The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-12

taau,no the bonds for the stock was to aid the aa
company ia obtaining Innas 10 pull nMiu t hs
Tie stek h Been pe needed s the stock
uO l.n, no,,a been sold. But it was not avail
M WA and II is difficult to believe that the
hD,,da would have been any more 80 II tnelr
.p onun had been limited to the revenues
pa ag r,rnneeds of the stock. The proposal OF
smeh n scheme for raising money would nog
have indicated much wisdom on the part OF
the Legislature; to have assented 10 10 would
have indicated less On the part 81 the Don ad
been required to look for payment q me
bonds only to the revenues and proceeds oi
the stock, it comes with bad grace u. from the
city. not to cay evinces an tneenslpllity 70 its
obligations, to allege exemption ,fp H. l stna
and diverted the proceeds to other uses
Gentlemen OF the Convention, II can induce
or persuade you to devise some means that
viii give rest to the State, you will then bless
me where you now bsck oond fse nsnua Mion
that have 50 often heard that | am 9
bondholder. / have not owned q State
or city bond for the last three
years. utterly repe.lh ra, 1ne ~ a tsnt
If am not bondholder | am employed by
the bondholders as their advocate, deny
the charge. / have no client who mas en-
ployed me- or retained me, or desired me 10
sneak In the interest OF the bondholder, nor
has q bondholder paid me any fee as bond
holder for that purpose. ! say this now as
this liz the first public opportunity have had
to deny these accusations, made Tor the pur-
pose of impairing or weakening whatever ~
Huence / may exert over your MINDS.
adopted Of opposing the majority report
takes away from the legal profession any op-
portunity Or chance Of their being employed;
In fact, am speaking against the profession g.
to which belong. Now, then, as 10 tnls PIC
t,lre which have drawn. Don't you suppose
that any one who has any interest In Lou
igiana consols has studied these sta
tistics? Don't YOU suppose, that he
knows that what / have stated is 9 fact!
Let us, therefore, look at this subject with
the ewes OF one who Is about to make an
Investment In Louisiana consols, not as one
who has bought, but us one who is about TO
do 90. Suppose o citizen OF the state OF New
York or an Englishman should have spare
money which be desired to invest before this
Convention assembled, would he not look to
Gee the State that offered the best securitiesl
Would he not examine to see before In
vesting whether State is able to pay
ts debit You mus, Therefore nek y lo9 4hem O.
Ills His examination would not be for the
purpose of ascertainiDg which State pays the
highest rate OF interest, but which State
offers the best security for an Investment;
Surprising this man having invested ne would
next CONSIDER the SlIuatiou ~ WHICH 1lo oeato
stands In regards to its debt. Suppose, you
were to adopt D plan by which the State
would pay no interest for one year and then
for series Of years to gradually increase
the rate Of interest, as was .,a done
Ia the State OF Aabama tthehr cibyy
placed upon it's legs again. Reduce your rate
OF interest-very low for five years, as was
done In Alabama. ! would then increase
the interest for the next i've. years as Ala
vance slowly, until In ten years you can
fix rate OF interest which would be perma.
nent. Suppose now this man having satisfied
himself as to the ability OF the State to pay it's
debt, the next question for him to inquire into
would be whether or not the bonds In which
he proposes TO invest are the legitimate bonds
of the State; he goes to the statutes Of the
State, he finds act No 8, 1874, he finds con-
stitutional amendment OF the same session
submitted to the people at an election held In
the nature OF a law he looks to the official or
gan and finds the declaration that the amend
ment was carried at that election.
He finds the result Of that election deposited
Id the office OF the Secretary Of State, he finds
d Funding Board established and In operation
under that act he finds that the Governor
recognizes the constitutional amendment, he
finds that the Judiciary of the State recog-
nizes 1t, he finds that no one has raised any
hue or cry about 1t, that not one has instituted
any proceedings TO arrest tts execution; he
finds that before that law was passed, q com
mittee OF the most respectable citizens OF this
city was appointed for the purpose OF investi-
eating the State debt; ne finds that they re-
ported 1t amounted to $23,OO0,000; he finds,
and call particular attention OF the minds OF
the members OF the Convention to the fact,
because 1t has SO often been stated that the
whole world was warned against taking these
bonds consequently there could be no such
thing as an innocent purchaser; thatthe peo-
PIE Of New Orleans IN mass ass meet .sat
the payment OF those obligations incurred by
a recent Legislature. AS 1t had exceeded its
authority, they considered, therefore, all such
loans as null and void and Of no effect. Now,
happen to have the original proclamation
made upon that subject, signed by nearly all
the prominent merchants and bankers and
men OF capital in this city. 1t Is dated
NEW ORLEANS. March 49, 1871.
The uadersgned owners and tax
the State Legislature has. at Its late session. ex
ceeded It's power. In the loans. Endorsements.
and other obligations and grants authorized on
bg tse Of e h
stituton, to $25 600, 900 talready incurred, as
shown BY the annexed official statement Of the
ine bankers brokers' san and dealers In securities
in this country and In Europe. that they con-
slider all such loans. Endorsements and pledges
the authorities in resisting their issue. and If
issued. will. by every legal means, endeavor to
prevent the payment of any interest or prin-
cipal. or Of any tax levied for that purpose.
They only recognize the State debt proper,
amounting to 2502l. 734 40. rs shown In the ac-
comDanying exhibit Of the Auditor, and they
class the 'accruing debt with the illegal legis-
lation previously referred to: 3
STATE DEBT. COMPUTED TO DECEMBER
81, 1870.
EXISTING DEBT (REcoGNIZED).
Total amount OF State Bonds. as
per Annual Report of 1870. -. So, $50 .233 90
Outstandi, < AUDITORS. warrants.
Issued between April and De-
cember 81, 1870. ...... 81 300.311 81 ":.."M.m #
certificates
OF Indebtedness. is
sued between April
and December 81, 1870 293. e55 CO
e " S---eS- 80 ' - 1.59a.ss7 A