The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-05-02

i 49, @S
prepared to report for some time. Hereafter
| the Convention will meet Ct ! o'clock, in
order to afford them more opportunity to
consider the business In hand.
BONDS AND CURRENCY.
Some time ago the DEMOCRAT suggested
that the State debt should be converted into
currency bonds on the plan recently adopted
by the State Of Georgia In the disposal OF her
new loan Of four millions Of dollars. Our
suggestion was, that when the body OF the
debt was satisfactorily adjusted II should be
converted into bonds Of five, ten, twenty, hfty,
one hundred and one thousand dollars each,
bearing four per cent interest This scheme
has worked admirably In Georgia; nearly the
whole loan was taken In the State, by Its own
people; 1t has given them the currency they
needed and the bonds are commanding o
premium.
| Since the DEMOCRAT made this suggestion
II has been very generally discussed, and we
have heard OF no pronounced opposition to It,
and but few doubts expressed or Its practicable
ity as great measure OF relief. Upon the other
hand, 1t Is now warmly advocated In influen-
tial quarters, and yesterday representative
Of two hundred and fifty Thousand dollars Of
State consols, held abroad, told US that he was
prepared to accept such an adjustment Of the
debt, and that he was cordially In favor OF IT..
From the several members Of the Convention
with whom we have discussed the proposition
we have heard only favorable opinions.
Indeed, the only objection we have heard to
the scheme from any quarter Is, that the
bonds would be at discount, and conse-
quently they would constitute q very obiec-
tionable and inconvenient currency, which
would have no circulation outside OF the State.
Without doubt these bonds at first would be
at discount, but 30 soon as the people be-
gan to realize their character and convenience
they would be taken throughout this and
adjoining States and pass everywhere at
their full face value The larger bonds might
be bought up Ia New York or Europe, but the
small ones would be retained here and pass
rapidly into circulation like greenbacks or
national bank notes.
We are convinced that this scheme, II car
RED into effect, would prove great measure
OF relief to our people and to those of the
States tributary to New Orleans. The impo-
sition of 10 per cent tax on State bank circu-
lation and the passage OF the resumption act
have bound New Orleans and all the cities Of
the Southwest In commercial vassalage to
New York. We doubt II more potent cause
has operated to cause the commercial decline
Of New Orleans and ALLEVIATE from her 80
much OF the territory she once controlled.
The free banking system OF Louisiana was
an immense power to this city. 1t rendered
the volume OF the currency flexible and per-
mitted 1t to be adapted to the necessities
of our then great and growing trade. New
Orleans was then the great money centre Of
the Southwest, and the money Of her banks
constituted the llfe-blood OF the industry Of
half dozen States. She was then. to those
States, what the financial policy Of the Fed
eral government has made New York to the
whole country-the mistress Of their krade
and the patroness of their agriculturalt bus
tries.
It is certainly important to seriously Scon-
slider and weigh any proposition which FROM
ises to restore our commercial supremacy and
make New Orleans again the money centre OF
the Southwest.
The State banks are virtually prohibited
from issuing notes; but the conversion Of the
State debt into four per cent currency bonds
will, In our opinion, fully answer the purpose
and enable the banks to operate on currency
safer even than their own notes. It
must be remembered that the basis Ut the
State bank circulation was chiefly, under the
law, State and city consolidated bonds. Why,
then, may not the bonds which constituted
the basis OF that currency and it's security be
converted into currency themselves and pass
freely at par, just as the bank notes did2
They would be just as convenient; they
would have the advantage Of bearing interest;
they would be secured by the pledged faith
OF the State; and whether the banks that
issued them broke or not the note or bond
holder would be perfectly secure
That the trade Of New Orleans and the
agricultural interest Of Louisiana, Texas,
Mississippi, Arkansas and Alabama need and
demand more money for their invigoration
and development no rational man will
deny. The scheme we propose will fur
nish those States with several millions
OF additional currency. The national
banks are powerless to aid the property
holders and the planters. Every planter and
real estate owner knows that the banks are
prohibited by their charters from loaning a
dollar on real estate, and that the planters
must make the best terms they can for
money, and that very often they are forced to
| make very oppressive terms. Under the plan
| we are discussing the banks Of the people, the
! free banks, could resume operations, and In
the regular way supply the agricultural dis
tricts with the money their impoverished
condition SO much requires.
We commend these views to the considera-
ton of the Convention. We are convinced
that the scheme, Ii carried out, will be Of In.
calculable benefit to the country as well as te
the city.
MAKE HASTE SLOWLY.
| We have heretofore commented upon the
promptness with which the Convention