The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-14
THE EQUITY SIDE OF THE CASE.

organs insist upon the last jOt and little OF
the bond, and Indignantly resent the bare
suggestion Of any equities on the side OF the
people that can be intruded into the discus
sion. 1t is purely case at law, according to
this class OF public economists and they do
cline to argue 1t except as lawyers In court
Of law. Like so many Shylocks, they "stand
for judgment" and when besought to con-
slider the necessities Of the people and the
fraud with which much Of the debt is tainted,
they answer. like the churlish Jew. that they
have sworn
" 70 have the due and forfeit OF their bond:
| III you deny IL, lot the danger nght .
/ Upon your charter. and your cttys 1reeoom
This we insist, Ia not the proper spirit In
which this question should be met. This Is
not mere matter Of technical law from
which oil equities are excluded. On the
contrary, IL is one peculiarly capable OF
equitable adjustment and II the bondholders
will come forward and meet the representa-
tives OF tho people In q fair and liberal spirit
an arrangement entirely satisfactory to all
parties can be reached. Failing TO do this,
they will simply impose upon the convention
the disagreeable duty of doing, arbitrarily
and In spite OF their camors, what justice to
| the people demands shall be DONE and done
| Immediately and thoroughly. In order to
arrive at an honorable and just settlement OF
the debt question there are many things to
be considered vastly Of more consequence
| than mere bubbles Of law and legal construc-
ton. The discussion of it does not belong to
| lawyers, but to statesmen and public econom-
| lists, and it should be disposed of In a con-
vention of the people and not In the courts
On the part Of the people the first and sole
object 10 be obtained s the reduction of tax
alton to the lowest possible rate upon which
the government can be supported. Taxation
should not greatly exceed the half OF the
present rate in order to allow our people to
recuperate from their present deplorable
poverty and bankruptcy. In order to afford
this relief the entire financial establishment
and poIity Of the State must be revised and
| placed on the most economical basis. 1t will
be impossible to afford the relief that ls abb
soluteIy necessary 30 long as there is a single
tax of five mills imposed to pay interest on a
public debt The debt must be revised and
reduced in amount to an equitable sum and
the interest thereon made to conform to the
market rates OF the world, no matter how
extensively the current expenses OF the State
may be reduced by the abolition OF useless
offices and the reduction of salaries. Seven
and eight mills are now deemed necessary to
defray ordinary expenses. and If this rate can
De reduced one half 1t will be an extraor-
binary economy, and the interest tax will yet
have to be reduced at least in equal proper
ton to afford any substantial relief.
How Is this to be done2 First, we say, by
separating the good and valid from the
fraudulent bonds, and absolutely repudlating
the latter. II this s not found to be feasible,
then the whole debt must be scaled down to
a sum that the State can provide for. The
debt as 1t now exists Is an insufferable bur-
den and fraud, and the yearly interest that
Is exacted ON it Is a fragrant robbery Of the
people. Rated according to the present pur-
chasing capacity Of money, the State did not
realize exceeding fifty cents on the dollar on
the honest portion OF these bonds, while
upon the fraudulent ones 1t realized
nothing. This sum, then, represents
the actual investment of the bond
holders yet they have for years been realizing
z per cent on the nominal face value Of their
bonds, or the equivalent of IA per cent on their
actual Investments. What else Is this but
usury and plumber, and what right have the
holders Of these bonds to complain Of dis
honesty on the part of those who Insist upon
an equitable adjustment
Furthermore. as compared with all the
other values of the country, real estate, wages,
the cost Of living, etc, the money invested In
these bonds had not, at the time this debt was
created. an intrinsic value at all approx
mating the present standard, while the in
terest allowed Is extravagantly In excess Of
the rates that prevail In the money markets
OF the world. The finances Of this country
have been thoroughly readiusted, and it Is
but simple justice that our public credit
should be adapted to the altered condition of
affairs and the prevailing standard OF money
values
But, say the bondholders, II you do this
| you rob us, destroy your public and, neces-
sarily, your private credit and drive away
capital by your exhibition of bad faith. From
every one of these propositions we dissent
1t Is not robbery to give more than was ever
received or to replace q nominal dollar worth
fifty cents with fifty cents at par. After draw
ing IA per cent for years on actual invest
| ments, it Is not unreasonable for the State
creditors to re required to content themselves
with interest on the real value of their bonds.
and that the rate thereof be reduced to honest
rates. Public and private credit can never
suffer from such acts as this on the contrary,
they will both be vastly enhanced. The cred
itor gets all he Is entitled to and is really
benefited, while the debt is placed on basis
which justifes the hope of its eventual pay
ment and the meeting Of the yearly interest
does not mean the enslavement and steady i'm
poverishment of the people. There is nothing
in this proposition TO discourage capital from
finding investment in this State. 1t is the
perpetuation of the enormous and fraudulent
debt, the ruinous taxation that is imposed to
carry it, and the frequent defalcations of in
terest, resulting from its excessive rate and
the inability Of the people to meet it. that de
preciates our public credit and prostrates
private credit and all industries by the fear
full exactions placed upon them. Remove