The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-18
SETTLEMENT OF THE STATE DEBT.

|
igputed the legality OF most Of the Original r
laims, alleging that they were created WITH
lit conforming to certain details prescribed
y law, and therefore that, and upon that
round alone, they should be repudiated. 8
Ience we find the report Of the majority OF q
he Committee on the Public Debt recon- t
1endinp the notification or reputation 81 Q
billions of debt for which the State received g
ea!. substantial and adequate benefits, ana z
he recognition, as a sacred claim, 81 the New
orleans and Nashville Railroad bonds, Tor
which the State never received one dollar 10
eturn for It's money. In the case OF the mil
ions Of bonds it Is proposed to reject, the
echniealities of the law were not rlgldly
observed, while In the case Of the New
Orleans and Nashville Railroad bonds these
were strictly complied with.
Thus we find by applying the narrow rules
If jurisprudence which are observed py
Justices of the peace and In ordinary courts
in vulgar law suits between Individual It'll
gants to the settlement Of q great question
Of public policy, the astounding PROPOSE
tion presented to q sovereign State, that
the sovereignty may rely upon the techni-
caIities OF the law to rob its honest creditors
and that sharpers by Winding these technl-
calities may rob the sovereignty.
The attitude Of those delegates who hold
that the settlement OF this debt is beyond
the absolute control Of the State, and that
the bondholders may enforce their claims
through the Federal courts, is equally abb
surd, while 1t antagonizes the fundamental
principles Of our government.
The propositions Of the majority report,
without regard to the equities OF the case,
without regard to any question Of public
policy, assail, upon legal grounds, nearly
the whole funded debt. The attitude OF the
bondholders who threaten the State with the
Federal courts, actually strengthens the
hands Of the regulators, and here both these
extreme elements meet upon common
ground on which the honor, credit and SOW
ereignty of the State are all threatened with
destruction: for Ii the debit NAV be- attacked
port recommends, the Issue is one that prop
erly belongs to the courts; and If, on the
other hand, the bondholders may resort to the
courts for redress against the action of the
State, the State may justly plead the fraud
and the violation of the law In the creation of
the claims.
Far be 1t from us to hold that the State has
no right to take into consideration the mat
ter Of fraud or illegality in determining
her duty to the public creditors. When
no act Of the legitimate government on
its restoration has accepted or validated
such claims, SO as to warrant honest men in
yesting their capital Or 50 long as those
claims may be traced up and singled out,
they should be blasted by the breath Of the
sovereignty and left to Wither into ashes In
the hands Of those who Ventured to spec
ulate upon the misery and restitution Of a
people, and who In their greed upheld the
arm OF the robber and nerved the cruel heart
Of the oppressor.
Butts this the case which Is presented to the
Louisiana Convention? We think not. The
Legislature and Executive elected by our peo-
pie, and fought for by our people; the courts
established by our people; the Democratic
conventions held In the State, have recognized
the debt as now funded. "A funding board
composed Of officers Of our elected govern
ment has funded a portion Of the debt. A
large proportion Of the debt was ere
ated by our ancestors, before the war, and
before many OF us who are now taking an
active part Id public affairs were born
Scarcely consol is now Ia the hands Of the
} men who bought the bonds issued by War.
, moth or funded their claims under Kellogg
After the course pursued by Gov Nichols
and the Legislature OF 1877 after the decisions
Of our Supreme Court and the continuation
Of the funding process by our own govern.
ment millions Of this debt passed into the
hands of capitalists who believed 1t gooC
!, and safe investment; many capitalists
purchased the consols to aid ant
strengthen the Nichols government
and our merchants, bankers ane
, insurance companies bought them In gooc
| faith, and to the amount Of six millions
Time and the acquiescence Of two generations
, Of our own people forbid us to repudiate thu
ante-bellum debt, because it would be an ac
Of saerilege. The acts Of our own govern
ment, Legislature, courts, press and people
should deter us from assailing and inyal
!. idating the bonds which our own people anc
our own friends abroad have purchased or
the faith Of our utterances, and relying upor
Y our honor and not upon Federal courts fol
their payment.
! We cordially agree with the venerable anG
i distinguished delegate from Caddo, who was
in the happier days OF the State member o.
the Supreme Court j udge Land-that neither
acts Of legislation nor decisions OF courts car
validate fraudulent public debts, which are
crimes against the people, but we believe that
l If that gentleman were called upon, he
would say that, under the cireum.
stances we have mentioned, the holders
of those bonds are entitled to some
consideration from the State and that
| the equities OF the case demand that these
| claims shall be recognized. We believe that
even Col. Lott and Capt. Kidd, and Judge
! BEdger, and Messrs. Vance, Ogden and