New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-03-22
THE NEV-ORLEANS P4NIC.

II ought to be distinctly understood that
the sduall in New-0rleans bank parlOrs is
due entirely to causes affecting the banks OF
that city exclusively. 1t is one of the effects
of the prevalence of rampant spirit OF re-
pudiation. Since the Nichols government
took control in Louisiana, there has been
manifested a growing disposition to refuse
payment of public debts, and to rob public
creditors. Collection Of taxes has become
very difficult Revenues have fallen off greatly.
The Democratic governments of the State
and of the City, instead of firmly insisting
mon a manly performance of all contracts,
have paltered and hesitated, and have made
the situation worse by iDeticiency. con-
stitutlonal convention has been called, and it
is openly declared that new scaling OF the
debt is TO be one of its fruits. Bonds of the
State and City, to a large amount, have been
taken by many of the best banks III New-Or-
leans, in the faith that the sO-called "conser-
"vative" sentiment, which had promised such
brilliant things as a consequence of Democratic
success, would have power to restrain the
ignorance and knayery which demand repu-
diation. But it has become very doubtful
whether the bad elements can be restrained,
or whether the conservative" and property
owning citizens themselves are disposed to
make the united and resolute effort necessary to
defend the public credit. Consequently bonds
have been sinking in value. The banks
which hold State and City bonds largely have
become distrusted. A few were forced into
suspension by rapid withdrawal of deposits,
and then other banks, which are perfectly
solvent if the State and City do not plumber
hon haap fn ,ot
their payments until their funds on deposit
here can be obtained.
1t is evident that this trouble is the direct
consequence of assaults upon the public credit
in LOuisiana-of the prevalence there of that
spirit of reputation which prevails so gener-
ally i'll Democratic ranks There is no strn-
gency whatever in the money market, properly
speaking The whole difficulty is that GER
tain people of Louisiana have labored to break
the credit of their State and of their chief
city, and the blow falls first upon the banks
which have had confidence in the integrity
and honor of the people there. Those who
caused the trouble must cure 1t. They can do
so only by prompt, determined and united
effort to defeat the regulators, and to take
care that every obligation to public creditors
shall be promptly met.
Among spectators here there is shown some
disposition to cause undue strlngency and alarm
in the money market, on account Of the
events in New Orleans and the approaching
settlements for Government bonds. To in
crease the distrust, rumOrs designed to affect
the prospect of some leading stocks are in
dustriousy circulated. Yet the power and
disposition of the Secretary of the Treasury
to prevent undue stringency in the money
market should be fully understood, and most
of the rumors circulated have met with inn
mediate official denial The amount OF cur
rency forwarded to New-Oreans is about
81 900, 900, and 1t is now believed that six
per cent bonds amounting to over 81 80, OOO,-
900 have been called, but not yet turned in
for redemption, upon which the Treasury of
fers to pay at once the full amount of prnci-
pal and interest. 1t seems quite impossible
that any pressure for money can exist for
more than day or two at "a time, as long as
the Treasury is ready TO pay ont so large an
amount of cash on demand. Probably it
would be well, however, for the Secretary to
make such arrangements that bonds can be
redeemed at the Sub Treasury here, to avoid
the delay in sending to Washington.
A rumOr that the Erie Railroad was trying
to borrow money abroad was sent over by
cable, apparently from the same source by
which many other stock -jobbing rumors have
been circulated, but it was at once officially