New Orleans Republican., 1877-05-19


tion, but does not feel at liberty to as
sure the obliRations incident to the trust
of Fiscal Agent.
If this bank is to hold relations to the
State of a financial character, it would do
its utmost to serve the State in any man
ner short of coming under the absolute
engagement to make the advances for the
State, which compliance with the obliga-
tions of Fiscal Agent would necessarily
impose. If the creditors of the State,
under the peculiar circumstances which
now. exist are subjected to delay in the
payment of q poStion of the interest on
thepublic debt, the disappointment would
be mitigated by the reflection that in
brief period the existing difficulties would
be overcome, and the credit of the State
higher, from the. consideration that the
State is not a borrower, but prefers now
to postpone its creditors for a portion of
the interest due them until the collection
ofthe taxes will produce, ss they soon
will do, the adequate means to discharge
allobIgations. This course will, in two
years, place the credit of the State on
sound and lasting basis, and wholly from
her. own resources, and is a sounder prin-
eiple of finance than to borrow money for
which there is. no provision in your laws
to pay interest upon.
Inlconclusion, desire to call your at
I tention to the fact that this State is
wholly agricultural and of a very peculiar
character, and to the products of the soil
we look for means to pay present and
prospective liabilities. To promote this
agriculture large means are required in
the form of advances to planters through
their factors; these advances come solely
from our banks, whose means are barely
adequa5s, to meet the demand. Any
course reducing the ability of our banks
to meet this necessary and legitimate de-
msnd tends to reduction of crops and re-
tards agricultural progress and diminishes
the ability of our people to pay taxes. 1t
follows then, that it is a wise policy to aid
and foster their industries for the present
and thus gradually and permanently build
up the credit of the State in promoting
the individual condition of the people.
Vey respectfully,
]. d. OGLESBY, President.
MIR. Oglesby desired time for consulta-
ton with the directors of the bank, and
Thursday sent the following declinatiOn
NEW ORLEANS, March II, 1877.
Governor F. T. Nichols and Members of the Rund
ing Board:
The managers of this bank, after care
full consideration, decline the proposition
submitted by your board, through Mr..
Black, but authorize me to say this banH
will pay the coupons on the entire funded
debt of the State falling due July /, 1877
and January l, 1878, but will make nC
advances for the payment of any portion
of the back interest. This proposition il
conditioned that all tax collectors be re
quired to deposit their collections in thil
bank, and that the agency shall remain
with this bank during the term of thu
present administration, or until all bal
ances due the bank are paid, unless th'
bank elects sooner to relinquish the po
sition. Respectfully,
President Louisiana National Bank.
Mr.. Kennedy having signifed his will
ingness to accept the proposition of tn
Board Immediately on its being proposed
nothing remained but to elect him, whic
was accordingly done, and Governo
Nichols authorized to make the contract
The Democrat in commenting on tn
resolutions adopted, says:
The resolution Of Mr.. Bush was a yer
wise and proper cne, and it places th
: State in very dignifed position.
: would scarcely have been becoming
the board to huckstef this high and n
sponsible position off to the ''highe!
, bidder" The necessities of the State d.
mand that the fiscal agent shall assum
certain specified responsibilities neeesst
! ry to maintain the public credit and prC
l tect the creditors of the State. The put
D lie interest requires nothing more; and
, was, therefore, proper in the board to dt
fine the requirements of the State
, nothing more and nothing less-as
basis of choice; and it may now procee
to select, upon the simple question {
merit, a fscel agent from among thos
candidates who are ready to accept th
} position upon the terms stipulated.
The action of the board yesterday wi
Immediately give to State consols a soil
: and permanent value. Weeks, ma,
I months ago, when our contemporarit
were in agonies of anxiety as to how IL
Nichols government was going to met
this interest question, we bade thel
soothe their perturbed spirits, for thi
when the question became an aggressiN
,, one, there would be no difficulty in fine
ing men who would be deeply enough il
terested to be ready to advance means
meet this difficulty and sustain the cred
of the State. The basis of election of
fiscal agent, laid down in Mr.. Bush's res
, luton, and which one wealthy and r
sponsible banker has already expresst
l his readiness to accept, settles the who
difficulty.