The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-14
A QUESTION OF DEBT.

The Pcdg,ne's recent reply to certain
observations Of the New York Bulletin
does not meet the difficulty suggested
by the New York journal and CON
cedes what Is not sound In law or fact
The Bulletin suggests that compromise or
scaling OF legal debts would require the as
sent OF both parties; to which the ncav,me
has no better response than that the city can
only pay fifty cents on the dollar Of Its al
legged indebtedness, and that there is no
power In the law to compel her to pay more
Neither proposition Is true or sound
To say that corporation having taxable
property Of hundred millions cannot pay
the interest on its debt, even at the low rate
of q per cent tax. is preposterous, assuming
the debt to be as large as pretended. It Is
even more extravagant to assume that the
law and the Judgments of courts in favor OF
the legality OF debts against the city cannot
be enforced against this as well "a all other
judicial persons. The eontumaey to which
| the PieaVIue refers as the shield Of the city
against the enforcement of the law is simply
another word for revolution and resistance Of
the lawful authority Of the State.
| There Is no necessity for the city To assume
any such revolutionary and anarchcal atti-
tude. The answer of the Ifcayune to the
Bulletin Is therefore Inappropriate, unsound
| and calculated to place this city in an attitude
| Of stand and deliver"-of sheer reputation
towards its creditors. A great commercial
city like this cannot afford to occupy such a
position. We are satisfied that our city nd
ministrators do not contemplate It. What
/ N g., bal
iefin would have been that the lrgoi creditors
of the city, those holding unchalenged or ju-
dcially determined lepal debts, would be met
by the city in spirit Of fair and liberal com
promise. wherein such creditors would be in
vited TO concur in an adjustment Of their
claims, SO as to tighten tho burden Of the city
and render their securities more real and GER
tain There is nothing Of contumacy or re-
| pudiation in this.
| II claims against the city, to use the words
Of Judge Billings, are stricken with invalid
| ity' by virtue of their Illegal and unauthor-
| lied creation. the holders of such do not oc-
cupy the position which requires their con
currence in any proposed adjustment. The
law by which the city, like all other trustees.
must be governed will protect the corporation
however, quite different with those whose
debts are determined to be constitutional and
legal The Bulletin is quite just in assuming
that the assent of the holders Of such debts is
essential to any just and legal adjustment
The question now pending before the Su-
preme Court will determine the amount OF
these legat debts of this city.
| Then the hcdy,me may be in order with It's
scaling proposal But, when made In adj
vance, or in Disregard of the judicial discrimi-
nation between debts based on q solemn and
constitutionally protected contract and n
| debt OF five times that amount. and resting
upon violations Of contract and Of the man
dates of the Legislature it Is nonsense. Such
a hotch- potch Of mixing legal with Illegal
debts, with a view OF scaling on the horizontal
plan OF the Pcaptme, does not appear to us to
be within the power or duty OF the city
administrators nor wise, Just or equitable in
Wow