The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-22
THE NEW ORLEANS DEMOURAT SATURDAY, MARCH o. 1879.

| very sad one 1t shows that. only by the most
careful painstakiDg and economical manage
mept can the unfortunate depositors hope to
receive back more than 81 per cent more OF
their bard-earned money than the Is per cent
| that has already been paid them. God knows
we most earnestly hope that the property will
he 30 managed. 1t ID q hard case, and many
moor hearts that throbbed with hope while
busy fingers and weary muscles were piled to
earn this money, OF which only sixty or
seventy per cent is to be paid back will
| read that report with fearful eyes or with
darkened brows. But let the responsibility
| rest where 1t belongs. Against the damnable
policy of the money power. which has
ruled Congress and this State for 80 many
years. and caused this terrible depreciation OF
real estate In this city, the DEMOCRAT has
fought with such ability, energy and persist
ency as It could command. But mercilessly.
relentlessly, that policy has been pursued, and
the fearful consequences are upon these poor
people, and thousands OF others who are
without work and money. But this branch
OF the subject belongs TO the discussion OF the
general causes to which we have referred.
Secondly: Did the DEMOCRAT cause the su5-
pension OF the Southern Bank2 The question
Ia answered by facts well known In this city.
The affairs OF this bank have not yet been
reported upon, and we cannot form an es-
innate of its losses by tho depreciation
OF real estate. But that It's failure was
largely due to the fierce war the city has
waged UPON the city consolidated bonds,
large amounts Of which the bank held, will
hn nd hn
free banking law OF this State, the wisest and
safest, with the exception Of that Of New York,
in the Union, the consolidated bonds Of the
city, with State and United States bonds and
specie, constituted the capital OF our free
banks The Southern Bank held large
amount OF the city's consolidated bonds as
part of Its capital under this law. IT there
arc sacred public debts, these bonds constitute
one. They were created by O city administra-
ton OF our own people, and one or two gen
erations OF our people recognized them fully
and freely; they constituted banking capital
under one OF the wisest laws Of our own Leg
stature, and capitalists at home and abroad
invested in them. The law that created them
should have been respected by our own pub
lie officials, for, In organizing the debt 1t
provided against the creation OF future debts
by corrupt and profllgate administrations. by
requiring vote OF the people of the city to
authorize new debt. But the era OF carpet
baggers came and the ancient laws OF the
city and the commonwealth were no
longer sacred. In defiance OF the laws
Of the land millions of debt were created
by the rulers OF the city until, crushed
under its weight, taxes enough could not
be wruDg out of the people to pay the In
terest. And then, instead OF resisting In the
courts this mass Of cruel and ruinous fraudu-
lent debt. our own representatives devised
for the purpose Of saving the public credit at
the expense OF the victimized taxpayers and
workingmen, thepremium bond scheme The
Southern Bank, confidlng In the law and
Ia the sacredness Of the public faith
refused TO confound Its honest claims
with this mass Of fra1d, and the city opened
fierce war upon the consolidated bonds for
the purpose OF forcing their holders to con-
vert them into premiums. We do not doubt
the motives OF the gentlemen who did this
but II there has ever been a scheme OF repudi-
alton set on foot In this State 1t was the effort
Of tbs city government to annul the act OF
one Of the few debts against this city which
has ever been authorized or formally recog-
nized by this people. The Southern Bank
held large amounts Of these bonds, and against
that bank the wsr OF the city was directed.
The late city government ruined the Southern
Bank. The DEMOCRAT has consistently sus-
tanned the consolidated bonds, and 80 far as
its utterances have gone, IL they have affected
the bank In any way, they have aided and
sustained 1t. Upon the other hand, the
Times has left no species OF argument nor
abuse untried to destroy the value OF the
bonds OF this bank, or to asperse the motives
OF other holders OF consolidated bonds.
Thirdly: When O report Is made on the
Mechanics and Traders Bank, 1t will be time
enough to discuss the immediate cause Of It's
failure.
Extravagant State and city systems of gov
eminent, by which the substance OF the tax
payers is consumed by the tax-eaters; the re-
cognition OF millions OF State and city fraud
ulent Indebtedness and the effort to base sound
business operations on the cumbersome, I'M
wieldy, oppressive and rotten mass, are at the
bottom of all our troubles. 1t will be the
duty of the convention to correct these evils,
and 1t Is the duty Of the people, from now
until the convention meets, to clamor for
radical measures of relief.
There is no doubt that the immediate crisis
is over. The weaker banks went under, and
the others are staunch and strong. But unless
the evils and burthens which weigh down the
trade and industry OF Louisiana
are corrected and lightened by far-reaching
reforms 1t will not be twelve months be-
fore our troubles will reappear In an aggra-
rated Ghana