The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-04-01

+ gentlemen CHOSEN 10 BTapple WITH tlliS ttn
q many other grave issues that will come be
fore them we refer this matter, with fu
confidence In their ability and Discriminate
q to settle the same In manner entirely salts
/, | factory to the desire OF their constituency.
T lOuachita Telegraph
y According to the report OF the State Audi
! tor, submitted January J., 1879, the. tota
: estimated debt Of the State, when funding
] completed, will amount to S12136, 166 "a. L
. this we must add the. deficits OF interest due
Z as follows:
Due In 1874 ........,............. $s7 1866
\ 1875. Observation-Disclosures. 81 $50 :
1876. ACKNOWLEDGEMENTS 1877, S46 G
| 1877. ACKNOWLEDGEMENTS. 127, 98I Q
1873 ACKNOWLEDGEMENTS. All ,929 3
Debt IL. 1876, 1866
d All contingent liabilities are necessaril,
i omitted, as we have no data In regard to thi
!, portion of the States Indebtedness How
9 valid aud binding upon this people? How
81 much of it is evidence of value received. ant
how much Is evidence OF fraud, is now thu
: riddle OF the convention to solve. Funded OF
not, the right to inquire into the origin o.
} every item Of this Indebtedness is too vel
established to require reference or quotation
But we may refer to the decision OF our Su.
preme Court-lest 1t may have been forgot
TENN the case OF the New York Guaranty
dators ct al. the decision was o' rendered BY
the late Judge Egan last year. In that case
it was held that
l. In determining whether certain bonds of
| the State, condemned as suspected by the act
! Of May II, 1875, are legal obligations of the
State, and entitled to be exchanged for con-
solidated bonds, under the funding act of
1874, evidence will be received to ascertain II
they were issued In strict conformity to law,
issued, and for a valid consideration, they
/ will be held as invalid. although In the hands
| OF bona fide owners for value.
! Q. The bonds Of the State issued to the Mis-
sssipDi and Mexican Gulf Ship Island Canal
Company, under act Of the Legislature No.
| 116 OF the year 1869, are not valid obligations
Of the State.
Here Is q decision bearing directly upon the
validity OF the States bonded debt. There
must be valid consideration shown and
rests upon the bondholder, even though he
| be an innocent third party. But we maintain
that there are no innocent holders OF any of
the bonds Issued in the name OF the State for
| railroad schemes and other jobs. The world
had notice that the people 81 the State did
not approve these appropriations, and repu-
dated the obligation sought to be forced upon
them by a corrunt Legislature, even IN ad-
vdnce. OF any definite action by that body
The fact Of want Of consent by the tax
payers to become party to this debt was
notorious II we mistake not, the Chamber
Of Commerce OF New Orleans notified all sim
liar organizations throughout the world that
some OF the bonds about to be issued in the
name Of the State were fraudulent and would
never be paid. 1t Is perfectly we'll known, at
any rate, that the entire Democratic press
OF the State, speaking for the property hold
erS, fepudtated the contract, denounced the
column after column, in opposition to the pay
ment OF any Unnecessary expenditures made
under either Warmoth Dr. Kellogg.
1t ls o recognized principle Of law that
fraud vitiates all obligations, no matter In
whose hands they may be found What part
point out We do not know and are not In
reach Of means to undertake the task II we
did. But this we do know. that the opinion
obtains that large portion OF the debt has
the result Of downright spoliation. Under
such 9 suspicion, the convention must not |
avoid the responsibility. 1t must 60 to the
bottom OF every item and sift 1T thoroughly. |
II the prevailing idea be wrong, and It be
found that we are not only morally but legally |
bound for all the debt, then the condition Of |
things since 1874 establishes our bankruptcy
beyond question or doubt
The people are not able to pay the debt, and
their creditors know it. Our condition grows
place OF two dollars and fifty cents when the
debt was made. The "last feather of indi-
vidual reliability seems to have been put on.
and we find everybody in debt, suits growing,
mortgages closing out, the names of delin-
1uent taxpayers in the thousands, and cover
ing third Of the property in the State.
The picture is not OverdraWn; it will de-
scribe every parish In the State.
Last year was a year OF plenty, and good
crops everywhere. But prices were so re-
iuced as to find planters In almost as sad
1ther drawbacks had combined against them.
The interest On the public debt is per cent
IND f0ots up It's dreaded proportions regard
eSS OF the season or other evils. Think of it,
t amounts to only SS49,531 93 annually. Add
q This S2,32l ,l79 15 for current expenses of
he State, and you can have some idea or the |
BURDEN we now carry.
Prosperity is no myth. 1t Is the natural
Inspiring Of labor and economy We must :
make more than we spend il we hope to be /,
ich. !
Then, what Is the remedy? Reduce this !
ebt to Its legitimate amount; tx rate of !,
interest not exceeding ~ per cent. Abolish :
very useless office, and fix salaries to suit the
lines, remodel the judiciary SO as to make
more speedy in its work and less expensive
It's operation. Ii necessary, refund the
ebt and scale 1t 50 that 1t shall not exceed
he par value OF the valid bonds and other q
vldences OF indebtedness justly due by the :
tate.
Where is the need-what is the use of dis +
ussng this question OF Indebtedness !? There :
7ill be deficit for 1879, according to the :
,ualtors report page 239 of s45o,929 IS, on
uiAULu SAp0HoCS, w WllCU We muSJ Auu a
interest on the bonded debt, amounting to {
pal more, making the total actual deficit I
Dr. the current year 81, 800, AGO, and this enor- i
lous deficit is found notwithstanding the i
tate treasury will receive nearly 50 900 600 =
taxes from the people! Wipe out all Of the {
ebt, and there still remains the Indebtedness
the cities, towns and parishes and, what il :
lore, the individual debts OF the people, n
What can be expected Of a people in this con- i
ition They must have oats. The man is =
lsane, or an unfeeling creditor who expects
ae property holders of Louisiana to liquid
tie the fraudulent Indebtedness Of two cor
lpt State administrations, and maintain
at all respectfully. The question, Y
> we see it, Is not one Of honor or OF reputa- b
on, but question OF dishonor and Of self t
reservation. ii
Baton Rouge Capitolianl !
Eighteen years have rolled BY since the a
ny when the Pelican State placed her for q
ines in the hand Of the 'God Of Battles" &
er people staked their all il contest that
ley sincerely believed was q righteous one.
er public and the individual wealth of her