of the funding, is nothing but
this. Stop the funding and issuingof new
bonds for ten days or six months or more,
enable ring to sell the new bonds they have