The morning star and Catholic messenger., 1879-02-02

cent; and the tendency of the money market Is
to put it down to o level with the rates OF the
Banks of Engiand and France. Any man who
takes more, on o safe Investment, wonld, in
foro oonscientig. be guilty of usury. 1t follows
that, according to conscience, the present bond
holders should be content to receive the
amount of their actual investment, with inter
est at four per cent. 1t is with q bad grace
that they cry "repudiation," and AAunt their
bonds in the face of the off oials who represent
that souless entity, the Corporation of New Or
leans.
Let us assume that this corporation 10
bound, at la,o, but must we apply to its aots
the maxim that the King can do no wrong :
Must we admit that the municipal government
80 far as authorized by the State. of waich it
Is fgment, does no wrong when it imposes
exorbitant and oppressive taxes; and that!the
psople are justly bound to pay any enormous
or corrupt debt the municipal or State Govern
ment may contract Must we admit thepower
of virtual oonfsoation, through the medium Of
taxationf
Surely, tax which is to be levied during
fifty years, and is equal to the income derived
by the owner from his property, is, in effect,
confscation. II renders the property worth
less. Property is never worth more than the
amount of capital which would bring interest
equal to the net proceeds of rent. If q thousand
dollars brings eighty dollars interest, then
house yielding ret rent of eighty dollars 10
not worth more than thousand dollars. II
then virtual coniscation lis wrong, self
evident violation by the corporation and State
Of their obligations, to the people it is right
ter how legal the injary may be, theoretically.
Practically the Government can do wrong. 1t
has done 40; and by all means, short Of revolu-
tion and violence, it's tyranny and rspine
should be thwarted.
There are really three parties in presence
Q) the corporation, (2) the bondholders, and
(3) the individual citizens. The corporation,
with the connivsnoe of the bondholders, has
violated it's obligation to the latter. 1t has
wasted their money, incurred an enormous debt
without consideration and contrary to previ-
ous prohibtory laws; and created a yearly
deficiency by appropriations in excess Of rev.
enue. All this was notorious-known by all
the people, and particularly by the so-oalled
original creditors to whom the bonds were
issued. All subsequent holders also knew
it.
What moral reason is there then to stay the
taxpayer from demanding the scaling, if not
the absolute reputation, of such q debt in
Cured by notoriously unfaithful agentf
Even if the taxpayers are defenoeless at law,
they certainly have moral rights to which they
may properly and honorabiy appeal.
1t is conceded that corporations are indivi-
duals-that each is legally q person; aud under
+ fAan L. T. =.
as any other person. 1t may become insolvent
as other persons do. For example the City of
New Orleans, in her corporate capacity, is in
solvent. She cannot pay necessary current
expenses-cannot pay her Off oers aud servants
their salaries-cannot pay her sohoolmasters,
her policemen, her gas biIl-has no money to
repair or pave the streets, landings, wharvas
aud levees which are 80 absolutely necessary
to the existence of her commerce. A large
oating debt has arisen and is clamoring
against her. The sum which will be required
next year to comply with the Premium Bond
Plan is $500, in Eve years it will be np,cards
OF $500 900; in fifteen upwards 81 O00, 900, and
80 on crescendo to 81 500 00O
Tne resources OF her citiz ,ns are not mex
ha unstable. Tde limit of them has been reach
ed. Clearly the city is insolvent. If she can
not take the benefit of the insolvent law in
court. she is refused right which every other
person enjoys. Iueq q1ality before the law is o
greVio1s wrong. even unconstitutional under
an express clause Is it not therefore honor
able on her part, as it would bs on the part Of
any other debtor, to call upon her creditors to
take ell she is able to pay, and to grant her q
discharge for what she cannot aud ought not
to psyf Such is the question now before the
Mayor and Administrators. Will they as
heretofore take the side of bondholders, or re-
pent and stand by their msndstor, the people
who elected themR
1t is urged that hereafter the oity may be
able to pay the whole debt, but this is mere
speculation fraught with many years of in
ftcted suffering or attempts at extortionate
taxation. No doubt, su insolvent may perhaps
somehow come to better fortune, but a mere
hope based on no present fact, and only on q
dream of future good turn of the wheel of for
tune, is not reason for not acting on the exist