The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-12-21
PREMIUM BONDS.

Bids for premium bonds will be opened to-
morrow, at noon, at the City Hall. Out OF
the first semi-annual drawing of series OF pre-
MUM bonds $500 bonds Of $40 each were
found to be of those series still uns old. These
are now offered in exchange for any bonds 1of
which the city is liable except premium
bonds The par or face value Of these 3oOO
bonds is SIG, 600 but each bond will not only
bear so cents interest, but will repre-
| sent chance in the drawing OF
| premiums or prizes. what ibis
chance is worth is apparent from the TACT thas
there will be 1176 prizes or premiums, amount
ing to $50, 900, which is equivalent to an aver
age of $40 on each Of the 5000 numbers OF
bonds. There are 1000 premiums of $40
each. 100 Of $50, so of 500, 20 of $500, Of
$1,000, and l of $4,000.
If the city retains any part OF these 3ooo
bonds of the drawn series she will be entitled
to all they draw in principal, interest and pre-
NUNS, and the proceeds will probably be sp-
Piled to the purchase Of old bonds.
The old bonds, which may BE- received by
the city in exchange for these bonds OF the
drawn series, will be registered and preserved
until after the drawing of premiums, SO that
in the event OF Interference by courts or from
any other cause, the Old bonds may be re-
turned to the bidders without the least loss
or risk.
The drawing Of premiums will not take
place before the 18th January, previous to
which it is probable that the General Assem-
bly, will pass any act that may be necessary
to sanction and fortify the Premium Bond
plan of liquidattng the city debt, a plan
which seems 10 have the approval of large
portion OF the people, including very many Of
our large holders of taxable property. 1t is
much 10 be hoped that plan so well calcu-
lated to relieve, for some years, the property
of citizens from great portion OF the pres
ent onerous and really unbearable city debt
tax, q plan which will in twenty-five years
wipe out one-haf Of the city's bonded debt
at the same time that it increases the value
of any bonds which holders may not be will
ing to exchange will m5et with no impedl-
ment to retard or litigation to embarrass or
legislation to defeat it.
1t does not seem, from the general tenor of
the decision of the United States Circuit
Court, ia the case of Maenhaut vs.. New Or
leans, that it will in any manner affect the
workings of the premium bond plan, which
is in all respects voluntary on the part of
the holders of old city bonds. This, however,
is matter on which those interested will
form their own opinions. The city has full
legislative authority for arranging with credi-
tors by substituting new bonds for the old;
but no legislation Can compel tho holders OF
bonds to surrender them for others, nor can
statutes or ordinances impair the obligation
of contract made by the city, as represented
by valid authority, with q creditor. city
bond duly authorized and legally issued for a
valid consideration, is such contract, the
obligation of which will remain binding upon
the city until discharged.
1t is very desirable that process Of Ii
quotation which initiates against no vested
right and which is full of the promise of re-
lief should have . free, fair and impartial
trail. Though not prone to indulge in
sanguine hopes in behalf Of the city, espe-
cially during the past eight years, yet in this
matter we may reasonably hope that after the
first successful drawing Of premiums, the
plan will work smoothly and result in remov-
ing, for series Of years. the greater part of
the annual debt tax, under which the city
now groans and staggers.