New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-03
,SOTTHERN FIN4NCIERS.

/ of the State debt as it now stands under the
/ latest funding act, but reducing the interest
| to per cent for fifteen years, and per cent
! thereafter. At the same time, an article
d" declaring the whole debt a valid obligation
/ (Which shall not be violated" was stricken
out, and an article cOnfiscating the money col
! lected from the interest tax up to January
! 1850, and applying it to the general expenses
of the State, was also passed. Some days
ago. the Convention had passed an ordinance
| directing the Treasurer TO Tepudiate the IN
terest due July although the money for
! this payment and that of January L has been
collected under a solemn pledge of the faith
of the State to apply every dollar of it to the
principal and interest of tbs public debt, the
! Convention steals it without the slightest
! hesitation. With a like calm superiority to
ordinary considerations OF decency or hon
esty. the interest on the debt is to be reduced
/ from to per cent. Really, the astonishing
/ feature in the business is that such a COnyen-
| ton did not repudate the debt altogether
! That certainly needs some explanation.
Not long ago bOndhOlders in this city were
! asked to subscribe money to a fluid for securing
| from the Convention a decision less untayOr-
! able than absolute reputation. Ii was as
serted, by persons whose statements some
/ prominent Democratic boudh0lierS deemed
! Trustworthy, that partially favorable action
/ could be secured by certain parties IN the
/ Convention and in any election thereafter, but
| only by the payment Of sundry thousands OF
/ dollars. There was strong disposition, 1t
! was said, to wipe out the debt altogether.
| Many proofs were cited. But, it was added,
| payment of some part Of the debt could be
| obtained bv the use of the proposed sum of
money. The subscription was circulated; with
what success we cannot say. 1t was a matter
of common remark, however, that Louisiana
"was for sale" The question was how much
cash down would induce the State to pay part
of its honest debts. lnasmuch as Mr.. Illden
was commonly mentioned as a large bond
holder it was supposed that the agencies to
winch Creamery Park resorts i'll an emergency
would be employed with effect. Propositions
! for partial payment of the debt, with greater
or less reduction of the principal, of the in
/ tcrcst, OF both, were introduced and debated,
| and the people who are interested in the bonds
were gratified to see them advance rapidly
! from about 40 to about 40 cents on the dollar.
! II was presumed that necessary arrangements
! had been made, and that something better than
! total reputation would be secured. Now comes
! the new proposition to repudiate the whole OF
! the interest this year, and fOuT-seyenths of
! the interest for fifteen years 10 come. The
! iobbers and spectators have something to
! show for their money. Really, is there
any other State in the Union in which such
! things as these are done
Not many years have passed since louisa
/ oil
! duced them to surrender part Of their just
claims, on the condition that yearly tax
! should be established by the Constitution, be-
yond the power of any Legislature to disturb
! or change it, the proceeds OF which should be
! applied wholly to the payment OF the interest
and the principal of the reduced debt. The
! Constitution itself was framed accordingly.
! In it was recorded the solemn pledge of the
public faith. In reply to doubling creditors
| who asked whether State which had forced
| creditors to assent to one compromise might
not repudiate that pledge and substitute
another, Governor Kellogg publicly declared
| that if the new obligation then given was not
valid, cit would not be possible for the State
! "Of Louisiana to make q good bond" Yet
! those very bonds, after having been respected
| for a few years under Republican rule, and
! having been bought at high prices by Northern
capitalists of the Democratic persuasion-at 20
! 10 50 by Governor Tilden, it was s2id-vhcn
! tbc Republican Government was Overthrown,
| and the Nichols Government was foisted upon
! the people, have recently been kicked about
! tbe markets at about 40, and are classed rs
extra hazardous by everybody. The reason is
! that. first, conspiracy Of Democratic officials
and property-owners so robbed creditors in
| the assessment of property and the collection
! of taxes that the constitutional tax failed to
cover interest ON the debt and the methods
| of Louisiana quickly became known as the
! most reckless system OF assessment and taxa
! ton anywhere to be found and, second that
! the Democratic property owners, being indis-
posed to pay even the insignificant pittance
| then eIacted, began to clamor for a State
! Convention, called one, and recently passed
| in that body an ordinance repeating the tax
! once solemnly pledged by the people for the
| protection of their creditors, and substituting
| tax which, it is well known, will not cover
| interest on more than half of the debt.
| Apparently, the Convention was " for sale"
| Those did not SANDER it, we have reason to
| infer who confdentially informed Democratic
bondhoders here that money, and money
| alone. would "make the mare CO." If
anybody wants the State OF Louisiana to
be one-half honest, or one-Quarter honest,
! let him step up and pay the worthy
representatives of worthy constituents. Viz
tue is not so plenty or cheap in Louisiana
that any public man can afford to waste it
without compensation. And these are the