St. Landry democrat., 1879-06-14
The State Credit.
A VOICE FROM NORTHWESTERN LOUIS
lana, WITH NO UNCERTAIN SOUND.

A VOICE FROM NORTHWESTERN LOUIS
lana, WITH NO UNCERTAIN SOUND.
The Shreveport Times of June 9Th
contains an article on reputation, Of
which the following are the salient
points:
Commencing in 1887, the committee
with facile pen strikes ont millions upGn
millions OF dollars. The committee is
impartial and nonpaItiSan. Whether
the bonds were issued under Il Dcmocra-
tic, Wing or Republican administration,
makes no difference. The consideration
received by the State is wholly disrc-
garded The question whether or not
the bonds were fraudulcntlv issued is
not considered. The committee simply
assert that the bonds were not issued in
conformity TO law, and therefore recon-
mend that they be declared null and
void.
In 1887 the State issued 100000 Of
bonds to the New Orleans and Nash
vile railroad. Not Il mile of road was
built; the State received no consIdcra-
ton; yet, as all the forms OF law were
observed, the bonds are declared to be
valid and binding On the State. On
the other hand the committee reports
as null and void $1,2o4, IA on consoll-
dated bonds, for which he State re-
ceiyed in cash the sum Of SG,993,501 81.
We doubt if this report will meet
with the approval of the conyent1on;
There are legal, moral, political and
practical reasons why no part OF the
honest public debt OF the State should
be rcpudiated. The constitution Of the
United States forbids q State from
passing any law impairing the obllga-
ton of q contract. Should the State
repeal the amendments of 1874, and the
legislation pursuant thereto, the bond
holders would apply to the courts OF
the United States for redress, and such
courts would, in all probability, order
the collection OF the tax levied in per-
petuty by the amendments of 1871.
Moreover, the repudiating OF an i'll
lebteiness OF &S,O0O,OOO might induce
the other States OF the Union to consent
to an amendment of the constitution of
the United States, providing that q
State might be sued in the United States
court in certain cases where the rights
guaranteed by the constitution Of the
United States are denied to creditors.
Morally, the act OF lrpudiAtirg legal
obligations is odlous to the civilized
world. The law colnpcls the individual
to pay his legal debts. Nations go to
war to enforce the obligations OF treaties.
\ State is sovereign i'll certain sense
and cannot be sued without her consent !;
hence her reputatiOn, credit and fair
name imperatiyely demand that she of
her own volition should keep her en-
gagemcnts and discharge her debts.
The fact that there is 10 power Ill law
to compel a State to discharge her obii-
CATIONS to individuals lmperatlvely de-
mands that the sovereign do Justice to
all. Having induced the creditors of
the State to remit 40 per cent OF their
claims, and having entered intoa solemn
compact to pay the principal and inter-
est of the consolidated bonds, can the
State honorably repudiate her obliga
ti0nso Such d step would be Il lasting
stain upon the fair name OF Louisiana.
Fair name, credit, influence, respect,
confidence, all gone. What a fearful
price to pay for doubtful exemption
from the pursuit Of creditors?
Again, what will become of the Dem
ocratic party in the State of Louisiana
if the convention should fix upon 1t the
stigma of reputation 1t would Ger
tainly lose the confidence and support
OF large class of business men who
have invested in consolS and who would
be financially ruined by reputation.
Besides these, is it not reasonable to
suppose that thousands of aW-abiding
men would desert party which displays
such disregard of legal obligations and
! threatens to sink the State in the depths
of financial ruin Such Il step might not
only ruin the Democratic party of the
State, but it would cast odium on the
Democracy of the nation, and would
go far to shake the confidence of the
people Of the Union in the honesty OF
| the great party Of Jefferson and of
! jackson. 1t would make us many bit
ter enemies at home and abroad it
would destroy the influence of our rep
resontatives in the halls of congress.
! Louisiana would, in some sort, become
the Ishmael of States; isolated by this
act, and lacking the sympathy and as
sistance of her sisters, her appeals for
assistance would be disregarded. Tn
aided and alone, she would be left to
work out her destiny to rebuild her
shattered leyees; to repair her waste
| places, and to leave to future genera
| tions the hope of a prosperity that she
| has frightened from our borders.
Our great need is capital and immi-
| grafton to develope our resources. We
! need railroads, levees and river improve
ments; manufactures and intelligent
! labor. Capital demands security. The
| hope of large profits will not per Sc at
/ tract wealth to our State for investment.
| Something more is needed than low taxa
| ton. Capital must be assured that it
will be protected. 1t can present but
little defense against the sovereign
power Of the State, when that power is
eXerted to destroy at one full sweep
| $8,00O,000. What guarantee can we
give against the future? Let us ac
knowledge our debts, even it we cannot
pay them. Let us appeal to our cred-
| tors to make concessions that will enable
US to meet our obligations. A redIc-
tien of interest Tor the present, and
until prosperity returns to our State, is
all we can ask of creditors whose claims
have been decided to be just and valid
obligations Of the State,
Louisiana is rich beyond any of her
sisters in soil and genial climate, and
when her lands are brought into culti-
vation and manufactures introduced by
means of capital seeking investment in
! her borders, we confidently predict that
she will enter upon q career OF pros
perity unprecedented in her history,
and this with Der financial integrity
un4uestioned, her fair fame ultarnishel
by repudiation.
The production of gold and silver will
not this year, in the opinion of the Di-
rector of the Mint, exceed &Go,600,O90,
| S0S fil0 flIl1 II loc eff IyAor Tia