The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1875-01-02

NfNIluNNV w NINNllNN NNNINNlIfIN w
enforce thplf flGliia against railways,
ilIta Hhd o0uhiimUf Iowa. llllnOla Md
WnrunFln. Ne iH0 bofn ihe muuoef
luall That lillnnilm whereby the ~.
Won't court Ul lh0 llniltd States had
hapu gnt IN decide that municipal aud
other bubds, when lsupd ~ political
eurp1fniiuns, IRE binding upon Tho
Whole property NJ tho oltiy0ns, and can
hp collected through the courts. TIE
supreme court Of Iowa had originally
hold the same way, Tut tile people
mgdp n new constitution aud elected
n new supreme court which reversed
The former decisions, aud the aid
of the supreme court Of the Unl-
ted States was, therefore, neces-
sary to protect the rights of tile
cation, where the courts would order
the mayor aud city council to levy II
tax aud pny u debt and those nuthorl-
ties would refuse TO do so, because they
were restrained by injunction from the
state court, the federal court would put
the whole city government In jail UNI
Ill thcydld levy the necessary tax. In
some cases the court would direct its
marshal to, levy and collect such tax
as was necessary to pay the debt. This
line of decisions governs the policy
to he pursued by the foreign bondhold-
ers and they further decide that when
bonds are issued, and the law which
authorizes the issue also provides II tax
TO pay the interest on them and u sink
ing fund to pay the principal when
due--then such law Is contract be-
tween the state and the bondholder,
and
CANNOT DE REPEALED OR MODIFIED,
hut that the tax thus provided must be
the use to which II Is pledged. Upon
the principle of these decisions, which
was applied to the southern debts, it
has been arranged to float all the debts
of all these states on the terms propos-
ed. For this purpose this American
bond funding and banking association
has been organized with sufficient
capital to accomplish its objects. Its
capitalists are among the strongest
firms in Europe interested and dealing
in American securities-the Roth
childs, Gilliatts and Earrings, of Lon
don, besides some of the most influen-
.tial financial firms of Germany. They
have had the law above referred to
prepared, and they propose to- state
il she will agree to its provisions and
surrender to them the entire control of
its Debt, then this association binds it,
self to receive these new bonds and to
return to the state the old bonds in eX-
change as soon as they can get possess
sion of them. The proposed new bond
is to be made payable in London in
gold coin SO as to meet the legal tell
der decisions ofthe supreme court, and
the rate of interest will vary in each
state according to her ability to pay.
The syndicate controlling this as
ISOLATION in London hold large
quantities of southern securities.
With their influence in financial
circles they expect to place these new
gold bonds on the market on the most
advantageous terms. they will beper-
feclly secured, the interest will always
be promptly paid in London, and they
expect to sell them alta much higher
rate than the present dishonored bonds
can be made to bring. A gold bond
payable in London is considered worth
more than one-fifth more than gold
bond payable in New York, and, rs a
proof of this, they refer to the fact that
before the war the state bonds payable
in London bearing five per cent
brought us much as bonds of the same
state payable in New York bearing six
per cent, and then both bonds were
papable in gold.
THE cOIVpuEIN nEnr