St. Landry democrat. (Opelousas, La.) 1878-1894, 1893-09-02
State Purchase of State Bonds,

y. o. States.
In our columns this morning will he
! found the views OF State Treasurer
Pickett on the proposition that the State
shall invest tho surplus of the interest
fund in The purchase of her own bonds.
! We produce the Treasurer's uttcranccs
from the Shreveport Progress.
| In our opinion the Treasurer has taken
the correct ground. Waving here any
discussion OF the constitutional obiec-
! tons lie raises to the manner OF carrying Z
| the proposition of the State Board of
| Liquidation into effect, it is impossi-
ble to see the wisdom, or the common
honesty, of expendiDg this interest sur
plus of 1896, 900 or say, 100000, to boom
State obligations which will not be due
for fifteen years, when the State has
outstanding and long past due obliga-
tlonS, created and recognized by her
own Legislatures and Governors, elect
ed freely by her own people, unprovided
for; obligations, too, which are held by
her own citizens who, trusting in the
faith of the State, have received them
as pay for honest work done for the
State or by those who purchased and
paid fOy them in good money.
On this point Treasurer Pickett, con-
ceding that the proposed purchase would
cause the State bonds to go temporarily
to par, says;
But have grave doubts relative to the bonds
remaining at par after the State withdraws
from the market The mere act OF the State in
retiring 5000 or 100000 worth of bonds, is
not sufficient to establish confidence with tho
capitalist, when he knows of % 500 900 of out
standing debt without any provisions made
lor ITS payment, which he looks upon with
suspicion as a partial reputation. Now I
looE upon States liabilities III tho same light
that 10 upon those Of an Individual, and in
order to establish credit above reprOach the
past due, which would establish tho value Of
her bonds at par and maintain them.
II the Legislature at its next session would
all valid outstanding debts of the State 81
funding them into the new consolidated bonds
the Indebtedness of the State would be conccn
restored and our State bonds would be eagerly
taken at par in New Orleans, New York and all
Other 4loney centets.
These are sound views, clearly ex-
pressed and though Treasurer Pickett
belongs to party that is accused of be-
ing favorable to a wildcat scheme of IL
nance, we arc bound to confess that, in
the brief compass of tho two paragraphs
above auoteds be has expressed the only
sound views on the proposition of the
State bond purchase that haye been Civ
gu to the public. We earnestly COM
mend them to the consideration of tho
Governor and the other members of the
Board of Liquidation.
4 desperate effort has been mado to
work up a great enthusiasm over this
little scheme to sink 100000 or 100000
surplus into the whirlpool ct eleven or
twelve MILLIONS OF dollars 0f State iu-
debtedDess, due BY another generation. |
A fnn Il hx>n
by the Stock Exchange; but |
that endorsement amounts to nothing |
when it is known that it was carried by
q bare majority of the members present, |
and that number of tho largest lrol.- |
ers in the city were absent,
Tho scheme, il carried ont, will do the |
public no good ; it may temporarily raiso
the quotation of State bonds, and some
brokers may make some money out of
it, But, as Treasurer Pickett well says,
The rise will be temporary, 80 long as nO
provision is made for the floating dett.
ong past maturity, aud Which is just as
honest and righteous al obligation 3s is
the consolidated debt. The State Board
ot Liquidation are mistaken it they i'm
aglne that they can boom State bonds
md raise the credit Of the State by this
venture, which is u virtual declaration
. tho financial world that The honest
1oating debt OF the CommouN ealth of
louisiana, fifteen years after the cmau-
;ipatiOn OF the State FROM negro and
;arpet bag rule, aud its restoration to
he control Of its own people, is TO be
epudiated.
It this surplus is invested as proposed
t may, rs VIC hayo said, temporarily
boom tho consolidated bonds but as
ertaIn us the SUI shines, when the fact
hat il is siluply preliminary step to The
epuuiatioD Ut an huucst debt becomes
.nowu, there will be i, decided reaction.
We suggest that tIle State Board of Lii
uldation bear III mind the truth 50
expressed, that unset
led debts have Reconsideration for the
eneas of the credit oi States.