The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-11
"p. q. g." ANB THE STATE DEBT.

appeared a communication on tho State debt
by I'D. g. L." In which, among other things
he endeayors to show that the approaching
constitutional convention cannot, without
violating the constitution OF the United
states, and provoking the interference or the
Federal government, either repudiat or scale
the State debt
The legal arguments Of I'D. 9. L." upon
which he mainly relies, have been unanswer-
ably met by your very able correspondent
sispes," but as some other points have not
been referred TO In the discussion, / will make
a few observations ON them.
For lawyer ID. q. H." seems 20 be
strangely impressed with the absolute power
and authority OF demonstration of the United
States, threatening the convention that n IL
ssinterferes or NEEDLES with the State debt
except 10 eatort the interest from the people,
its act, by the supreme law OF the land, will
be rendered null and void"
Now /, In my ignorance being no lawyer
have always believed that the constitution OF
Che United States had no authority to exer-
else any control over the action of the States,
except In regard to those questions where the
power was expressly granted or conceded by
The States In the compact itself.
Although no lawyer, take issue with the
gentleman, and deny that the general govern
Inent possesses the power 81 preventing a
State from regulating or scaling its debt, or
has the power u compel 1t to pay either the
Interest or principal of the same.
10 sustain his views, he relies upon two
clauses In the constitution one which de-
1nands that each state shall have O republic
can form of government, and the other, that
no State shall make any law impairing the
obligations u 4 contract. With regard 70 the
first, how the untrammeed exercise OF
sovereign power by the people of State upon
Reputation, or any other measure, Ia unre-
publican, ID, 9. L." has not explained, nor is
III one of those propositions 30 obvious that
the mere statement compels assent 90 lar
from being true, l assert that no govern
ment can really be republican which posses
see the power to contract debts and is denied
Che power OF repudiating them, either wholly
or In part. Suppose the power of contract
Ing debts Is carried on to an extent that the
annual interest thereon will exceed the annual
net proceeds of all the productive industries
of a community, after the necessary expenses
In this condition OF things mot an imaginary
one-it III evident that the people cannot ex-
ercise any power through their government
that will In any degree be conducive to their
interest," and thus all the substantial rights of
self government will be denied them,
rs IL will DO utterly impossible by
III agency TO retain possession OF
their property, the security Of which is the
DTltnnTy anu aItnOSL tAClHhiNb HuEVbte vi Ill
government. Hence self-government, except
as mockery, cannot co-exst with the UNI
limited power to contract debts with no
power TO repudlate the same.
But ID. u. L. chiefly relies upon that
clause In the constitution which says, mo
State shall pass any law violating the obliga-
lions of contracts" Able jurists have held
that this applies TO the jurisprudence of q
State az affecting individuals or property
within its territorial jurisdiction, and has no
reference to the contracts or obligations of
itself; a sovereign State which is not subject
TO legal process to compel its action. How
ever, let that be as II may, we have the high
authority of MIR. }. T. Benjamin, as recently
published, who says substantially that II q
State repudates its debts the public creditor
has no remedy either in State or Federal
seourts.
But II there was doubt with regard TO the
Fpower OF the general government, IL Is set at
rest by the examples OF Mississippi, Georgia
and Tennessee, which have repudiated their
debts wholly or in part, and have In conse-
~quence reduced their taxation and are pros
sering.
i agree with ID. G. t." that much relief to
this tax-impovcrished people would be Oh
tained by the establishment of an economical
government, so that our public expenses
could be reduced to the lowest possible point |
consistent with the existence of govern |
ment exercising only its legitimate func-
lions.
But this alone will not confer any substan- |
tial advantages on the people, who are gradu- |
ally but surely perishing from the abstrac- |
ton of capital from their productive indus |
tries by the tax-absorhing and consuming |
powers With five and a hall mills, which is |
anadequata to meet the interest on the State |
debt, and the lowest possible tax TO support |
the State government, besides local taxation,
this community cannot recuperate.
For the Information of ID. G. L.. / will in |
form him that the average State tax through |
out the Union Is but a tribe over four mills |
rejecting Louisiana and the two tax-im- |
bAdS fnf NJ South (laralina and A p
kansas, the average is but trifie in excess Of
three mills and yet they are claiming that /
their taxes are excessive, and are taking steps Il
Tor their reduction.
With ali respect to I'D. G. L." who Is no |
doubt an able lawyer and perhaps profound /
-5urist think he has taken a narrow view OF
the subject. He seems to be unfamiliar with |
government a. science, and has apparently L
never considered those natural and social /
laws which affect the wealth or prosperity of |
communities. lie discusses the questions in
controversy as lawyer and not as states
naah, iorgettul that the subject is political
sa wv leSal, ana Is apparently Ignorant OF
Sne Iact that laws, however wisely framed
anu ri2luIy executed, cannot overcome physi-
cal or moral Representatives,
lie discusses the subject as ~ IL wac nura1y |
an abstract one, instead of being of yraat and
overwhelming practical significance He is
evidently Obvious to the fact that there Il j II
a'1 I'm lat aoove and beyond that of the Fed
ere, NEUTRALITY-SUSPICIOUS. that it has ali the l.
suenorlty he comedies to ia newer urbioh
sets both State and Federal courts at defianca
: Ieler 70 the absolute and supreme power n
saettsys lne lhanllty Of the people OF Louis
lama 70 pay the taxes now imposed an ma. |
az Ine effort, whether voluntarily or forcad'
N9olo only send them deeper into irremadi,
s ss, oesututlon. Too frequently the bond
aso.uels Milo has direct interest In the axac |
Ton 81 taxes, can neither comprehend A H.
potent Tact Of the inability Of tia nennla 't y
LAY sag pr sent rate of taxation, nor the de-
ton OF al industries, which result feeE .
elorI Ihe public creditors~whose ra sIiS
she nan NJ nj Is Wish e repudiate well as
s-ns,sse a y al Whose claims on the gov
- a..a zterested in great reduction Of taTe
49,; Re Le lac end that capital may be 1e-
= tt Ssss5 LA e RfrftSS s aag e the Increase
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