The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-18

The V1PWS txUItS3Stu III bu0 OBSERVATION-DISCLOSURES
under this head; but no communications will
be printed except from responsible partes.l
THE BoNDHOLDERs AND THE PEOPLE.
To the Editor Of the Democrat:
Whilst combating the propositions OF Mr..
Semmes and your correspondent I'D. q. H.,
that the obligation to set aside and appro-
pirate five and a half mills OF taxes to pay the
interest on the consolidated bonds is q part OF
the contract with the consolidated bond
holders, which can be enforced through the
Federal judiciary, do not consider me as
sanctioning or advocating any scheme OF
repudiation such as is suggested by some OF
your undoubtedly honest and over-zealOus
friends, who propose an arbitrary scaling OF
the bonds and an involuntary reduction OF the
liabilities q the State.
differ as widely from them as do from
Mr.. Semmes and I'D. @. L." When the fund
ing act was first proposed / vigorously op-
posed 1t. 1t was forced reputation. I al
ways recognized the right and the duty Of
the State to refuse to pay Illegal and fradu-
lent debts. / knew there was large amount
OF them was unwilling to trust the govern
ment OF Kellogg with the power OF deciding
upon them. knew he and his government
aimed to rule out Warmoth and his
clique, to declare all his bonds unfundable,
but to fund all those Of their ring. Thus,
Warmoth's Chattanooga bonds, the 81, SOC, ,000'
would be shut out, but Ludeling's $4,000
would be funded. There was large number
Of other bonds In the same category. There
were Warmoth bonds and Kellogg bonds.
Each tried to cut out the other; hence, and
for other reasons, earnestly, In my sphere,
opposed the funding act. 1t would have
been defeated but for our Chamber OF Com
merce, which always comes to the front to
embrace such schemes. To this body
is due whatever Of credit and
wisdom Is due to this act. By the infiu-
ence Of this body the funding act was passed
In 1874. In Its practical administration cor
rupt and nprincipled set Of officials funded
and consolidated q large amount OF fraudu-
lent bonds. They contemplated doing great
deaf more In that line. They were arrested
and exposed the Illegally OF bonds and war
rants, q portion OF which had been funded.
1t was proposed and intended by Kellogg
board to fund the balance. Then the Legfsla-
ture interviewed and adopting the report Of
this committee OF citizens, embodied In an act
prohibition to fund certain enumerated
bonds.
But, alas over a million of these bonds
| had been converted into consols. There
were no more exchanged or issued. A regis.
ter OF the bonds exchanged for consols should
have been kept. have always heard that 1,
was kept, and that it has been made away
with by an Auditor who was indicted tried
and acquitted on the charge OF purloining the
this mode of identifying the bonds exchanged
for the fraudulent and Illegal bonds has beer
destroyed. They cannot be separated from
those exchanged for what have always beer
recognized as legal, equitable and just debts
| OF the State, which it would be diShonor tC
| repudiate or TO SCALE
| TO scale or reduce the amount OF this In
debtedness, represented by the consolidated
/ debt, may be effected with the consent Of the
holders thereof; to force 1t would be an act ol
the gravest wrong and injustice. God forbid
that Louisiana should ever stain her record
| with such an act. She may not be able to pay
with her present reduced resources, but that
is no excuse for her denial OF her Indebted
| ness and her refusal to make every effort to
pay. The present Democratic administra-
tion came In on this platform. Its first act,
| and you, as Its organ, were Jealous and elo-
| quent In the vindication Of It's high honor and
| policy In declaring the faith as sacredly
pledged to recognize and pay all the bonds
which had been converted into consoIs. You
reaped the profits OF this wise and honest
policy. The bonds advanced and with them
the warrants and the credit OF the State. You
were thus enabled to receive par for your
claims against the State, when your Radical
predecessors were subjected to large dis
count on their warrants.
How can any honest Democrat, who parti-
cipated In the perils and sacrifices incident to
| the terrible struggle to induct the Nichols
administration, now go back on their pledge
to stand by the courts In their entirety and
equality? All! We may be, and certainly
are, very poor. unable at present to meet our
obligations without starving our families or
selling our seed corn, and thus have q good
claim upon our creditors for respite or com
promise. There Is no dishonor In that But
we have no right in law, honor or equity to
deny our Indebtedness. Settle fair Ii you
never pay" is an old Virginia maxim which
ought to be always accepted and acted ON by
all honest people. Louisiana, II true to her
ancient fame. must always act on this maxim
Let her now adopt and apply it, and whilst
stoutly resisting all attempts Of judicial
usurpation to coerce her, and all surrendere
OF the right and power OF the people and
their representatives to fix and determine
the taxation and the distribution thereof In
the settlement OF the States liabilities, let
her never sully her escutcheon with the
shame and disgrace Of repudiating and deny.
ing her solemn obligations and pledges ol
faith and patriotism. A. w.