Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1879-06-10
THE DEBT OF LOUISIANA.

We have long supposed that for wild and
reckless State debt compromisers Tennessee |
could lead the nations, but Louisiana has de-
veloped a few that lead and leave ours far
behind. Last Saturday the chairman of the
committee on the State debt submit
ted to the State constitutional con
vention, in New Orleans, a majority
report recommending the payment of only
four million eighty-two thousand three hun
dred and ifty-eight dollars, or less than one
third OF the debt. 1t proposes that the bond
holders shall have less than three millions of
this small sum total, the remainder going to
replace money borrowed from the school
fund. 1t also proposes the issue of new bonds
in place of the few old ones not repudiated,
having thirty years to run and bear
ing four per cert. interest. The cool impu-
dence of the proposition will be apparent
to our readers when we remind them that 1t
is only four years since forty per cent. of the
original debt was cut off by scaling pro-
cess. The total debt was twenty-five million
dollars, and it was reduced to twelve million
dollars. To reduce this twelve million dol
lars once more and to less than three million
the propositions ever yet suggested in this
fertile era Of debt compromises. The con-
sent of the bondholders was obtained TO the
reduction of forty per cent. of their claims
upon the pledge that a tax of five and
a-half mills in the dollar should be per-
msnently guaranteed to pay the in
terest. A constitutional amendment
was agreed upon IN the legislature
&c this effect, submitted to the people, and
adopted by a popular majority of twenty
thousand; the Republican majority of that
year was about eight thousand, SO that the
guarantee of FIVE and half mills was voted
not merely by Republicans, but by large
part of the Democratic party, which Is now
in control of the State. The tax OF five and
a half mills upon an honest assessment would
yield the interest, and the State could better
afford to subject itself to this tax and cut off
other expenses than to enter the ranks of the
repudiationists But we do not apprehend
that the State whose chief city is the COM
mercial emporium of the south will reach
such AN extreme of degradation. The lead
ing presses of the State are opposed to it,
and the people before another week passes
will also make themselves heard in opposition
to it. The Shreveport Times, one of the
most influential journals outside of New Or
leans, says in relation to it that there 'are
/" legal, moral, political and practical reasons
"why no part of the honest debt of the State
=: should be repudiated." The New Orleans
Picaytoe says very emphaically ''the State
' should not, through its convention, or 9TH
a. erwise, repudiate any debt which 1t can
pay, or rather any portion OF any debt
" which it can pay. any for which it can be
ii held liable in any court of law or in toro
comseiemtis." And the New Orleans Times
declares that it is able to demonstrate
FIrst-That nearly II not quite all the fraudulent
bonds had long since been impeached anu con-
demned In the courts, and were, therefore, not rep
resented in the funded debt. -
SecOnd-That II any irregularities had escaped me
funding board aud the courts, they were Tar more
than offset by the scaling OF forty per cent TO Wnch
the accepted and approved bonds we're subjected
ThiId-That a careful and conscientious investi-
CATION would show that the State had received the
FOurth-That the funded debt, as 1t now stands,
had been ratified In the most solemn manner posi-
BILE, both by the people as whole, and by the
Democracy political organization.
Flfth-That the debt was honest" according to
the severest test that could be applied.
With these very pointed and emphatic ex-
pressious of opinion by leading journals be-
fore US, we are inclined to believe that hon
esty will yet prevail in Louisiana, and her
people will keep faith with her creditors.