The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-11-21
Communicated
THE CITY DEBT.

liSh6d O communication ON the premium DOnu
scheme In answer to an article which appeared
in the same paper the preceding Sunday, dis
cussing plan for the funding OF the bonds.
This communication, no doubt, proposed to re-
fute the first article but failed in its object as 1t
is utterly devoid OF argument. Ii We re-
turn to the subject, it Is simply to enltghten the
public mind on the legal and moral merits OF
the two debts. between which the author OF the
latter communication aims to establish an equal
value and entire similarity.
II the financial history Of the city had boon
familiar to the writer referred to, We would say
that he was guided more by an Interested mo-
ought always to prevail In the discussion OF
matters Of such Welghty lmport as thls but as
the reasoning Of the article is deficient both In
soundness and strength, we will simply state
that he has erred through igDorance. and this
Is the most polite expression which We can use.
Some would insist that the writer's statement
that he held neither premium bonds nor consol,
dated bonds Is true only as to TIE hdnds
ne ha be Is 6 bo9ep 81
none; but he may have an interest in premium
bonds. since he is in favor of the premium bond
As our 81 sole a@ to g out
the means Of tightening the, city debt by en- en-
abng the city city TO- @ It's is eE
Without ibiuring any one, we would explain to
the author of the mmunlcatqn on me pre- b.
funded at their present market value. and why
we think the consOida ed bonds should Do fund-
Which seems to so eurage and excite him. The
consolidated debt Is q legal obligation. which
In its inception. is as sacred right as property
This Is proved by the fact that for more than
twenty three years the interest on these bonds
has been punctually, faithfully and unfnterrupt-
edly paid. Moreover I'LL the Republican Legis,
1atures have acknow lodged the sacradntss Or
on The city and Stats such heavy debts or obi
. cations that community ten times as rich as
: ours would have been unable to have borne
Mr.. Kellogg was able to reduce the State debt.
funded and contingent. from S530oo:oOo to sl2,-
100000. because these debts, even the Oldest e
were protected by no Special or particular law.
State we're not worth more han the newest
Of funding equally to all the Obligations. Apart
from these considerations. 1t Is we'll known thnt
the State Is sovereign. 1t caL, exercise ts ful
authority, and Impose any reduction DeneHclal
But the city is not sovereign it is subject to
the laws OF the state. and is responsible for its
acts before the courts as any. simple citizen
and the law OF 1852, creating the CONSOLIDATED
bNnd on ne oy sae em
have been passed under the dissolute Radical
reign. Strange to say, not one OF those coIr 1
legislatures OF Radical days has dared to attack
the legal respect due the title OF the consolidated
Win Democratic ADMINISTRATION do with the
old debt of the city what the Republicans fear
cd to DO though for long time the latter WELD
ed an almost discretionary power? We know
Gpt hs UNDER Sanction
Of law. but it faied to establish it's rights before
the courts. all OF which have, up to to-day &C.
knowledged the impregnable position Of the
consolidated bonds OF 1852-We would be doing
Injustice to the Supreme Court OF Louisiana u.
its character. and If we did not acknowledge
the respect it has towards right and Justice.
But the writer of the communication of Sun
day touching the premium bonds may say:
1.-The premium bonds also are protected by a
law they exist by virtue Of the Law Of 1875 great
haye BEEN creaed BY The law q but f
law came alter the act of 1852 which
forbade a9y Psa issue Of bonds
sanctioned the debt or is H OF bonds by TIE
OBSERVATION-DISCLOSURES thereore be e pleased Inform
us If the people have been consulted. and II
they have approved, by direct vote, OF these Ties
millions, which have been grated. without
profit or 9ene to the city upon t6e
0 Made new 6rean as0 what hs Rspnb
dourishing, and which they left Us. burdened
Such IS the position Of New Orleans at pres
emit. which is unable to pay even its humblest
employees, such as the school teachers. and
others of its employees belonging to the poorer
Has the author of the communication in
uuired into the manner in which the law Of 1875
creating the premium bonds was passed? He
seems 70 ignore it. We, however. will sell him
the whole story On the strength Of Ia resolution
q he 02 aos Gnon Se Whio
resolution BY the Union was protested
Council has tened to place the premium
bond bill before the Legislature. recommending
its immediate adoption. The members Of the
House from the country parishes were ignorant
of city affairs; they always consuled the CITY
members on questions affecting the municipal
affairs and the latter believing the bill to be
beneficial nHaD M
mended by the city government made not the
slightest opposition to its passage.
Thus the bill surreptIOusly passed the House
without aising any debate or discussion under
suspension of the rules it was sent immedi-
ately to the Senate,
But the trick was not yet successful II
was necessary to secure the Senates approval
Of the bill; and. will it be believed. that the
first, to sanction the bill on the ground of its
unconstitutiOnality. TWAS Republican Sennte
which undertook the defense OF right in uphold
ing the legality Of the bonds Of 1882. The Senate
held that the bill could not be approved
because it gave rise to difficult quesstons
days the Senate whstood the, pressure
brought to bear ' II in favor Of the bill BY those
Re cn q tine who we're aon m
meanwhile was drawing rapidly to close.
determined move had to be made; 1t was
put in execution at once. At that time the ques-
ton Of impeaching Kellogg was bel g agi ated
and the bill Of impeachment had already been
drawn up when the astute Governor hit upon a
the Senate to vote on the premium bond plan,
provided the projected Impeachment were set
aside The bargain being thus made. the pre-
MUM bond hill became a law and was approved
by the Senate on the day before the close of the
session.
We now ask of the author of the communion
ton II he entertain any great regard for the
premium bond scheme of whose history he was
no doubt ignorant?
We request b N also to tell US, If, confronted
with the law Of 1852. the premium bond act can
be considered constitutional, Let him tell us
yYhntbnr tho Gt1frtal nf Twill Coda ra1a tjyl
to contracts. can be overthrown ;swhether laws in
antagonism TO the first principes Of justice can
be passed, whether right can be opposed to
right?
/. This proceeding is, as arbitrary as an ahol-
ton Of property rights. and, if followed. what
will become. of society? To the author Of the
communication who needed the explanation
for his own instruction. we have just explained
the vast difference in LEGALITY and respectable
ity which exists between the and the new
city debt. We will add to the ex PLANTATION some-
thing which he may possibly know. but which
ne carefully avoids mentioning; this is, that
and more frequently above par, so great was