The Louisiana Democrat., 1889-10-02
ABOUT TIE STATE BONDS.

lsIana has any matter created as much
excitement, as much talk and gossip,
as the recent revelations of certain
State bonds being in circulation, and
upon which the State has been paying
interest, aud which were fraudulent
and which had been repndiated and
ordered destroyed by the Constitutional
Con vention Of 1879.
| The papers for the past week have
been filled with articles concerning
this subject-all sorts of opinions and
theories are discussed and advanced
in the matter, and just how the whole
business will conclude, will be only
known when legal examination of
the case is made.
Major Burke, the ex-State Trcasu-
rer, who is solely responsible for the
bonds, and who is now on his way to
the United States, having left London
Saturday by the steamship Etruria,
has cabled over that be will straigbten
the matter, and that the State shall
not lose q cent. We hope so, both
fol the good Of the State and the
Democratic party.
Below we publish an analysis of
the official statement Of the State
Auditor and State Treasurer, made to
the Governor, on the bond fraud,
which we clip from the Picay,sae:
The report shows that new constitu-
tional per cent bonds were printed to
the amount of 81, 500, 900, of which $671,
700 worth were properly signed by the
acting Governor and the Treasurer, seal
ed with the State seal and turned over to
| the Treasurer, to be paid ont in exchange
| for whatever of the old consolidated
bonds might be offered, in accordance
| Wild the funding act of 1880. AS only
were ever legally issued balance of
$l53, $50 of the bonds remained in the Gus
| tody of Treasurer Burke. AS these bonds
are not III the treasury and were not turn
ed over to Treasurer Pipes when the
! treasury was transferred and as coupons
| corresponding to the number of some Of
| these nn,ssned bonds have been presented
| for payment, the inference is that a part
| of them at least has been put in circula-
| ton. while the whole amount has been il
legally taken from the custody of the
State officials, that is, have been stolen.
Prior to 1888 $3.50, 900 Of old consolida-
ted bonds were exchanged for the new
constitutional per cents, and according
to process verbal these bonds were pro-
perly destroyed. In 1883 $25,200 more
consolidated bonds came into tue treasu-
ry III exchange, and as coupons of these
bonds have been recently cashed by the
State it is evident that they have never
been destroyed and are illegally in circu-
lation The Agricultural and Mechani-
cal College bonds held in the State Treas
ury, aggregating $27S,400, were declared
null and void by the Constitution of 1879
and were ordered destroyed. As the col
pons of these bonds have also been regu-
larry paid of late years it is evident that
they were not destroyed and that the
whole amount is i'll circulation. This
amount added to the $25, 200 exchanged
for new bonds in 1883 and reissued fraud
nientiy aggregates total of $303, $50 of
illegal consolidated bonds that are known
to be in circulation.
These facts being explained the amount
OF the fraud perpatrated upon the State
and people can be summarized as follows:
Mechanical and Agricultural Col
ieSe bonds Illegally issued. -. .$27S 400
Consolidated bonds exchanged for
new bonds, ordered burned, but
fraudulently reissued. ......... 25,200
Unissued constitutional bonds
properly signen and sealed, sto-
len from the treasury 453 400
$4,000
This amount, added to the $4,000
claimed to have been paid by the State as
interest on the fraudulent bonds, agyre-
gates total as far as definitely known of
1927 900.
Although the full amount of unissned
constitutions! bonds that were properly
signed have disappeared from the treasn-
ry but Il small number have been discov-
cred in circulation here, but it is possible
that many OF them ure pledged to banks
or private parties to secure loans, or
have been put in circulation away from
here.
This matter should be thoroughly
sifted and the guilty party or parties
punished, and that too severely. The
general sentiment of the people seems
to be that way inclined.
The Shreveport Caucasian has