The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-10
! THE NEW ORLEANS DEMOORAT FRIDAY JANUARY 10 1879

., 1879.
advantages Of the position, 20 far - the legal
duties are concerned, were all In favor Of the
agent. It was suggested that possibly these
advantages were 80 great that the Board
might utilize them for the obtaining Of some
corresponding advantage to the State. The
result OF this suggestion was an announce
ment by the board, In the exercise OF their
power OF election, that they would not con-
slider any person suitable candidate who
would not be willing to cash the coupons
The contract with the Fiscal Agent was to
pay the coupons Of No. Q, January 1, 1875;
No. 4, January /, 1876: No. 9, january, 1877:
No. 7, July l, 1877; No. 8. January /. 1878.
It Is to be remarked that the State con-
tracted no obligation under the promise It
was to pay no interest. The Fiscal Agent, TO
be elected was In reality to take up the par
ticular coupons and TO walt for payment from
the interest tax as collected. II is true that
the board agreed to elect for four years, but
all parties knew that this provision was SUBJ
ject to the power vested In the board Of re-
moval for cause, and subject also to the full
control OF the GeneralAssembly over the whole
subject matter. Prior to the announcement
by the board OF what it would consider neces-
sary to make candidates eligible, II may use
the expression, It was generally supposed
that there would be a number Of applicants
for the position, but on the day OF election
only one single candidate offered the preseat
Fiscal Agent-who was consequently elected.
The State National Bank was elected, and was
qualified, and has carried out the obligations
under the stipulation Of the board. It is the
holder Of coupons which are yet unpaid, about
the following amounts:
1877, funds Of 1876 ............ $7S,547 90
January, 1878, fund OF 1877 ....... 125,o2o 90
Total. ACKNOWLEDGEMENTS. $205,4 so
With the payment Of the January coupon
OF 1873, Its obligations, under the stipulations
imposed by the board In electing the agent,
ceased, except In 80 far as coupons OF former
years, covered by the agreement and annexed
to bonds yet to be funded, after that date, are
concerned, and, therefore, both the agent and
the board fell under the rights and duties OF
each, solely and exclusively, as gagged by the
law. Under this condition Of things, when
the July coupon Of 1878 was about becoming
due, and 1t was apparent that delay would
occur, the Fiscal Agent agreed to make fur
Their advance for the purpose Of securing
prompt payment. The attention OF the Gen.
eral Assembly Of 1878 was called to the
stipulation made by the Board Of Liqui-
dalton In electlng the Fiscal Agent,
and to the advance made by the Fiscal Agent,
in cashing coupons covered by the obligations
assumed. Act No. 28 OF the Extra Session
provided for the reimbursement OF the Fiscal
Agent Of the amount OF his advance, together
with the per cent interest thereon from the
Redemption OF the debt fund.-" fund to be
composed Of any surplus as mentioned in the
Funding act and article Of the constitution
10 which referred. could not give my ap-
proval to this enactment; first, because IT
seemed to allow interest to the Fiscal Agent
from fixed past date, without reference to
The time Of actual payment; and, second, be-
cause it delayed the application Of any sum
to the credit OF the redemption Of the debt
fund, until 1t reached the sum Of the advance,
thus compelling the State to pay interest on
the entire advance. although means to make
partial payments would be on hand
Rnd deposited with the Fiscal Agent
These objections were, at an early date, COM
inundated to the Fiscal Agent. The enact
ment finally received my approval few days
before the maturity Of the July coupon, upon
the presentation to me Of formal waiver on
the part OF the board Of directors Of the Fiscal
Agent Of what conceived to be the objec-
tionable features of the law. My opinion
then was and now is that the provisions Of
pct No. % Of 1878, giving interest were only
applicable to advances made and to be made
by the Fiscal Agent, under the arrangement
entered into at the date Of his election, and
that the interest on the advances made In
July, II 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 small amount. As the
period for the payment Of the coupons Of
January, 1879, approached, 1t became obvious
hat the sum to the credit OF the interest fund
Tor that year would be inadequate on the first
bf January to the prompt payment Of the
coupons.
When this fact became reasonably certain
The Board Of Liquidation invited and request
ID 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 it 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 S205, 474 so, coupons OF
Iormer years, which 1t had cashed for the
State under the arrangement already referred
to. The board thereupon appointed a COM
mittee to wait upon the various banks OF New |
Orleans to ascertain whether any of them |
would be willing to accept the agency upon
his condition. The committee reported that |