The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-11
THE FUNDING BOARD.
THE FISCAL AGENT DECLINES TO PAY
THE JANUARY INTEREST.
A Committee Of Feur Appointed to Seek
Relief from the XarINIIs Banks.

meet the outstanding coupons on the cOneOli-
dated debt. maturing Januasy |. and hold the
same until the collections are received.
The board was called 10 order at 80 D. m. by
Gov. Nichols All present The minutes Of
the two previous meetings wore read and, on
motion Of Col. Bush. adopted.
Mr. Jumel said he had sent a copy Of the reso
luton adopted at tho last meeting to the Fiscal
Agent. and had received thu following answer
STATS NATIONAL BANK.
New Orleans. December 10. 1873.
Hon Alien JumeI, Auditor, and Ex-officio Sec
Rotary OF the Board of Liquidation:
Sn-Your attention Ii reaue ctfuly invited to
the following resolution passed ut meeting Of
the Board IF Directors Of the State National
Bank of New Orleans. held this day:
Whereas. The Board Of liquidation. by reso-
luton adopted December 9. 1873 has invited the
Agent Of the State Of Louisiana. to take up and
hold for Its own account tho interest coupons Of
the consolidated bonds maturing January J..
az contemplated by act No. %. approved June
-. 1878 and specially referred to In said resolu-
whereas. said Fiscal Agent has already com;
piled with all Its engagements with the Board
of Liquidation. under watch i has already
cashed the interest coupons OF January l. 1877.
and of January ], 1873. and still holds same in
amounts largely in excess Of the actual cOlec-
ton OF taxes applicable to the payment OF the
same; and whereas, although said advances
by the Fiscal Agent arc secured and will doubt
less ultimately be paid by the collection Of taxes
specially set apart for the purpose. there Is yet
no assurance under the present system OF tax
collections that the receipts of such taxes will be
sufficient to reimburse the Fiscal Agent. within
such reasonable time as would justify further
advances and
Whereas the proposed remuneration Of per
cent interest is contingent, to be received by the
Fiscal Agent when an excess Of public revenues
shall create surplus funds such as are contem-
plated by act % approved j June ~, 1873: and
Whereas, at the present lime there has been
but q very small amount OF interest funds col
lected and paid In the treasury to meet the in
terest coupons of January 1, 1879 amounting to
about s410Oo0: and
whereas the tax collectors are not called upon
to make their returns until January next. rs
stated In the resolution Of the Board OF Liquida-
ton; therefore.
Agent Ia profoundly impressed with the sense
of the necessity of protecting the credit of the
State It's directors are constrained from an i'm
perative sense Of duty 70 the interests OF its
stock holders to decline 10 accede to the invita-
ton and request Of the Board Of Liquidation,
to take up and hold for account OF the bank the
interest coupons maturing January ], 1879
should adequate collections not be made in
time to meet said coupons at maturity.
furnished to the Board of Liquidation without
delay.
Respectfully etc. g. II. KENNEDY,
President State National Bank and Fiscal Agent
of the State Of Louisiana.
Col. Bush moved that the communication be
received and spread upon the minutes.
Adopted.
MR.. KENNEDY
then rose and said
Mr.. President-It would be proper for me to
say, IN addition to the communication Just read.
how the directors feel In the matter. You know
them all and can say that there is no body Of
men In tho State that feel q deeper interest to-
wards the State than they do.
We have In our meeting of this morning con-
sidered the matter. discussed 1t In every point
affecting the interest of the State, and Of the
l. n ,,n1 4vrn
ago. the duties of Fiscal Agent Of the State. we
contracted to do certain things. 1t was not
understood or contem PLACED that the financial
condition Of this country would come, to this
pass: we thought wo would be able to cover
all disbursements. or even Q part OF
py ba his has beeo thee
and therefore we We're compelled to send you
that resolution passed a. the meeting Of the
/ would further state shat.the Fiscal Agent and
the Board Of Directors will do all in their power
to aid and assist the board, and find some ono
ready to assume the liabilities of Fiscal Agent
should such be the pleasure of the board. II
any one Is willing to assume the obligations Of
the bank as Fiscal Agent. If any one Is willing to
airy, and reimburse the Fiscal Agent for advances
made, then we won d be willing to give him our
place. and we will z oppose the move nor
their wishes and will do all they can To-day
we sent the last coupons Of last July to be col
lected and we can do no more.
MOTION TO ADJOURN
was made. but Dol Bush interfered and said
Before adlourning, we ought TO take some
action In the direction pointed out by Mr.. Ken
nedy in his remarks We must do something
In reference to the coupons.
Mr.. Nugent-I movs that Mr. Kennedy's re-
marks be spread upon the minutes so that the
board have some authority for acting as Col.
Bush says.
Mr. Kennedy onls wanted to express verb.
ally the feeling Of the board. and said il any
body wanted to take the place Of Fiscal Agent
toto a M
and reimburse the Fiscal Agent tor advances
and expenditures. then that the board Of direct
ors will not interfere.
Col. Bush The Board of Liquidation is placed
in position which requires 1t not 70 take any
responsibilities other than those it is Invested
with If we do not act, it will be said that we
us apply to every institution of New Orleans,
and ask Of each OF them who wishes to become
the Fiscal Agent of the State?
That we may not he blamed. | suggest the ap-
pointment of a committee to ascertain from the
Fiscal Agent what advances he has made. and
then seek among the Institutions of tho city and
find out one that is willing to assume the re-
sponsibilities Of Fiscal Agent.
Mr.. Kennedy was requested t. write out his
remarks which were thon spread upon the
minutes. according to MIR. Nugen,'s resolu-
ton.
Col Bush then offered the following resolu-
ton, which was adopted:
In view OF the remarks made by Mr.. s. H.
Kennedy. president Of the State National Bank
the Fiscal Agent Of the State, proposing to
fed In his remarks which are spread upon the
minutes of the board.
Resolred. That a committee OF four members
be appointed for the purpose of ascertaining
from the banks Of this city whether any one of
them will accept the said agency on the cOndi-
lions proposed. and take up the coupons matur
ing first of January. 1879, on the consolidated
bonds issued pursuant to act No. OF 1874. and
the constitutional amendments adopted in
1874.
MIR. Perry Nugent president OF the Cotton
Exchange Auditor Jumel Treasurer Dubuclet
and Secretary of State Strong were appointed
on the committee.
THE NEXT QUESTION
was, when will the committee report? Col. Bush
suggested to day mt IL O'Clock, but he was met
with the objection from Auditor Jumel that this
was impossible as 1t would take more than one
day 10 interview the different bank presidents.
Gov. Wilt suggested that each bank president
be notified that to day "Wednesday at II o'clock
the committee will call on them. This will be
better than seeing ons after the other without
notification.
Mr.. Kennedy said that the presidents Of banks
after receiving the notice would have to call II
meeting of the directors, and that the commit