The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-06-10
THE STATE DEBT.
The Country Press on the Report Of the
Committee on the State Debt.

from The Public. . New York Journal Of
Finance. Commercial! Interests and Political
Science. June 8. 1871
The committee on the State Debt have sub
mitted to the Louisiana Constitutional Con-
] leutipn It's report. 1t alleges that the cOnsti-
AHtutiOnal amendment Of 1874 was never pro-
nulgated, according to the evidence In the
Seuetary Of States office, and advises pay
nor sae Is the debt Afer aludins e the
poparty-stricken condition Of LOUISIANA, 1t
acloses with the hope that the settlement of the
debt question will place Louisiana In the fore
most rank Of States. "A minority report was
I pnsented BY Mr.. Semmes II dissents from
Ast of the majority and characterizes the
views Of the latter as astounding and I'm
hard of. After discussion Of the legal ques-
tiUDs involved In the proposed reputation OF
she majority, 1t declares that all moral and
@bgal obligations demand payment OF the
dsbt It shows the amount Of money that
The State has received from the sale Of her
bonds and notes from the action of the
Nichols Legislature and decisions from the
EHpreme Court OF the State to prove that the
finding act Of 1874 and the constitutional
amendment OF the same year are binding
non the State. An ordinance appended to
10 minority report advises that committee
Il with representatives OF the bondholders,
sth view to an honorable adjustment
sn the debt question. Both reports were or
64ed printed. The State thus proposes
repndiate, In round numbers, twO-thirds
ais debt. It will be painfully remembered
ut this debt Was the result of q compromise
h which the original debt was scaled to q
we extent on the understanding that the
Institutional amendment secured the amount
Eeed upon. A part of section Of the act OF
M says: The issue OF consolidated bonds
Nthorized by the General Assembly Of the
- a. IL
ndeby declared to create valid contract be-
wen the State and each and every holder OF
VA bonds which the State shall by no means
M u no wise impair" 1t Is q question II
NRtate cannot be made to make this prom
9kpd even II, as Is claimed, there was an
anality about the act: 10 equity, Y not
l9aK, Louisiana owes this money, and bond
aaets wish to know what security for ~
M performance can State offer which
n& shamelessly violates Its plighted Obliga-
80 That there are q few honest men LETT
nne State Is shown by the telegram from
1 VI. Orleans. which states that the Council
aaal city have unanimously passed Pro
against the adoption by the Constitu-
1asl Convention OF the majority report. Inc
aenel considers 1t destructive to the PUBLIC
asat and well it may. Such action would
II suicide Of the most contemplate k1nd.
awhile the bondholders are not Idle:
1ang German bankers here have cabled
1Oreign holders, asking for powers OF at
aey, and 1t is proposed to shortly hold In
Isl city public meeting for the purpose OF
ag such action. as the needs OF the case
Philadelphia TImes.l
mas been evident ever since 1t met that
~ Proportion OF the Constitutional Con-
st1on now in session at New Orleans was
~ on wriggling out Of as much OF the
Slae Indebtedness as possible. and the
sprity Of the committee to which the sub
~ vas referred has now made report 10
sE Of repudiating all but about $1,000 ooo
~ pfetaxt on which this escape from pay
W. lull debt is based is that the Leelsla-
80 1874, which passed the funding ACT,
IN ao6 chosen BY the people at Tree cleo
~ ~ ~. % account OF the military interference,
nat Its legislation In regard to the depI
- 0aeequently invalid. The minority OF the
ss. alIlee take the honest and reasonable
ssend that, as the legality Of the funding
800 been recognized BY all the State gov
.lsnts since, it is too late now TO dispute
nm ~ recommend paying the whole debt,
~ ~ reduction Ut the interest TO or per
1 I'm IAmite Independent
Sss Re majority Of the Convention Committee
49, ~ State Debt has reported IN favor OF
spudiation OF about twO-thirds Of the
IN aebs, without regard to the equities, the
I'M as!or wrongs, or the merits OF the case:
49, Our protest to that OF Gne minority y.
sNmittee, the New Orleans Chamber OF
s.aefce, the New Orleans DEMOCRAT, ana
~ fty Of our country exchanges, who are
Protesting against such measure.
gHll an the idea of refusing to pay an hon
just because you have 1t In your
while we think the man who would
and willingly pay an un-
~ Iaudulent demand Is fool. And 30
e the State, make the best arrange
!Vu can with your creditors. to relieve
yers, but do not openly repudiate q
elsns aal You honestly owe. Oh, that the
slon would hearken to common sense.
Mest Baton Rouge Sugar Planter.l
the canvass for delegates TO 0onsti-