The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-07-01
CURRENCY BONDS.


considered BY the Convention Mr.. String
fellow, of Red River, offered an amendment
providing that the interest on the debt, as
now funded, be fixed at per cent for five, 3
per cent for ten years and per cent there
| after. An amendment was also offered that,
at the option OF the bondholders, the bonds be
scaled twenty-five per cent and interest al
lowed ct the rate Of four per centper annum.
10 this Mr.. Lyons OF East Feliciana, offered
| the following amendment:
provided that the holder OF said bonds may,
on the surrender thereof, receive currency
bonds Ct re ,s,t q ~ s1o and W.
will be received In payn ent OF any taxes due to
any fund which may BE- set apart for the pay
ment Of the interest on the public debt
These propositions In our opinion, come
very near the adjustment which should be
made, and which will give the people relief
and all parties satisfaction. But they ought
to be modified, both In the interest Of the
people and In justice to the holders of the
bonds.
In another article we have expressed the
objections which we think lie to the per
cent and to the rs per cent scaling. In our
opinion the per cent for five years clause
should be stricken out Of Mr.. Stringfellow's
amendment
We would then consummate settlement Ia
which the body OF the debt would be reeog-
nized, bearing 8 per cent interest for ten years
and per cent thereafter, permitting holders
Of the bonds at their pleasure to convert them
into currency bonds.
We have already, In an extended series OF
articles. shown the advantages the people
who are to pay this debt would derive from
the conversion Of 1t into currency bonds
Those benefits may be- thus briefly enumera-
ted.
/. 1t will place at the disposal Of our banks
non taxable currency which they can lend
to our real estate owners in country or city
In the same manner that the free banks be-
fore the war lent their notes.
q 1t will counteract ii this section Of the
Union, the money stringency- scarcity of cur
rency- poverty and depreciation OF property
caused by the resumption policy OF the Fed
eral government.
g. 1t will, consequently, make New Orleans
what she was before the war, under the free
banking systematic money centre OF the
Southwest and enable her to reap the bene-
fits Of her railroad extensions and OF her vast
river avenues, and once more secure to her
the trade Of all the surrounding States.
4. Currency, safe and convenient, made
more abundant, there will naturally be re-
vival of trade and building, extension OF
planting and other industries, and the idle
will obtain work. The currency will pass
out amongst the people, and every class will
feel Its Influences. Even the little interest
coupons on the bonds may be clipped and
will pass current at the groceries for such
little purchases as the humble wants Of the
poor may require.
But there is still another advantage the cur
rency bonds possess over the large bonds.
They will be held by the people OF Louisiana
and neighboring States whose people trade
at New Orleans and hence the many dollars
Of interest which under any settlement OF the
debt must be paid, instead of being sent to
New York, London and Amsterdam will be
paid out by the State to Its own people and
will be kept In our midst.
These advantages which the people will de-
rive from putting the debt In this shape, we
think will readily be perceived by any and
all who will look into 1t, and they are 50 great
that we believe they will fully justify
the Convention In providing that those cred
itors who will convert their bonds into cur
rency bonds shall receive four per cent in
terest. But II the Convention differs with us
on this point, certainly they will provide for
the voluntary conversion Of bonds into cur
rency without any discrimination against the
latter.