The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-19
THE STATE CREDIT.
MEETING LAST EVENING AT THE
STOCK EXCHANGE ON THE SUBJECT.

- 10
| Some time before the appointed hour
ocloek-there were knots of our Carondele
street hnanciers gathered about the doors of the
Stock Exchange awaiting the meeting of those
Interested in the payment Of the January Inter
est to be held there. The condition of the States
credit and its jeopardy were fully discussed. and
many were the surmses rs to the probability Of
the payment of the coupons when due Before
the meeting was called to order members Of tho
! Funding Board, presidents of banks and in
surance companies and brokers began to arrive
and whom the chairman. Adolph Schneider took
| his seat there were about forty present Only
invited guests and the former members of the
meeting were admitted into the Exchange
proper, rs the deliberations were to be private
| After the closed meeting had been called to
| order Mr.. r. y. Miller. chairman of the com
inttee Of six, asked for further time to report.
| which was granted.
1t was then stated that T J. eemmes. Esd.
was present. and, having, examined the legal
Agent and the Fu.ding Board, he would eluci-
| date the sutjectby IN expression of his views
| par icularly regarding the powers and duties
| Of the Funding Board in this emergency.
Lieut.. Gov. Witt and other members Of the
board objected to being compelled to listen az
officers to an argument touching their official
action. and expressed their desire to allow
those assembled hs citizens to deliberate un-
trammeled by heir presence.
on IN, motion II was resolved that the meeting
would hear Mr.. Semmes. who said in substance
tho following:
He would only state the general results of
his Investigations for this was not the time TO
support tho conclusions no had arrived nj by
any ratiocination, nor vas this the tribunal be-
fore whom to present them. He would give the
made for provision to pay the public debt
were to be considered first. He confessed that
Thd he hid to rs say would not lead to any
that there was no legal remedy on tho part Of
any citizen to compel the Funding Board to act
In the matter.
The net Of 1874 created the fiscal agency. and
this was amended twice. All the acts creating
tho Funding Board gave It the appointing pow
remove or change the Fiscal Agent. Nothing is
better settled than that. where n tribunal is ere
Hted with certain appointing powers. no court
can Interfere with tho discretion of such tribu-
nal. That leaves for discussion only the acts
creating the fiscal agency, aud to SEQ whether
hy contract or otherwise an arrangement can
be made so that the coupons can be paid
None OF the acts creating the fiscal agency de-
fine the time which 1t shall serve. When an
office is created without giving In the law a
term, the appointing power can by appointing
others, cut of the term of the prede .pssors
I Is perfectly well settled that the. appointing
power cannot. whom the public good requires II
abnegate from Itself the right TO end the term
81 an office There is an utter absence of power,
Tho Governor cannot by contract give up tho
right or power of pardoning criminals.
Now 1t may be said that that clause In tho
funding net which says the Fiscal Agent can he
remover Tor cause might Int rfnrG with another
INTERPRETATION Of this law. This clause is merely
an Indication that the Fiscal Agent cannot be re-
moved to-day after his appointment yesterday
on fimsy grounds that was all
! he cause of removal need not ho nenosearily |
n violation OF contract: it NAV bN for other /
causes, Tho Funding Beard have the absolute |
discretion us to what shall be tho cause and If |
the public good requires it, this should DO sui |
llcient
The question then arises whether It shall be
urged that he board shall In their discretion
remove the Fiscal Agent or not. When the duty |
81 Fiscal Agent was assumed 1t was implied TINT |
the coupons of tho year should be paid out of |
tho revenues OF the year. so that the only right |
the Fiscal Agent has Is TO have his coupons paid t
out of the revenues of the year, and If the reve-
nues are not sufficient then they are to be paid /
out OF the REDEEM ion fund created under the
act Of 1877 The only exception made in the net
was for $500 900 paid out In advance to the leg
islature at that time.
The Fiscal Agent now says that he cannot |
meet the coupons in January, The calculation
made when the law of 1874 passed was based on
The values Of that time.
The act of 1874 and 1877 evidently contam-
plated that advances would have to be made by
he Fiscal Agent, for 1t required that al the
revenues should be deposited in his bank. Is
nat right? Can any funding board on the face
If tho earth 60 before tho public and stand on
arrests which they should consult. II only re-
mains TO see whether you can't got some
1ank to come forward and say TINT 1t will make
md present it to the Funding Board aud leave
he present Fiscal Agent to take for his reim-
tho moneys received out Of the next
year's taxes
The intention of the legislation was that adj
'anees should be made What is tho use Of
laving n Fiscal Agent who will not make such
advances and deprives others from hsneflttng
~ the law There is nothing in the CONTRACT
which requires him TO be reimbursed before he
eases to act. If there is any deficiency no fs to
20 reimbursed out Of tho first taxes Of tho next
'ear. That Is all
Tho question Ia. shall he stand upon what no
nils o light which is no right, and shall the
funding Board stand and prevent the pay
mont of tho State interest. He is asking
omething moro than his contract. You then
ONO back 10 tho question shall no retain the
geney for four years and coercs somebody to
dvnnes money TO sustain the state credit2
Mr.. Semmes urged that IL an offer was made
" bank to pay tho interest. then this IN
houd be presented to the Funding Board. and
ustained by strong public opinion. that body
would take action
On motion a vote OF thanks was returned to
he speaker
When Mr. Semmes had closed. tho Funding
Board and press were invited to listen to any
discussion that might take place
Mr.. u. g. feinour suggested that petition to
he Funding Board be Mt once prepared and
igned by oil present, but the matter was re
erred to tho committee of flftoen
The meeting then adjourned subject to call.