The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-11-20
MAYOR PATTON'S MESSAGE,

The message Of the new Mayor indicates q
new departure in the financial affairs Of the
city There may be widely different views
as to his proposition to fund the whole CITY
debt at fifty cents on the dollar, and Tins re-
dt1ce 1t to ten millions: but few citizens, out
side of the holders Of city bonds, will oppose
his proposition that. the first obligation Of the
municipality is to pay It's police, school teach
ers and other employees, and to provide for
the proper sanitary administration of the
city. The prosperity of the city will be best
advanced and the public credit best sustained
by this policy and In it, we trust. the Mayor
| will meet with unanimous and cordial SUD-
port from the Administrators.
We hesitate to unreservedIy indorse the
Mayors proposition for an adjustment of the
city debt. That the premium bond scheme
has proved q failure there Is no doubt, and
that an adjustment Of the debt must be made
Is obvious. But will 1t be just to confound the
whole mass of debt, good and bad, into one
mass, and then scale it fifty per cent? This
Is q question for grave consideration. Last
spring the DEMOCRAT took the ground
that the city should plant itself firmly on
the consolidated bond act Of 1862 as constitu-
ting the basis Of the only legal debt of the
city. and adjust or compromise the claims
created subsequently and In plain violation of
that act from that standpoint or position. We
have seen no reason to change our views. The
consolidated debt is az sacred contract be-
tween the people of New Orleans and the
holders Of the bonds as WIGS ever created. It
rests upon precisely the same ground as the
State debt Both were funded and ac- |
cepted by the people, one by the people of the |
State. the other by those OF the city IT the |
consolidated city debt may be repudiated or
tainted, then there Is no sacred public debt
and no reliance TO be placed In public pledges
and credit. We have stood by the consolidated |
city debt upon the same ground that we have
stood by the State debt and defended it's in
tegrity and sacredness.
We do not wish, however, to be understood |
rs favoring the reputation of the premium
bond debt, or as being hostile to the settle
mont proposed by the Mayor. We believe, In
fact, that the holders Of the premium bonds
have an equitable claim; but of what
Of the bonds ls the question. That
must be determined by the terms of @ com
promise on the judgment Of court. If the
City Council can effect an adjustment accept
nble to the taxpayers on the one hand and the
on the other--we mean premium
md consolidated bondholders- SWELL and good,
sven Ii it be on the basis OF fifty cents on the
lollar, as the Mayor suggests.
We do not propose to oppose such an adjust
ment, il the bondholders are willing to accept it.
We do believe. however, that the credit of both
,he city and State will be sustained end i'm
lrovedby the authorities planting themselves
IN the act of 1859 and making oil settlements
md compromises from that standpoint.
The credit Of no community can be i'm
proved by the recognition of Illegal claims,
hough it may be seriously impaired by con-
oundng good and bad obligations into one
mass and placing the creditor who ventured
N the sacred and legitmately made pledges
# the people, on level with him who bought
he illegal obligations issued by corruption
SITS and ringsters in defiance of the peoples
will.
These are delicate questions for the new city
to handle. There is not one
olar of the debt-consolidated or pre-
the city has not an equitable |
light to have scaled, and there are mil
ons Of it the holders Of which have no other /
lain upon the city for it save an equitable {
ne. It will require wisdom and justice in the I
ighest degree to adjust SO complicated bust s
Gss.
We congratulate the city. however, on the
ostion the Mayor has assumed, and whether T
Is proposition offers the true and just solu- n
on Of the debt problem or not, it at least in d
ugurates new departure, and opens up this I
question to discussion, and v
lggestion, and, we earnestly hope, satisfac- Z
ny s0ttlGment. 4