The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-29
THE CITY DEBT.

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city from the imputation Of purpose to re-
pudiate Its debts. It denies that any such in.
tent exists, and places the defense Of the city
on the ground Of Inability to pay twenty
millions, or through any execution short o.
processes akin to general confiscation, make
provision for the annual interest on any such
sum-" Herein the Picavne fails again to
state the true and impregnable ground on
which the city Is placed against the imputa-
ton of reputation and against the oppres-
sive inactlon to which 1t will be driven by the
attempt to pay twenty millions Of debt and
the yearly interest thereon. When the
city places itself on this ground, to
wit: the maintenance Of the inviolability
of the contract Of 1852 1t is In position to ad-
just Its debt on terms which will render such
settlement both legal and reconcilable with
good faith, and which will save 1t from the
stigma Of reputation and bring the debt with
In the resources OF the present moderate taxa
ton. This position Of the city is simply that
Of all corporations and individuals, embar-
raised by claims largely in excess of its m cans
or its legal liabilities Thus 1t will be en-
abled to say to all their claimants, prove, JUS
tify your debts, show that they are authorized
by law, and then we will do the best we can.
II your claim Is a legal one we do not propose
even to compromise without your concur
renee. II it is not legal one, and we have
valid defense, 1t Is for US to say on what
terms we will settle. When the validity
Of this defense Is recognized by the de-
cision of the highest court Of the State.
the city will then be placed on
this secure ground Of protection against all
legal enforcement Of claims, which have
not the same solid basis to rest on. The
offensive term Of reputation has never been
applied to such a defense against claims or
debts. The Picayame would scale all debts of
the city, legal and illegal, together, on the
same basis: we, on the contrary, deny the
right TO scale legal debts without the consent
Of the holders thereof; but. in regard to all
other claims or debts, the city is left to its
own discretion, equity and liberality. Our
position would reduce the legal debt Of the
city to $4,5o0,0O0. That OF the Pcav4ne
would require us to scale an alleged debt OF
$2400O,0O0. The taxpayers have a clearer
view of their interests and rights when they
SO urgently demand the enforcement OF the
6AOoo PAOCCCUlOA CIuUOQIeu Ill Inc C0lcCY.
seventh sections Of the act of 1852.
The decision Of the Supreme Court affirm
ing the validity Of that provision will be
hailed by them with hallelujahs. as the
greatest boon and relief that could come to
this oppressed city.
Our worthy Mayor has pronounced the Pre-
MUM Bond Act a failure The legal credit
ors OF the city will not yield to it's demands.
They do not believe they could protect them
selves against legal defenses of the city
against the same But they do regard the
section Of the act OF 1852 as a
solid and sure defense Of all debts incurred in
conforming thereto. and equally sure against
Ill incurred IN violation thereof
A decision against the thirty-seventh sec
Ion Of the act OF 1852 would produce the very
'esult which the Picayrsne already presumes
% be fact, and so much bewails-that of |
king the legal debt Of the city at twenty-four
Millions of dollars!