The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-04-17
CURRENCY BONDS.

CURRENCY BONDS.
That an adjustment Of the State debt, IN the
interest OF the taxpayers, must be made,
even the bondholders In deprecatOry
manner admit But even the friends Of the
people have not gone far enough in the line
of relief. The bondholders concede that per
cent interest Is excessive and they express the
opinion that 5per cent or a A. per cent bond
would be better investment and property
than the present consol, representing bonds
good and bad, and bearing usurious interest.
| The taxpayers go further and claim that Inc
| interest should not only be reduced but that
| the debt should be investigated and the
| fraudulent bonds repudated, or, that
being found impracticable, the debt should be
scaled We concur in the views Of the tax
payers, and 90 further, and in the interest
both Of the holders of our securities and Of
the people who have the debt to pay.
Indeed, whatever conflict may arise be
tween the people and the bondholders as to
| the adjustment of the body Of the debt and
the interest thereon, there is one proposition
on which, when the adjustment Is made, they
ought all TO agree. We Suggest that when the
question as to what we owe or can pay, and
the interest we should allow, Is definitely
settled. new series Of bonds shall be issued
which the people can use as currency. In
other words, let the debt OF the State
be converted into bonds OF five, ten, twenty,
one hundred and one Thousand dollar bonds.
Georgia has recently issued four millions Of
such bonds, and they have proved Ct such
49, hoX hoo
popular with even those who have the taxes
to pay, and they have been taken up by the
people Of the State.
The conversion Of the real debt into such
bonds will have the happiest effect. 1t
will afford us substantially all the benefits Of
our old free banking system, under which
New Orleans was the great money centre OF
the Southwest; 1t will remedy the evils OF
depression and bankruptcy caused by the un-
wise policy OF resumption, and pace at the
disposal OF our bankers and merchants cur
rency which, as In the more prosperous days
Of the country, they can lend our planters
and real estate owners, and thus rehabili-
tate the finest regions In the world, now Ian
gushing for the need Of capital And fur
Their: such series Of currency bonds will
completely emancipate New Orleans and all
its tributary country from the financial vas
salage to which the national banking system
has bound every Southern and Western COM
munity to New York.
Under the national banking law the ma
tional banks are prohibited from lending
money on real estate. The law was framed
In the interest OF the money power and with
strange unwisdom, for the purpose Of de-
preciating and crushing the real conservative
interest OF all sound government-ther real es-
tate interest. These unwise provisions made,
the money power went further, and to con-
centrate all power in the national banks
and render every interest In America tribu-
tary to them, imposed 10 per cent tax upon
State banks-the banks Of the people-and left
the real estate interest OF the country without
any Of those sources OF enterprise or recu-
peration dependent upon capital. 1t stripped
the brain and muscle Of the country OF all aid
or encouragement, and branded 1t with the
mark Of vassalage to the aristocracy Of capt.
tai.
The great question Of the day with these
rich but depressed agricultural regions upon
which New Orleans relies for her prosperity
Is, emancipation from this tyranny. Inc re-
peal Of the 10 per cent tax on State bank circu-
lation would effect that emancipation; but
that, IL not inpracticable, IL far distant. But
the conversion OF our bonded debt into cur
rency bonds is practicable; it is In our own
power; it is legitimate; it will enhance the
value Of the bonds; it will give US several
millions of additional currency, guaranteed
not by banks, but by the faith Of
the State, and hence worth their face
value; 1t will make New Orleans
again the great money and commercial centre
Of the Southwest, and it WILL II there be rea
son and moderation On both sides, bring the
people and the bondholders on common
plane and effect satisfactory adjustment of
the debt
We throw out this suggestion somewhat
crudely to the convention, but with the firm
conviction that settlement OF the debt prob
lem can be effected on some basis Of this sort.