The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-10-21
THE STATE DEBT.
A Prominent Republicans View Of 1t,
and Endorsement Of the Nichols
Administrator


Some days ago ex-aov. Michasl Hahn the
Speaker OF the Packard Legislature, and O
recognized chief of the Republican party. re
ceived q letter from d prominent Republican
politician Of Philadelphia and editor of lead
Ing journal In that city. from VIII ch the follow.
ing extracts are taken:
/ Can you tell me anything about Louisiana
| eonsols as safe investmsnt2 Others and I have
been watching them since you have been settled
down by Mr.. Hhyes, and we have been told by
certain brokers that they are good, and ought
| to be at par. What s the debt OF the state. and
what Is the likelihood of repudiation2 The
Southern States have way of repudiating their
debts that make investors shy of them. know
you are In position to give good and trust
worthy Information on this subject"
| To which Mr.. Hahn gives the following reply,
Of which he has furnished us copy;
New ORLEANS. October G1s77.
| ~ Pear Su,.1n reply your letter, lnauirng
rites known. as state Cansols.' | have to Say
that the funding act which was. passed under
| the Republican administration Of the State and
| made part OF the constitution by an amend
ment thereof, has stood the test Of the severest
examination and has. proved one of the most
succ ssful and complete. funding acts which
was ever enacted in any of the States. Its guar
nntees are OF the strongest and most impregna-
bic character.
jected to 9 thorough sitting of all doubtful
claims and securities being referred to the
ts and regularly adjudicated upon has been
are represented by consolidated bonds bearing
per cent interest,". and having forty years to
run from the 1st # January 1874 These bonds
lature can never inquire into. or repudate the
SANE same "A 1ed tax Ct 81 mills on the =
set apart. a. o trust fund requiring no appro-
priatlon by the Legislature to apply them TO the
payment Of the interest substantially Of these
any State officer to apply them to any other pur
pose The obligation. SO to keep this tax and
apply i az prescribed has been lmposed on
city banks, up to within o few months ago, and
T. now imposed IN another bank also splendid.
Is d BY bsaF nq int
fund. payable only to the holders OF these
The present State government has been care
full to Indicate and prove by It's acts that It will
fulfill and discharge all the Obligations Of this
constitutional contract It 4 sclaimed aud re-
illegal issues of consols by previous admins
trations, but assumed as constitutional and
conclusive contracts all those which have been
issued as consols. Human ingenuity could not
devise more complete securities for q State
debt or better guarantees against repudiation.
m ame to th the ntsrss and g. tho
total tax Of AZ mills Is abundant for all the ex-
penses of the State.
be collected, and that 1t will be honestly applied
The present State administration. at the head of
which is Governor Nichols, has manifested
thus far lbsra spirit to all classes of the peo-
pie. and has declared Its policy. and to a certain
extent has carried 1t out, of reducing the OK
penses. OF the government and administering
its alairs with integrity, punctuality and JUS
tice to all.
From this rather extended statement of the
character and facts relative to Or State Sc |
curities, you and your friends must draw their |
own conclusions as to the safety value and GER |
tainty OF the consols OF this State as an invest
ment.
Yours truly. etc. MICHAEL HAHN |