The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-02-23
THE CONVENTION AND THE PUBLIC
DEHr.
To the Editor OF the Democrat.

To the Editor OF the Democrat.
Upon the recognition aud es Adjustment OF
the Nichols government the impression pre-
vailed among Interested parties that the fund
ing act Of 1874 would be accepted as a fnality
as mode of settling the public debt. and. rs n
consequence, that tho State eonsos would never
be- disturbed Hence the rapid rise In these
securities In the spring OF 1877 from SO to 81 In
the short space of two or three weeks on Caron-
delet street. Dutthe people Of Louisiana never
said It should be flnaIity; but. on the con
trary. some began to discuss the situation
among themselves, and to manifest IN unwi-
lingnees to bear the heavy burden imposed by
carpet bag and bayonet rule. II Is true that
those who eoneoeted the funding scheme
endeavored TO fo1tify their rascaltties by sol
emn formaitieF. such as paper amendments to
the constitution. calling the new bond a
contract between the State and the holder of the
bond. and pledglng certain annual tax to pa7
interest and to provide sinking fund for Anal
redemption Of the bonds. But every man OF
81 nse In Louisiana and out o. It knows that
these amendments were as great n fraud rs the
funding act itself These so called amendments
were got up by Kellogg and his ring. and have
no higher sanction than the ludorsement OF
con vsDient and subssrvient Returning 30 I'd.
50 that. when the whole Eituation was taken In.
II was soon discovered that the market was
altogether an artificial ono and no value
or merit attached to the new oonsols
other than for purposes of spec
nlatlon Turing kelI9aF1s regime tho ling
lHting aud div rtiug other than interest funds,
and by the favor Of the Fiscal Agent. who was
always largely Involved aud Interested IN these
bends. But with u change Of Illustration
the bubble burst. II was soon found that the
large amount Of interest never had been and
never could be- raised from the people In their
began to tumble. and havs been declining ever
since. notwithstanding the strong combinations
and efforts to hold up he market It may now
he said TINT confid,a'e is entirely gone. and
State consols have now no merit except NJ the
| football Of speculate on Carondelet and Wall
streets.
Public opinion In Louisiana has now become
crystalized on the subject. and may be thus
form nlated:
/. The State debt 10 IT, present shape shall no
longer bs provided for. either interest or prin-
cipal.
b This Ia not Reputation because the people
do not believe they honestly owe the debt
3. There are no innocent third parties or
holders. because the world had abundant notice
| of the character of the debt which the infamous
| carpet bag governments Were fastening upon
| tho people Of the South
| 1, There is no contract between the State and
tho bnndholders which is binding In law or
| conscience
| g. Tho convention should provide q special
| court or commission, ~ was done In South
Carolina. to inquire into the public debt. over
| hauling and sitting 1t.
| 0. The holder Of q bond should be required
to show to tbs satisfaction OF this court or com
| mission. that the State has received n con
sideration OF something like an equivalent. In
which case he should receive new bond for
| the face of tho old one.
| r. If this cannot be done. then the State. In n
spirit Of iiberaltV, might give a new bond In
lieu OF the old Que. ut not more than Is cents on
the dollar aud with this the bopdholder shouid
be satisfied The stuff which has been funded
never cost the owner more than Is or 20 CONS on
| the dollar, az q general rule.
8. The convention SHOULD pass an ordinance
| Ia the way Of general legislation. which 1t may
| rightfully do authorizing the city OF Jew Or
| leans to compromise wi til her bQndholders and
| other creditors through board of liquidation
in a similar way. A new bond at the market
tlue Of the premiums and other forms of
| Gouting Ddebtednt So would be n just arrange
ment. The present holders would loee moth
| Ing. The money has already been lost by other
people. They would, Ia tact. get Q better bond
o. The new bonds, both city and State. should
bear an interest not exceeding four per cent
| / believe the foregoing propositions fairly en-.
| body the opinions and wishes of the masses OF
the people, and is the only mode of giving any
substantial relief III the coming convention
| fails to give voice and direction to public sentI.
ment on this debt question. 1t might as well not
meet. II the people are wary and vlgilant they
will get this relief. otherwise they will continue
to be the slaves Of the exacting bondholders.,
EQUITY.