The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-10-27
THE FUNDING BOARD AND MISSING
COUPONS.

To the Editor Of the Bulletin:
Under this heading the Times, of Wednes-
day, the Goth inst, had Q long, ably written
article, which was deficient, however, in SO
far as it did not fairly argue the question.
The writer of said article is certainly in
error when he says: They (the coupons)
will be used and abused to undersell the new
State consols, because in all respects they
are legally as Ualid as the bonds which have
been funded and from which they were de-
tached."
on old bonds for interest subsequent to Janu-
ary l, 1874, and plainly states that, from an d
after the passage of said act, the State will
pay no interest coupons but those pertaining
to the new "a consols. Hence, so long as
Act No. Of 1874 remains an organic law Of
the State of Louisiana, we fail to see how the
coupons (of any old bonds) subsequent to
January l, 1874, can be made legal and valid.
We fail to see how such coupons, which are
neither payable nor convertible under pro-
visions of Act of 1874, can in any way float
about on the market and depress the growing
confidence in the new consolidated bonds.
We fail to see that any capitalist, here or
abroad, will be foolhardy enough to buy or
speculate in coupons SO plainly declared null
and void by Act No. 3 of 1874. i'i-" t@i1 ,
the annulled coupons will, as rule, Away s
be abandoned by the bondholder presenting
the principal for conversion; and if not, it will
be owing to the fact that they were accident
ally lost or mislaid, as no one will care to re-
tain q valueless paper. : - & 81 g
The depreciation of our State seven per cent
consols, and want of confidence in same, is
not caused by such reasons as pointed out by
the Times article, but by the remissness of
the board in performing the work as required
by law, with diligence and regularity; by the
injudicious and sometimes arbitrary rulings
of said board; by the Interference Of the sup
Elemental, which in justice should be named
the "detrimental act;" by the long and I'M
necessary delay in furnishing to bondholders
their new bonds, thus depriving them of the
encashment Of interest on same for weeks and
weeks, and this because signature is miss
ing. etc., etc.
And now, if the limit of SIS, 900, 900 is
reached or over-reached, it is well known that
it will not be owing to any irregularity or
fraud to be committed now, when only bona
fde creditors are presenting their securities,
and the conversion is done in public and
with due care and attention, but it will be
owing to the fact that when the board was first
organized and the conversion was performed
within closed doors, many warrants and Sc
Ramor says should not have been received
and which were not entitled to recogni. ion
and conversion.
In another and subsequent editorial of the
Times we read:
"His (Mr. Estilete's) presence on the
board was advocated by the Times, ETC., be-
cause it was hoped it would prove barrier to
acts of that body detrimental to the interests
of the State.
Rather a poor compliment to the other
members of the board; but we agree with the
Times that Mr.. EtileNe's advent was well
coined by the Conservatives and we contend
that this gentleman, while ever performing
his duties faithfully towards the States inter-
est, has at the same time shown courtesy,
sense of justice and equity to the bona tide
creditors of the State for which the repre-
sentatives of said creditors are very thankful.
Whatever may be urged against Mr.. Es-
tlette, the State owes to him the best rule
ever passed by its Board Of Liquidation-id
est, that which required a careful examination
by competent experts of detached coupons
before they be admitted to conversion.
JUSTICE.