The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-11-17
Communicated
PREMIUM BONDS.

active in their efforts to break down the coll
idence heretofore existing in premium bonas
and to decry the system which has SO 1ar
saved our city from reputation and Kept 1t
back from the bottomless pit of bankruptcy.
They employ eminent counsel to oVerWhelm
the courts with the power Of their irreslstl-
BILE logic by which the city shall be MADE to
| recognize but one debt and that is the one
| represented by their bonds, and to treat all
others as secondary or Of no value at all
| They employ writer's to keep before the peo-
Die the sacredness of their debt and the
| worthlessness of all others, and by frequent
publication of their views make capital timid
and alarm holders Of premium bonds, causing
| them to sell out at serious loss. In an aftcle
| in last Sundays DEMOCRAT we notice that
something little more liberal is suggested.
1t is suggested that the premium bonds shall
be funded into q bond at per cent interest
| per annum on the basis OF tWenty-nlne or
thirty cents on the dollar, while the CONSOLE
dated bond shall be provided for at par now
worth about thirty mine to forty, with interest,
and a sinking fund to extinguiBh the debt: 1t Is
intimated that possibly the interest might be
reduced to per cent, or, in other words, give
the consolidated bondholders their dcbtm tM
avih interest, and the premium bondh0lder,
who gave up his old bonds Gust as Valld ana
VnltlsGiD6
change for the premiums, pay him twenty
nine or thirty cents on the dollar sBy, what
process of reason he comes to this conclusion
no one can derive, unless it IS because me
holders of the consolidated bonds are rich
CAPITALISTS living abroad, or r1ch corporations
in our city, whereas the premium bonds are
held by the poorer classes some OF Who1n
have invested for their wives and chlldren ana
others, for safe and future fund in lieu OF
| life insurance. The writer evidently believes
in the Scripture declaration, "to him who
hath much shall be given, but MN VINO hath
not shall be taken even that which ne hath
| We know something Of the temper OF our
people, and no writer of newspaper articles,
no decision OF courts, no rings OF spectators
can ever induce them to pay taxes assessed
for the purpose OF paying one part Of our Guy
debt In preference to another The premium
bonds are worth just as much as the consOll-
dated bonds, which should have been con-
vcrted into premium bonds long ago. HAD
this been done, the premium bonds would TO-
day be worth sixty to seventy cents on the
;; dollar and been taken by capitalists AS an in
vestment. II the premium bond scheme IS
allowed to continue in force undisturbed and
the consolidated bondhnlders will convert
theirs premiums will III five years go to par
but we fear no such good luck can come to
our city. The consolidated bondholders want
their pound of flesh no matter how much
life blood flows or how quickly the city OF
New Orleans dies under the operation. Iho
premium bond scheme so far has been a sue
cess, far more so than was at first expected.
Under it's operation the debt Of the
city has been reduced nearly S2,OOo,0O0. over
SD 900 900 premiums have been issued, and
not q word or breath has been uttered
against the honesty and fairness Of the work.
ings Of the scheme. If it shall be found later
on that the finances of the city cannot sustain
the debt, then it will be quite time enough to
talk about scaling the debt and issuing a new
bond. If the holders Of all bonds, consolidated
and premium, would then accept a scaling
| Hh 49, ,t,rh4 no nit
! cannot pay in full, a bond drawing 5
Der cent per annum could be issued for half
the present debt. This new bond would re-
ducp the debt of the city to about $4,000, 900.
this could be added a sinking fund OF 100000
or $50, 900. On this basis the bonds would be
: worth par in a short time, as the Interest
would be certain and thebonds be taken as an
investment.
The now board of administrators will soon
have this matter of finance to consider. 1t IS
q serious one, and will require great care and
attention, as the future OF our city depends
much upon this question Of finance. we have
no interest In bonds, consolidated or premium,
but we take q lively interest in the proper al
minstration of our city government and in
it's future success. If we were asked for advice
and counsel which we shall not, we would say,
. think twice before you act; look before you
leap; move cautiously and hear all sides, ana
especially beware of the pressure that will be
: brought to bear upon you in favor OF the con,
SOlldaton bonds, let the premium Donu
scheme be adhered to for at least an
other year until you have, had time to
fully see how it works, and before making any
change. Any mistake on your part in tht
management Of the finances OF the city, Will
prove fatal to your administration. You have
a board of commissioners who represent con
troll and have charge OF the premium bono
scheme. They hold their office under an act
4 Of the Legislature and can be relied upon as
: sound advisers in matters Of finance. They
have clear heads and sound understandings
and what is more, the confidence Of our com
munity The advice and opinion Of such mel
should be sought as they are not welded K
any scheme Of finance other than that which
, is for the GO0d Of the community. ant
that good should be and, no doubt
will be- the guiding star OF the new admins
traitors. We believed SO when we cast Orl
vote for them, and we expect to see our belle,
}. verified by their acts. We believe they vii
prove a bulwark Of strength to the Democratic
pa1y, who placed them where they are, ant
have no connection or utilization with "rine
men, or put-up jobs made for speculative
purposes, which can only end in disgrace tt
them as men and as administrators, ant
disaster to the city. We wish them success
and without further discussion now, will wal
for events. 1872