The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-13
THE PUBLIC DEBT,

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| The columns OF the DEMOCRAT have beer
generously opened to the discussion of sub
jects upon which the attention OF the ap.
preaching convention will be called. Ii any
| judgment can be formed of the prevailing
public opinion from the Communications
learned or otherwise, in regard to the public
debt, 1t is decidedly for reputation or q seal
ing In large proportion.
LII anything can be demonstrated by facts
and statistics, 1t Is that the State and the
corporations are unable to pay. In this d.
lemfna the question arises, what Is to be
done2"
III 1t had been possible to distinguish be-
tween the legitimate and illegjtimate part of
the debt before funding, the authorities would
have had the right to discriminate and Glow
only the just debt as a claim against the
State But it Is now too late to distinguish
between the just and the unjust, and the State
Is equally bound for the whole. The bond
holder demands the interest due on his bonds,
and alleges that the State has contracted to
repay his capital at certain far-remoyed
date, and In the interim to pay the interest
semiannually. This is a contract between
latter demands compliance II there be
refusal on the part of the State to pay, 1t
is called reputation. If there be default
only from sheer inability to pay there is no
willful violation of contract, but merely a
passive one. The creditor Is put in mora by
the simple demand. This Is the point ar
rived at between the creditor and debtor at
the time that the convention Is assembling.
1t is expected that this convention will pass
upon the question in some violent manner
1t Is not in the province of conventions to
treat such subjects. 1t would be more that
II the Legislature who holds the strings of the
purse. 1t is not easy to understand what the
convention has to do with the matter, or what
1t can legally do 1t represents the people In
its sovereignty lit s all powerful to the extent
OF that sovereignty for governmental pur-
poses. The only restraint upon it is that it
cannot relinquish or disregard Che duties as
sumed by the State to the constitution of the
United States, in which is the clause that no
State can pass any laws impairiDR the oblga-
tions OF contracts. 1t may we'll be supposed
that the clause had in view the action of the
Legislature which Is the iaw-mak1ng power,
and was particularly intended to apply to ii.
The binding force of the clause can be ex-
tended to conventions only by implication.
A convention passes ordinances, it ordans
but these ordinances become the organic
Legislature. However, the clause OF the con-
stitutidn does not specify, and the implica-
ton must hold good.
Ii, then, neither the convention nor the
Legislature can violate the obligation Of a.
contract how can either repudate? ByI
direct refusal would be trampling upon the
law; by abstainiDg from payment, either from
i'll will or inability TO pay, would result in the
same consequences as to any private debtor
What are the legal rights OF the bond
holder? Suppose the bonds were all held by
the citizens OF foreign power, and upon
the complaint Of the citizens. holders of the
bonds. the foreign power should undertake to-,
enforce payment? BY the law of nations il
would have the right it could take possession.
by force OF the country Of tho debtor, treat it
as q conquest, levy taxes or confiscate public
and private property, to the extent at
least OF satisfying, the demands of the
creditors. The bonds in the case of
the State. OF Louisiana are not all In
the hands of the citizens Of any one
power, but are greatly disseminated. This
does not change In any manner the legal as
pect of the question. The complaint Of one
single bondhoider would be as good as that Of
the whole. The United States, upon the com
plant OF citizen holding bond of a foreign,
power, would have tue right to call upon that
foreign power for compliance. Would the |
United States have The same power against a
Sthttf 1t seems an anomaly that it would
not. But such would re found to be the fact be-
cause no such power has been conferred by the |
States III the constitution. Theright of action |
OF the United States in the case Of a foreign
State would be derived from its duty to pro-
tect its citizens under the law Of nations. 1t |
would result that the citizen, bondholder |
would be in q less favorable condition than q |
foreigner. The legal rights Of bondholder |
are one thing, hlSremedy, practically, is an
other. There is not any probability Of the in
reference OF any power in favor OF the pub |
lie creditors. they must do the best they can
in the circumstances. Upon their demand of
payment, we reply, we can't pay, therefore
we WON'T Well, but that Is reputation.
Be 1t 80; we can't help it.
One OF the communications on this subject
has very curt and eloquent phrase. It says
1t would ruin u5 to pay the capital, and starve
us to pay the interest. Others say it is rob
berry to make us pay fraudulent bonds. The
robbery Is lot to come; il is accomplished
we have been robbed, and we owe the debt.
1t Is as legal as 1t can be made.
The pubic debtor or the State must be
assimilated 10 the private debtor, and IS
truly said by venerable old statesman Mr.
Charles Gayarre. Gle must be called upon to
pay according to his capacity" 1t is very
difficult indeed to ascertain what is the ex-
tent OF taat capacity, that is, In other woods,
what amount OF taxes con be sustained by
bility, is found here. Taxes, and perhaps
other causes, have entirely destroyed the
value OF property in real estate. Such pro-
perty Is the real basis Of taxation and the
source OF AL wealth. III every country. Pros
perity will never smile upon our country until
it's commercial value is restored Why is it
that there are so many persons out Of work
The want OF means to employ them. The
farmer cannot ma &c something out of nothing.
He cann1t sell or borrow on his land he has.
no eredAt for the advance of susplies, because
his band is no security, having no commercial
realiza1le value; and why? Taxation! Then
the policy to be followed first, IS TO restore to
property 1ts proper value by relief from tax
greatly reducing it.
Ihe .conve0tion cannot repudiate the public
d ~ II Gannot authorize the Legislature to
do 1t. That idea Of reputation is repugnant
TO the feelings Of tho honest men and proud
men, and attaches something unpleasant to
every man; We must avoid touch iag 1t If we
can. Shall we whip the devil round the
stump or dodge it in some way? If we can't
Go all that we would wish, yet we've got to
90 SO netting, and the sooner we do it the
better. Suppose that taxes ON real estate
i1h nod .s..I.x