The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-21
rEw ORLEANS. DErEmnEH ~, 1878
trommunlratad
THE FISCAL AGENCY AND THE FUND
ING. BOARD.

-
We regret 60 he nj complete variance with 81
ra,aamod ooniemporary. the Firrv,p,o. hnt afe
having carefully read ita remarks on our nr
tIcla of "Wednesday concerning iha state debt
wofbiuk We ne bound TO ueraia in the opiuipi
which we hnyo Expressed 1hn uueatirn q
Iueuo IA whether the Funding BOARD. IN view y
the refusal of tho Rtate National Rank the rtoa
ont FIaan Agent IN advance ~ tho Htain M.
funds necessary tntnk q NJ the January nnupoua
ahould withdraw the laonl agency from tina
bank nnd Got int " upon another hnnh Wltbon
pxnnitup from tho lnitrr the reimbursement (,
the former OF advances made IN the pnat
IirRt mn error committed Wv the honorable
Mr. Rpmmra Ia HE speech delivered hnfoin Ii,
Stock Exchange Wednesday night should la IN
ddnind He spoke winn nj tnloryaa If the In
ability under which the state National Bank wa
laboring IN making the required advances
The term ihnt,}Hv which no used is altogether
inesart and II a"ema ~ ua that atrioi Juate,
demands that tho real situation ha established
which can hest he done Ivy reproducing the mo
lives iraoaied hy The hhnk ~ qualification Of III
refyaa,.
Whereas Hpid Fiscal Agent haa already com
piled with oil ita engagements with the Roart
OF Liquidation. under which II has alrpna,
caehed the iptereEt ooupons ol January /. leJ7
and Of January !, iaia. aud eiill holds same II
amounts largely IN aycaaa ~ the actual nollen
Hon of taxes HrrftcHtr- tn tire payment IF tit
same: md whareaa. although aaid advances
nv the Fianal Agent are occurred and will doubt
ieaa ultimately la paid by the collie tion Of taxes
especially act ara,i for the purpose there ia vel
no assurance under the present sraem of tax
collections that the receipts ~ suoh Ryea VIII le
auhicient tn rGimhufae 'he tiHCai Agent within
such reasonable time M would iuaify further
advances and
Whereas the proposed remuneration " { par
cent intereat Ia contingent Ia Ia received by The
Fiscal Agent when an aNooaa Of public revenues
ehall create sutrlua funds puch M nra contom-
plated Ivy net "a. approved juno ~ ts1s; md
Whereas, gt thu prpHant time there nnp hoen
but very ent,ll amount Of in'ereat funds col
locted and paid In the treasury Ia meet tha IN
tereet roupone OF January I, 1870, amounting to
Whereas the tax collectors nra not called
upon TO make their reurna until January noxt
"a stated IN the resolution of the Board Of Liaui
Are The prospects auch aa 10 Load TO Tho helief
that the receipts OF the five aud a half mills tax
will he sufficient 10 cover tho advances nacna
aary to pay tho January inlernai2 Our ca
tnomed contemporary darna not affirm ,. for II
apya. 1T may hn true, 81 II may not that tho
collections Will nnilioo ~ mako good nm advance
OF the January interest, hut we have rnRaon to
believe that the mon"y could h. obtained on
that security y the Funding BOARD would 70
lcve the question OF tho compliratio nriHing
out Of the conditions insiated on by the state
National
Or. "a speak mora clearly. lcndars nnn Ia
found who will advance tho $40 900, aud who
will run the chances Of not betting reimbursed
by the receipt Of tnNaa, harauan they expect to
make more than Tint sum by tho rlao In consola
II may be aaid that II dnea not behoove tho
Funding Board 70 inquire into tho motivoa Of
these lenders, and shoul take advantage soley
Of their Willingness. Yes but II aeems that
these landera are unwilling 10 advance this
money m lenders simply on tho plodga " tho
tax to be collected: H,eu rant the fiscal ngepcv,
Therefore, despite our reepect for the opinion
OF our contemporary and of that ON mont Iuriat
Mr.. Scmmea. we do not hnievo that another
Fiaoal Agent can he elected unless he no willing
that IA O. say unless Id reimburse him all hia
advances. Before referring To- tho elementary
principles Of law which Amply TO thia matter
the con sequences must he ahnwn which would
How from tho pronggitipu which "a Arr rn
batting.
suppose tho Funding Board oocta now
Fiscal Agent who will advance thnJJanuary
interest, what will he done In July II the agent
having In his turn some 5000 600 Of arrears
should refusn to make n second advance for tho
payment OF the July coupons7
The situation then would bo exactly that In
which we are ~ day, Would Il not bee me Mecca
sarY 20 elect every RiS months. or every year a
new Fiscal Agent, leaving the old onea TO strug-
gle ~ best they may 10 secure the payment of
their arreHrs2 This would 10 u singular mud
lators who wished that there should be but ono
Fiscal Agent 1T a time assuming and vested
with the priyiesna of that position.
:, On The o,hnr hsnd il we apply The r%los Of
Agent IL n mandatory. who binds himself 10
make advances on pledge Now. this pledge
u the tax, hut III the privilege which tho Fiscal
Agent enjoys " receiving on dep oRit those re-
'eipts, and Of thus being able 70 Apply them TO
blmsolf
rom the state National Bank without REIN
,nrsins its advances. tho real substance Of its |
pledge IL taken away. and we do not think II |
ither Just or legal 10 act In such n manner Adj |
hitting. then rs the honorable Spmmas insists |
hat the Funding Board has the power to with I
raw the fiscal agency from the state National |
Sank regardless of the terms OF liza contract Ia
ontestahla point. however,, wa entirely differ
With him rs far as the rcimhursing OF tho ad-
ances made f. concerned. Mr.. Semmes felt SO
lpaFly the weakness Of the position he assumed
ha, he lssad The whole Of his argument on the
o-called inability Of iae present Fiscal Agent
o make the new advances; whereas the true
pcoHeStei insutli1ieney Of the pledge since IT
positive that the yield from the live aud n half
nill taS deducttnE valueless assessments, can
ot cover the yearly amount Of interest,
This last remark leads tN the correction Of an !
observation mada hy another one ~ our con
smporaries on he subject Of tho inviolahility If
he rights Of the states creditors, Without
discussing the contract made by Kellogg nor
he more or less ~ respect due tD an amend
nent the adoption Of which was proclaimed
My by n fraudulent returning board !" and in
form of questionable legality. va call alton
on II the fact that this famous contract or
limits 10 five and one-half mills
le tax whose product Il destined 70 the States
II the legislature has not the right to divert
he leAst portion of this tax. il neither has the
light to impose higher taX upon the taxpayers
)r the benefit OF these same creditors
Now, in consequence of the depreciation Of
roperty. the yield of this tax Is become insult
That is 10 be done under such circumstances
here IL but one way. We think Il Is TO scale
le interest in such manner as 10 pay pro rata
ach bondholder from the actual yield of the
To borrow money through new advances,
hioh will, no doubt. only be made To facilitate
lsufteient eNpedient. The Funding Board
hould not devote itself solely 10 the necessities
the January maturittes II must look farther
head. Private individuals who sacrifice every
ling tO meet one maturity must surely end in