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

Fund 1874 cor ,ec r
Ir...si tosc .....,..s... 1852 O
E nI ,org .................. 167,846 O
| - "Nu Ao'f.-...... ................... 1881 n
! Total. -........................ .s47O,675 s
This increase Of deficiency results from TN
carrying on Of the funding process.
When the present administration came int
power the Board OF Liquidation under II
finding the existence Of deficiency In the In
terest fund OF the previous year, and desirou
OF protecting to the full extent Of It's power tn
credit OF the State, made an arrangement
with the Fiscal Agent, by which It assume,
the obligation OF taking up and holding TO
Its own account some OF the coupons OF In
terest which would remain unpaid for the wan
OF collection Of sufficient funds The charac
ter Of this arrangement and the circumstances
under which it was made were as follows
The fiscal agency was established by the sec
ond section of act No. 8 Of 1874 (the funding
act, and Its rights and duties will be found
| enumerated In that act and In acts Nos. 5,
and N OF 1877 and act No. 28.of 1873. The act
creating the position is signally silent as tt
any duties to be performed by the agent
When the present administration came In. n
found the position of Fiscal Agent one O,
great advantage and profit to the agent but
with no compensating obligations towards the
State. With this condition OF the duties Of the
Fiscal Agent, the State government also found
not only the January coupons of 1877 unpaid.
but large number OF deferred applications
Tor funding, which made 1t certain beyond a
doubt that the funding OF these bonds would
so increase the volume OF the funded debt.
that the coupons OF 1874, 1876 and 1876. at
tached to the bonds to be funded, would not
be promptly paid.
The government was entering upon It's du-
Ties under the most adverse circumstances.
The people poor, outstanding personal in
debtedHess large, State, paFeehial and NUM-
cipal affairs suffering from the mismanaee-
ment and spoliation Of the past, the books Of
the State had been distracted and the opera
lions OF the government retarded for causes
not now necessary to recapitulate. Under
these circumstances the Board OF Liquidation
was called upon to elect Fiscal Agent The
advantages of the position, 30 far az the legal
duties are concerned, were all In favor OF the
agent. 1t 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 q suitable candidate who
would not be willing to cash the coupons
The contract with the Fiscal Agent was to
pay the coupons Of No. 2, January /, 1876:
NO. 4, January 1, 1876; No. 6, January 1, 1877:
No. 7,July 1, 1877; No. 8. January /, 1878.
1t 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 wait for payment from
the interest tax as collected. It is true that
the board agreed to elect for four years, but
all parties knew that this provision was SUBJ
jet 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 necee-
sary to make candidates eligible, II may use
The expression, 1t was generally supposed
That there would be number OF applicants
Tor 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. 1t is the
holder OF coupons which are yet unpaid, about
he following amounts:
S77, funds OF 1876. ......... $7s.547 90
January 1878, fund Of 1877 .... 12 aS'o 90
Total. .$2O5. 474 80 |
With the payment Of the January coupon
Il 1878, Its obligations, under the stipulations |
imposed by the board in electing the agent |
eased, except In so far as coupons of former |
ears, covered by the agreement and annexed |
o bonds yet to be funded, after that date ara |
and, therefore, both the agent and
he board fell under the rights and duties Of
ach, solely and exclusively, as gagged by the
aw Under this condition OF things, when
he July coupon Of 1878 was about becoming
ne, and it was apparent that delay would
ccur, the Fiscal Agent agreed to make a fur
1er advance for the purpose Of securing
rompt payment. The attention OF the Gen.
raj Assembly OF 1878 was called to the [
lpulation made by the Board Of Liqui- .
alton In electing the Fiscal Agent t
nd to the advance made by the Fiscal Agent, @
cashing coupons covered by the obligations
ssumed. Act No. % OF the Extra Session
rovided for the reimbursement of the Fiscal Il
gent OF the amount OF his advance. together o
it'll the per cent interest thereon from the v
redemption OF the debt fund.-" fund to be r
OF any surplus as mentioned in the a
nding act and article Of the constitution /,
which referred i could not give my ap- @
oval to this enactment; first, because it a
emed to allow interest to the Fiscal Agent a
,m fixed past date, without reference to j
9 time Of actual payment; and, second. be- I
use It delayed the application Of any sum r
the credit Of the redemption Of the debt q
I'd, until II reached the sum Of the advance. d