Louisiana capitolian., 1880-03-20
THE CITIZENS BANK.
New Olleana CITY Item.

This bank was established nearly
fifty years ago for the specific purpose
of assisting in the development of the
agricultural resources Of the State.
TO this end it obtained II loan Of the
State credit and made extensive adj
vanccs on real estate and slaves,
which, ut the time, were classed to-
gether rs securities. From year tO
year it's affiuirs went on sWlmningly,
and when the war commenced Citi-
zcns' Bank mortgages dotted over the
entire surface of the State, as would
be shown by any State map on which
these mortgaged lands were marked.
One of the results of the war, and one
utterly beyond the control Of our peo-
pie, was the abrupt termination Of
negro slavery, thereby sweeping ont
Of existence, as property, what had
previously been recognized and pro-
tcctcd rs such by the laws of the land.
Il followed that in cases where from
fifty thousand to Il hundred thousand
dollars were borrowed on the security
of q plantation aud slaves, neither the
living nor the dead pledge could bc
made available in payment. The ne
gr0es had ceased to have a recognized
commercial value; and the plantation,
through sympathy, had fallen to less
than n fourth Of its former price.
Many of the involved proprietors,
under these circumstances, abandoned
their plantations entirely, while others
went on hoping against hope, paying
interest as best they could on negroes
which had died or were long since
emancipated by the supreme action
of the government. The time has ar
rived when such an arrangement can
not be continued, and the State must
intervene for it's own security and the
advancement of public interests. TO
this end an act has been prepared
which will doubtless secure favorable
consideration in our General Assem-
bly,. 1t runs thus:
BE it enacted by the Senate and House Of Rep.
resentatives of the State of Louisiana, in General
Assembly convened, That the Citizens Bank OF
Louisiana, in addition to the powers now con.
fcrred by law shall have power TO compromise
and settle the liability Of the mortgage stock.
holders of said bank; said compromises to be
made when deemed judcious by said bank and
with the assent Of the bondholders, on sncb
terms as may be agreed upon, and when effected,
the said stock mortgages to bc released and can
celled.
g. That all sums realized from said c0mpromi.
ses az well as from the enforcement OF said
mortgages by the usual legal proceedings, shall
be held and applied by the banking department
of said bank and Ito the satisfaction of the bonds
of the State issued in aid Of the bank, and to
the necessary expenses Of said mortgage stock
department.
In its banking department the bank
stands well, whilst the mortagc de-
partment, through a supreme act OF
war, imposed through Federal author
ity, is incapable of securing return
of its loans, or of relieving the State
from liabilities incurred on it's behalf.
TO let the matter run on as it now
stands is simply to make it worse.
The mortgaged property must be dis
posed of before sproductivc and tax
yielding power can again become
available; and in order to dispose Of it
the bank must he authorized to make
compromises with the mortgage stock
holders and bondholders, and furnish
purchasers with satisfactory titles.
This can not be done at present;
hence the necessity of an enabling act
These mortgaged lands must again be
brought into market, or remain an in.
cubus upon our progress,