The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-10

/ 'poiin8 tne state TO pay interest on
inc enelre advance. although means to make
partial payments would be on hama
ana deposited with the Fiscal Agent.
lnese objections were, at an early date. CON-
municated TO the Fiscal Agent. The enact.
ment finally received my approval few davs
before the maturity OF the July coupop. upozs
the presentation to me OF formal waiver ~
the part OF the board Of directors Of the Fiscal
Agent OF what conceived to be the obies.-
tionable features Of the law. NY opinior
then was and now Is that the provisions 81
act No 20 Of 1873. giving interest were only
applicable to advances made and to be u,ssie
by the Fiscal Agent, under the arrangements
entered into at the date OF his election, and
that the interest on the advances made II,
July, IL deemed proper, would have to be pro-
vided for by additional legislation, the adj
vances having already been paid and the in
terest being for q small amount. As the
period Tor the payment OF the coupons Of
January 1879, approached, 1t became obvious
that the sum to the credit OF the interest fund
for that year would be inadequate on the first
Of January to the prompt payment OF the
coupons.
When this fact became reasonably certain,
the Board Of Liquidation invited and REQUEST
| ed the Fiscal Agent to take up and hold for
It's account the January coupons until moneys
could come In to pay them This the Fiscal
Agent declined to do, for the reasons assigned
by 1t In a communication addressed to the
board, expressing, however, willingness to
resign the agency TO any bank which would
undertake to pay the January interest and re-
pay 1t the amount Of $685. so, coupons Of
former years, which 1t had cashed for the
State under the arrangement already referred
to. The board thereupon appointed COM
mittee to wait upon the various banks OF New
Orleans to ascertain whether any OF them.
would DO willing to accept the agency upon
this condition. The committee reported that
no bank could be- found willing to do 90. The
requirement by the Fiscal Agent. as a copdf-
tion OF his resignation, Of the payment OF thu ].
sum for which he was In advance has been
harshly criticised, and 1t has been asserted
that It's being insisted on prevented the SUBJ
stitution, In his place, Of new agent, who
would have advanced the January interest
had that condition been waived. Had
the Fiscal Agent made this waiver
and the board consented to q substi.
tuition OF a new one. whose sole
obligation would have been to pay the Janu-
airy coupon OF 1879, 1t would, In accepting the
resignation OF the present agent, have neces-
sarily released 1t from all Its obligations en-
tered into at the date OF It's election; hence,
the coupons OF 1874, 1876, 1876 and 1877, upon
bonds not yet funded but which will have to
be funded, and which are now secured as 10
their payment by the arrangement as afore-
said with the Fiscal Agent, would have been
Immediately uncovered. and the attempt to-
secure the January coupon would have bsen
at the expense OF the coupons OF former years.
Such proceeding on the part OF the board
would have been utterly unjustifiable. The.
legality OF borrowing money to pay the JAM
uary coupons OF 1879 was considered by the
board, and the conclusion was reached that II
had no such power. The funding law provides
the method Of and the means for the payment
OF the bonds issued under It. There Is no OK.
listing legal power or authority granted to any
one to substitute method and means Of pay
ment Of these coupons and bonds, other than
that provided In the act OF 1874. The Board !,
Of Liquidation s not q committee OF ways ana
means for the State but has only certain
special duties allotted to 1t. desire to say.
however, that the payment OF interest for
money advanced upon bond already bearing
interest, as was done under the act No. % Of
1878. should not be repeated. am greatly de-
sirous OF the prompt payment by the State OF
her obligations, but do not believe that tho
borrowing Of money on interest for the pur-
pose OF taking up special coupons OF interest
ls proper method OF reaching that result.
Over and beyond other objections, think
that such system introduces speculative
element In the consideration Of our State se-
curities. l think 1t preferable for all parties
That they should rest exclusively upon what
The State Is able to do from its own resources.
We should, then. no longer see the violent
fluctuations which the belief az to what q
particular individual or bank would do or not
10 has already given RISE 1t has been sale
that 1t was the duty OF the Board OF Liquids
Tors TO remove the Fiscal Agent and select
another willing to advance a sum adequate to
'over the January 1870 coupons. Apart
rom the fact that such course, as already
stated, would have uncovered other coupons.
here was no authority In the board so TO do
As mentioned heretofore, the scope OF the
iuties OF the Fiscal Agent Is defined in the
unding act and laws passed in connection
herewith. BY the terms OF the act OF 1877.
ne power to remove Is given to the board
solely Tor cause" which necessarily means
or legal cause, that is for the failure, on it's.
'art, TO perform some duty incumbent on it
" law, and no legal obligation being imposed
lpon the Fiscal Agent to advance the money
equired to pay the January coupons, it Is OBJ
'ious that the Fiscal Agents unwIiingness
Q do that which 1t was not legally bound to
% could not have afforded the legal cause for
ne removal contemplated.
The fact that the money liz not in the treas-
ny to pay promptly all Of the January con-
ons OF 1879, imposes upon you the necessity
I adopting immediate legislation for the
quitable distribution OF the funds now ON
and and to accumulate; and the occurrences
I the deficiency points to the necessity, and
imposes the obligation, of taking such steps
8 will secure the full and just enforcement