The People's vindicator. [volume] (Natchitoches, La.) 1874-1883, 1878-03-30
Editorial Correspondence.
NEW ORLEANS, La,
March 23d, 1878. I

| WIFI NS SOou people anu us oaN, WIN
It's rings and monopolics, and with
those who are making all patriotic
effort to destroy them.
of course is tagging, as this is the
! tail of the season, and, beyond n
country order now and then, the
Wholesale honses will do nothing till
Summer is far advanced. Perhaps
they do not want the kind of bust
ness offered, or that which will be
offered, because it must be on time
money is not to he thought of, as it
is non est. The resent failures have
had their effect; or perhaps, and
correctly speaking, they are in them
selves effects. The Red River people
suffer some, as they generally do
when cotton men play short. One of
our parish planters loses $1,000, and
100 bales of cotton by the snspen-
sion of Levy & Clark. This house,
with that of II. r. Buckner & Bro,
l. Bloom, }. Walsh and Page g. Mo-
ran, are the recent large failures, and
are monuments of the policy of con-
traction which has brought values
down to nothing all over the country.
STATE SECURITIES
are down to 7G to-day, a fall of ten
cents in one week. Many reasons
are assigned for this sudden tumble,
and suhjoin the Evening ITEMS re.
portorial results rs to the causes of
the breakdown in the credit of the
State:
A reporter of The ITEM was dispatched
in search of reliable views as to the cause
of the disastrous decline in State sccuri-
ties, Il falling off from S3H to II per cent.
in less than three weeks, or loss in ar-
tnal values Oh consolidated bonds alone
OF over one million dollars.
A PROMINENT MEMBER
of the late Legislature stated that he had
made careful study of the Kellogg
scheme for readiustiny the State debt in
comparison with the resources of the
State and ability of the people to pay,
and was satisfied that vital error had
been made in fixing the rate CT interest
at seven per cent. In the present contli-
ton OF the financial world no community
could afford to pay it. He thought that
had not the crops failed last year, more
prolonged effort would have been made
to carry ont the funding act pledges in
good faith but with the sbriukase in
values of our leading staples and real
property, ultimate failure would have
been unavoidable. He is studying the
subject infinitely with d view of submit
ting plan to the next Legislature for
refundng the entire outstanding debt,
bonded and floating, in new five per
cent. interest bearing bond.
A LARGE OPERATOR
in bonds attributes the collapse to the
"non-elasticity' of the banks. He saws
Carondelet street has been eaten up by
its enormous interest account. Instead
Of reducing the interest rate to five or
even four per cent on good collateral
loans, the banks prefer to go on shaving
unsecured commercial paper at eight per
cent, or to crowd their vaults with idle
money In England supply and demand
regulate the rate of interest for money
as well as the value of merchandise.
Further instead of sustaining their Gus
toners at the moment when the Legis-
latnre was tntling with the States credit
by threatening to tax bonds, the brokers
were first to take the alarm, and by call
ing for additional margins on loans based
on State bonds, mainly created the feel
ing ofdistrust which has resulted so la
mentally.
A SllREWD AND EXPERIENCED BROKER
attributes the misfortune solely to the
financial unwistlom of the Legislature.
Had proper measure been adopted to Sc
cnre interest payments, and to prove to !
the world that the honor of L louisiana |
would never be stlirched with repudia- |
ton, the g|ut of bonds in this market
would have been materially relieved and
at profitable figures. The money thus
released would have sought investment
in q score Of ways that must have PROV
Ell generally beneficial. The Pacific
railroad would have caught much of
this released capital; new manufacto~
ries and new grain elevators would have
been erected, and fresh impetus given
to all now established enterprises. But
the strongly backed proposition to tax
bonds, though finally defeated, indicated
that tho germ Of reputation is in the
people, and instead Of selling our bonds
ut profit, this market is having those
held abroad thrust upon it, and these
must either be taken or prices will de-
cline to q figure that can leave but a
wreck Of many fair fortune among our
He sees no hope of restored
confidence until the next elected Leyis-
lature accomplishes the financial reforms
which the slate lamente,l,' with criminal
negligence or rccklessncss, omitted to
enact.
A LEADING BANKER,
expressing full faith in tho
patriotism of the Fiscal Agent, declared
the belief that he could not afford to adj
vance the sum requisite to make up the
deficiency in interest tax collections next
July: The cost of collection, he under
stood, had been increased in this citv.
md discount is to be allowed for speedy
payments. This will reduce the sum
'otal, without in his opinion, increasing
The collections sufficiently to ]iquidate
The constantly growing claims. The
worst Of the depreciation was yet to come
when sales began on account of ex-
,anstcd margins-a day not distant when
3he flags of Caronde]et street would be
trewn with the remains of busted"
peculators.
THERE IS A WELL GROUNDED REPORT
hat u representative of the London a.
OCiafpd hanks rpcanfIv orr;v.d -, No.. |