The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-09-17
paid The bank is called upon to restore bonds
which the city has exchanged for other bonds

| course she Inlgut nave taken TO AVOID the dill
| fcuties and embarrRsslnents to which she re-
| fers. Her officers. her legal adviser. have had
the matter under consideration. they say. for
| fffeen months!
The city officials in question make and pro-
yoke side issues entirely irrelevant to the suit
lately brought. They charge the Southern
consolidated bonds what pi has fhat TODD with
COO b prgRi 81 naopps SRpefp e 0f bs TIL
that circumstance legally exonerat9 her from
the responsibility whie2 is now sought to be
e mss for t Would then mot be
viewed by the city officials hostile to the pre-
MUM bond aleatory scheme
soldated bonds. True, it asserts and seeks
to have their supremacy and the integrity Of the
solemn contract , involving the good faith 81 the
holder of such bonds for a large amount. it is
because it was required under the free banking
law to invest Its. gold in such securities to war
confidence and reliance in the assurances given
in the inducements held out by the State and
city, at the time, the bonds were issued. The
bank has never. like the city under the nspira-
ton of some evil spirit, offered to pay its cred
TORS 80 per cent of their just claims when she
dition that they would forego IN her behalf their
right to the remaining 30 per cent, remaining
only ordinary creditors therefor:
States Circuit Court In this State by certain nom
resident city consolidated bond holders has
nothing to do with the suit lately brought
against the bank. True. 1t was mainly decided
court uneauivoeally held: That the law Of 1862,
w Rfr n w the a'y s Se civ had rs
to impair, and which, by proceedings at law.
world be enforced to the very last iota;,
tions raised and reviewed by the court in that
case 1t is well. however. to say. in reply TO q
gra'uitous charge by the city officers that, in
to the. result OF which it looked with interest,
that the compliments, as, the prayer of their
bill shows, merely asked that the other obliga-
tons assailed in the bill be postponed to their
bonds.
1t would really seem that the city officials are
not well informed as to the law of 1869, under
which the bonds in question were issued; for
had they of 1t n proper knowledge they would
not have made the charge Of consistency pre-
let US tell them thai 1t is distinctly provided by
that act tsection 81 that those bonds shall rank
next to the old city, consolidated bonds Of 1852,
and that 1t is only after these last bonds shall
have been entirely paid in capital and interest.
that the provisions of the act OF 1852 in relation
TO them, shall be applied to cover and protect
It is a principle which the city officers seem
to ignore, or ut least to dispute. that parties
viewed as treating with minors or incapacitat-
| ed persons, and that their duty is to be,eare.,
| Our present Supreme Court has. not long
may we'll be that however sensitive that court
may have shown itself respecting State obliga-
tions. it vii! not as fully shield holders of mu-
nlclpai obligations, particularly when those
obligations have been issued in violation of law
| IN violation of restraining contracts. and at q
shame ban discount In favor Of speeuators In
remained. unless in their iniduity they have
with many others alike been merged in the
pramium bond aleatory scheme
| We confess that we have been sadly afflicted
at. the repeated attempts of our opponents to
wit at our expense. Matters of the importance
of those In question should not be made an oc-
| casion for jokes particularly bad ones, which
may very well do at the, proper time. at the
proper place and under the proper cir
eumstances. 1t may amuse those who
think themselves witty. and who. probably,
| If 1t ever went that far. are the very ones who
possibly may have smiled at their own peur-
It is not fair to say when the matter is entire
~ uncalled for. that the bank has ever been
to impair the public credit and to stimulate its
| enemies by covert attacks here and abroad and
to make other similar unjust and unfounded
charges. which the bank emphatictlly. pro-
nounces to be false and naateiouslv uttered, with
| q view to harm. The be-t evidence to the con-
in city and State obligations. It lent, as ad-
| mitted. the weight of its powerful influence to
the rapid diffusion of the bonds of 1869. in days
| fiuence been exerted those bonds, which are
now worth no more than premium bonds,
that is, much less than so per cent Of what. they
realized, would never have relieved the city, as
they did. of her difficulties. The gratuitous and
wanton charges would not certainly have been
preferred. fau the Dank, untrue TO It's duty to
stockholders and depositors. funded all its old
| city bonds into the premium bond lottery
| scheme.
| The bank did not do so for many legal, eonsti-
tutional. legitimate and financial reasons, which
| 1t will not now condescend to give but which the
money men do appreciate, as is evidenced by
existed between the old consolidated bonds and
| the premium bonds, the hobby of the municipal
executive
| These charges, made In the answer Of the city
officials against the bank. are not embodied in
| the petition filed in court. The officials making
| them may be held to account for them at the
proper time in q manner which will be In no
way agreeable to them
We have also been. charged indirectly with
having appealed t. public ym teathy, and with
seeking to influence or color judicial action by
public sentiment.
the most upright attitude, in bold and defying
| relief, both before the public and judicial bar.
dread no charges. and are ready to refute vic
toriously any which might be preferred in any
| spirit against us. for our conscience is clear
| and quiet We have done our duty, and are
| ready to prove 1t most conclusively. :.
| by our refutation. Had this suit been broug 1t
against us; az suits are usually insttuted had
at late hour OF the day, out 81 the clerks offca
| and of the COURTHOUSE and been dis seminated
| among the papers late at night to create SEN
sation in the sunday papers Of the 9Th; with
SanS which had not and could mot not have ave-
| swered in the manner in which we havei Had
not an answer contai ming unfair charges been
published by the city officials Yesterday we
would have remained satisfied with the show
| ing which we have made before the public UNI
til the day, If it ever comes. when we shall have
to appear and answer before the court selected
| by our enemies but, provoked as we have been.
we owed it to the public. whose impartial feel
| ing and sound Judgment are with us, to our de-
ents and friends, to the State and other local
| authorities, to show that our hands are as white
filed.
| We reiterate that when the time comes we will
prove the utter want of foundation and the
malice of the charges preferred against us to
| the shame and confusion Of our defamers and to
our honor and Justification.
Very respectfully,
THOS, LAYTON