The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-07-21
WHAT no DO WITH THE DEBT.

THE PRESERVATION OF TgIE. PURhF6 FAITH.
WHAT 10 DO WITH THE DEBT.
The Constitutional Convention Ia rapidly
approaching the conclusion of itsaabors, and
the most important and difficult question It
has had to deal with the adjustment Of the
State debt, will perhaps be settled this morn
ing
We venture, however, to suggest to the
Convention that the Endorsement by the peo-
pie Of their action on this question 10 by no
means assured, and that IL their work ts not
inspired by wisdom 1t will be- rejected and
they themselves condemned by their con-
Btittlences. IL the bonds be heavily scaled,
or IL the interest on them be made so low
that they will be worth less than half their
face value, there is a noisy and clamorous
party In the State who will shout with
delight. But some months must Intervene
between the adjournment OF tho Convention
and the rejection or ratification OF the Con-
stitution. In that time II the policy OF
repudiating the debt or OF mutilating
shall be adopted 1t will be discussed
III view Of some Of the practical effects
OF such action: many who are now for
Reputation will look at the matter In new
light, and the chatter OF Applause will Returned
Into tempest Of indignation.
we do not believe that any considerable
body Of the people of Louisiana desire repu-
.diation for the sake OF Reputation. The great
majority of those who desire to have the debt
scaled desire 1t as a measure OF relief. 1t Is
the duty, therefore,, Of the Convention, In set
thing the debt, to accord full justice to the
public creditors and all the relief possible to
the people. Neither Reputation nor reck-
less sealing Of the debt will do this. Either
measure will plunge the State into a new and
deeper sea Of agitation and distraction, and
retard for years to come the growth OF Lou
isiana In prosperity. But there Is plan Of
settlement which Will satisfythe bondholders,
relieve the taxpayers. and place the State and
city III position to derive very great and
substantial benefits from the debt. We refer
to the proposition proposed and so often
urged by this paper and approved by many
members OF the Convention conversion
OF the consos, at the option OF the bond
holders, into currency bonds, bearing fair
rate. OF interest. '.s~@--ss
The greatest power In any State, city or
nation Is money. In matters Of commerce,
agriculture, war and civil business, money is
the most potent agent Of government. The ten
per cent tax on State bank circulation threw
power into the hands Of the national banks
which enabled them to bind every other sec
ton Of the country In commercial vassalage to
the East. The success Of the greenback policy
will strengthen the hands Of the eentralizatlon-
ists and when the Federal government shall
become one great national bank to supply the
whole country with its currency, the indivtd-
uality OF the States will be virtually eS-
tinct. Relegate the State banks, the right
under State laws to issue notes, and the po-
litical influence Of the States will be Increased
and the trade and Industries Of many OF them
Refrigerated.
The Constitutional Convention has now the
opportunity OF giving Louisiana, despite
the ten per cent tax on State bank circulation,
all the benefits of such circulation by con-
verting her debt into currency bonds bearing
a rate OF interest which will float them The
notes Of the free banks of this State were
based on State and United States bonds city
consolidated bonds and specie. The banks
by sustaining the planters OF this and adion-
Ing States upheld the commercial supremacy
OF New Orleans over the Southwest and
made her one OF the most important CONNER
eial cities IN the Union. Why then. since the
debt OF the State and city must be adjusted la
one shape or another, should not the ConveIl-
taon adjust the State debt and empower the
city to adjust her debt on the currency bond
system. and thus render both debts a great
benefit to the people.
The bond as currency will certainly be as
valuable and worth RS much as the bank
note Tor which 1t was a security, and it Is no.
tari9us that notes OF the free banks of louisi-
ana passed freely here aud elsewhere at par,
The advantages of this plan Of adjusting the
debt are so obvious, and it would accord the
people go many money facilities that we be-
ieve that with the exception OF the adyed in
the WOOL regulators they would be better
satisfied IL the debt We're converted into cur
rency bonds, bearing . and 1 per cent interest.
than Ii the debt were accepted Ia its present
shape with the interest reduced to two per
cent. The burden OF one cent or two cents
additional interest would be largely Offset by
the great benefit the people would derive
from volume OF currency In some degree
adequate to the necessities Of the trade and
industries Of the State. The imposition OF
the two per cent tax On State bank circula-
tion is, to a certain extent, measure OF the
benefits the business VI the State derived
from that circulation. and which It would