The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-17
THE BANKS REFUSE TO ACCEPT THE
FISCAL AGENCY.
The Members Of the R0ard Discuss the
situation, and Conclude That They
Have bone All They nmId.

prpSldentS about the ischl agency. made the
following
To tho Honorable President and Members 81
the Board Of Liquidation:
Eeotemep- Your committees. appointed by
resolution passed on the tenth instant. to Visit
the several banks OF this city, respectfully sub
NIT tho Glowing
On tho eleventh nndtwelftb ~ins'anfs your com
lslana National Bank. Canal. Now Orleans Ma
tional. Louisiana Savings Bank, Hiberufn
N%atiopnl fefmania National. Citlz@ns,, Fao-
plo'a, Union. Mechanics and Traders. South
ern. New Orleans Savings, and Mutual Ma
tional.
Tho Louisiana National and Germanja Bnnka
took your proposition under consideration and
all the others refused to consider the same. On
the twelfth. the Louisiana National sent m
answer declining to accept your proposition
and tho Garmania asked for further time TO
day. the ttermania sent her answer, declining to
ac"ept the said proposition.
The whole of which your committaa respect
fully submit and beg to be DISCHARGED.
ALLEN JUMEL.
Will. A. hrR0NG
PERRY NUGENT.
Suhioined arc The Answs ~ of the two banks
spoken 81, as having taken tho subject under
consideration:
LoUIsTAEA NATIONAL BANK.
New ORLEANS. December ~. 1879.
Hon. Allen Jumel. chairman. etc.:
Sir Tho proposition aubmitted by your com
mittee 10 this bank yesterday hos been carefully
considered by the board ~ directors, and. as
HFpsfIiFi, IL very TfRUfbtIllIy OhflIHS1.
Understanding from You that no change Of
fiscal relations was contemplated. unless IN
entire conformity With tho proposition sub
mitted, the board Of directors Of this Fank re-
frain from Offering n counter proposition.
Reg pectfully, ete.,
J. II. OGLEsBY. President.
NATIONAL BANK.
NEW ORLEANS. December u. 1878.
Alien Jumel. Esq. etr.:
ST. n our interview yosterday In regard to
10 tho Fiscal AppupV Of tho StntN did uubnr
stand You to say that tho amount Of $500. 600 had
r be advanced the state to bay tho expensos Of
us n copy Of the law referring to same for tho
Information Of my board2 also please give tho
exact nmonnt duo the FiscHl Agency.
JULIiE8 GAssARD. Vice President.
Tho request of Mr.. Cassard was granted. The
COPY 81 ne laT was sent to him. and also the
amounts due tho Fiscal Agent. subsequently
the GLOWING answer was received
GERMkNrA NArroHAL BAvK.l
New Orleans. December 10. 1913.
Allen Jumel, ESD. etc:
Dear fU-This bank declines to accept the
Fiscal Agency of tho State Of Iouisiana under
the conditions submitted by your committee.
JULES GAssARD. Vice President.
Col. Bush moved that tho report Of tho com
mittee md accompanying Ietters from the banks
be entered upon the minutes. Carried.
After the passage Of Col. Bush's resolution
the members Of the board opened n conversa-
lllD hkiiH ms IbSt TnFhFS u tfiNR, now 'flllf
the banks had refused to accept tho Fiscal
Mr.. Nugent said: In our interview with Mr..
Oglnsby. president Of tho Louisiana National
Bank. he snid no thought the credit Of the State
could be protected In some other way than by
having recOurse to tho banks"
Mr.. Jumel- L understood. from what Mr..
Oglesby said. that he would heip US II we
wanted to save the. credit Of the State. but that
he could not entertain our proposition ms spool
fed In the resolution.
Mr.. Nugent-l believe he said so.
Mr.. Strong -Wetold him that we did not wnnt
over $4,000 and that this vas the maximum;
that probably loss was sufficient, and hat tho
money to refuni tho said a4vance would be
paid out ot the general fund,
Gov. Nieholls We'll you have heard the re-
port Of tho chairman If tho committee, and
also lhe answer 1T tho banks; can any Of You
mako some suggestions as to the best way to
Rponker Bush-I would ask whether tho
Fiscal Agent or some m"mb9r pfesnnt could
suggest any plan. IA for myself. | do not 500
how, In the present state II %Hffairs. We cnn ne.
Mr.. Nugcnt-W We have exhausted our 90 wers.
and now is the time for those who talk 50 patri-
otieally about coupons to como forward and
MIR. Kennedy feel satisfied Tint the bank did
all it could. and that its action has met the pub
lie feoling, Thore was a tnlk Of my bank. cur
rying tho credit Of the Btate. True. It has q
largo %capital n largo amount of deposits. but
We must bs prudent. The bank has retired
md left the field open to any other institution
willing to assume the obligations OF Fiscal
Agent. and that is all 1t can do. The security Of
hhAFp 10 h'h - w wa thht utltipl ~
Mr.. Nugent- Suppose We could raise money
In some way to pay the interest coupons only
Gov. Nicholls-fhe board has no power to
borrow money on the responsibility Of tho
state. except by Legislative act. Whom we made
the agreement four years ago with tho Fiscal
Agent ws imposed no obligation upon the State
he has compiled with his contract. and We have
no right to go any further.
Mr.. N1gent- SuppOse that several men Of
means subscribe to pay the interest coupons.
could We not entet into an agreement with
/ them2
Governor-Any agreement that binds the
State must be ratified by legislatiye act.
Col. Bush-The tito Of the law docs not JUS
tIty that course 81 actiOn.
Gov. Nichols The contract entered into
when the bank became Fiscal Agent specified.
believe, TINT the law referred to advances made
by him. ! have stated already that ] demurred
to signing the act. because | didn't think it had
references to future. but to past contracts.
Coi. Bnsh-This is why an average date, the
first Of january. has been specified.
Mr.. Nugent-AnyhoW, | do not think tho
Board has q right to make any agreement.
Col: Bush and the Governor were Of tho same
Gov. Eicholls-Though | believe that the act
meant advances to be- made by the Fiscal Agent,
yet do not wish to impose my construction oil
the law upon any one.
Col. Bush think the net Of 1874 stated that
we should attend TO tho collection Of taxes.
Here the speaker quoted several passages oil
the aCt.l
Mr.. Jumel-We could also mako a revenue
bill.
AT TIL STAGE
OF the conversation Messrs. Fl. A. LeSassier. f
G.. Feinour, J. l.. Gautier. g. Townsend and II
w. Conner. members Of the Stock Exchange
entered the room. Mr.. LeSassier. introducing
himself IA chairman and the other gentlemen
"a members OF n committee Of five from the
Stock Exchange, addressed the board. and said
" We come as II committee from the Stock Tx
change to present to your honorable body the
following resolutions passed by our association
this morning:
Whereas. The Fiscal Agency Of the State has
declined to comply with ths in vitdtiOn and re-
quest Of the State authorities to advance the
amount that may be required TO meet the Jan
uary interest on the public debt and b9 rein
bursed by the collection of taxes: be i
ReSoiccd. I hat it Is the sense Of this Exchange
that the failure to meet the said interest on tAt
public deb. would be a public %calami'y, the
effects Of which will be disastrously felt, directly
and Indirectly. in every financial CORPORATION
and institution Of this city, as we'll as By every
individual interested IN the present and future
welfare of this State; and be IL further
Resoired, That 4 committee OF five be appoint
ed and instructed TO take Immediate action. anG
cooperate with similar committees Of Other
bodies. in such measures rs will tend = main.