New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1877-05-26
THE FUNDING BOARD,

The violent fluctuations in the price of
State consols betrays a loose screw some
where. During the past week bonds have
touched 92II, and yesterday sold down to
S53. Here is vibration of seven points
within less than as many days, and there
must be reason for it. As money is
plenty enough, for those who have credit,
it can not be attributes to stringency in
that direction. No political changes have
taken place or even been thought of by
anybody. Those who, have lost heavy
sums by specializing in consols are dis
posed to attribute their i'll luck to the
awkward and uncertain movements of
the Funding Board and the new Fiscal
Agent. In support of their charge they
allege-
/. That the contract which was offered
openly to all the competing banks in the
city was modified in favor of the State
Bank after it had been accepted by the
board. This gave the world to under
stand that very little dependence could
= =, -.--- ruvAIv resolutions of the
board, and Immediately threw q, cloud
over its reputation.
2. That it is contemplated to use the
balances remaining in the treasury to the
credit of the interest funds for past years,
for the payment of the July coupons on
consols. This, if it be done, will be
violation of the constitutional amendment
which requires the revenues collected for
any one year to be strictly applied to the
payment of the expenses of that year, and
gives another'most serious jog 10 any re-
maing confidence that may be in the pub
lie mind as to the spirit of fairness which.
is to govern the transactions of the Fund
ing Board. To pool these balances for
the benefit of the holders Of coupons Of
1877 would be lot only in fraud of the
rights of holders of coupons of back
years, but would violate the law which
directs that this money shall be disbursed
in an entirely different manner.
8. The extraordinary and entirely illogi-
cal refusal Of the board to fund the levee
bonds Of 1865, in the face of the decision
Of the Supreme Court, has been heard of
in New York and Europe, and the inquiry
comes back, 'fWhat does it meanY' BUSH
ness men expect business to be done on
logical and natural principles. But mo-
body can see any sense in the position
taken by the board in reference to these
bonds. 1--WE will fund Morey's bonds, ? say
the hquidators, because the Supreme
Court has ordered us to do SO; but we de-
cline to fund the i've presented by the
Fiscal Agent because he has not been to
the expense Of getting them through the
tribunal Of last resort. :" 1t is admitted
that the court will finally order all that
remain Of the series, about two hundred
thousand dollars, to be funded, but as Il
will require from two to three years 10 get
them through that tribunal, that much
delay may be gained, not by the State,
which has to pay the interest anyhow, but
by'ths Fiscal Agent. who has undertaken
the task Of advancing money enough to
pay The interest Though the 1--WE bonds
which were presented and refused were
offered BY the Fiscal Agent the tzansac-
ton Is believed to have been intended az
q test Of the action Of the board in regard
TO this series, and 10 have been in the in
tsssst Of the State Bank. II looks 10 tha
average capitalists As though tne new
Fiscal Agent were running the Funding
Board, shaping is policy and directinQ ia
min4test movemsnt.
Il e not to be wondered at that the bot.
tom should begin to drop out Of ahs stat,
credit under such circumstances. 4
shire wd New York broker, who seems t.
have forsknown the intentions OF Ii,
board, put very large amcunt Of thes,
same 1865 bonds on this market 4 fen
days befOts they were thrown out, ani
realized &c high IS sixty for part .
ihen. OF course this forms Z subject q
oomnant on tlls sszsst not e all conaoli
meniaEy % tie rseHss vho a1s dosassi
~ diving lnlsrn aliea b New Ho