The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1849-03-19


Municipality We shall endeavor to perform that
promise this morning, leaving some other observa-
tons which we deem it important to make upon
the financial condition and prospects Of this part Of
the city, until future occasion. But before go
into the merits Of the subject, we cannot forbear
the expression Of our regret that the committee,
under the rules of the Council, should always be
required to make its report ON the eve Of muni-
cipal election 1t is the worst of all periods for the
careful and candid examination of the important
matters inyolved-political feelings are enlisted
and mems prejudices and passions are called into
play, and serve to dstort their views, and pervert
their Judgments One side will praise unduly,
and the other will incline to blame where blame
may not be deserved. Even in our own case-and
we think We can say with a clear conscience that
whatever we may put forth has sole reference to
the public veal, without any intention to attempt
an influence upon the elections-we feel under a
restraint in writing, and have well grounded fear
that whatever we may say will pass comparatively
unheeded, while at any other time our citizens, of
all parties, would feel lively interest in the SUBJ
jec, and givelt that impartial consideration which
its relation to their well-beng richly deserves
But we had neither the making, nor the timing Of
the report, and we must take it as it is and when
we can get it.
To come then to the Funding System of the COM
mirtee, what it is, and what is expected from it,
thus set forth in the report:
" The funding Of the floating debts of the NUM-
" cipalities, under the Act of 18th May, 1847, at
seven per cent. interest," Mould at once ertricate
" them from all pecuniary embarrassments, and
would insure the punctual payment of the princi-
opal and interest. Were it SO funded, and it
no mad U "a he 6ufu of fha
Council to provide annually for the payment Of
y" the interest and principal of the City Debt the
Municipal Idres could at be reduced at least
" one-haLf, while the tax laid by General Council
" need not exceed So per $1,000"
To relieve the Municipality from all pecuni-
airy embarrassments, at the same time that the
taxes are reduced one half, is certainly consum-
nation devoutly to be wished, and we are sur
prised that our enlightened and public.spirited Al
dermen have let two years eapse since the passage
of the law without resort to this great measure of
salvation and relief. We are afraid, however,
that there is some exaggeraton in this view of the
case. 1t is no easy thing to discover the mode by
which the end would be obtained in adopting the
scheme of the committee. The funding of the
floating debt does not seem to be cause which
would naturally produce such desirable effects.
The act of l647 referred to- in giving the authority
to the Councils to fund their debts, says: 4
"Ihat each municipality of the city of New
Orleans be, and is hereby authorized to fund all
or any portion of its eristng debt, or to borrow
money for the purpose Of paying its ersting debt,
and to that amount, by issuing bonds therefor,
payable at period not exceeding thirty years,
and bearing interest not exceeding seven per
cent. per annum, payable semi-annually, which
bonds shall not be disposed of at less than par'
1t would appear then that this funding does not
pay the debt; it only postpones the payment, and
adds to the principal interest of seven per cent
year;or for the thirty years, two hundred and ten
dollars paid upon every hundred dollars of the
debt now existing, leaving the principal just as at
present, to be refunded perhaps in perpetuity. If
the municipality were bankrupt and could not pay
any portion Of this debt, and had the prospect of
being more able to pay it hereafter, there might
be some excuse, in the necessity of the case, for
funding it; but with revenue of $85O,OOO We
can see no excuse of adding to the permanent debt,
and the permanent burdens of the community; as
to the decrease of taxes promised, we have heard
of that often that not disposed to put the
slightest faith in it. Every loan made, has been
preceded or accompanied by the promise of reduced
taxes and even while the bonds of the munich
pality selling for eighty cents the dollar,
with taxes altogether, and partly, if we remember
rightly, from the effects of these profitable loans.
But the taxes and the debt have increased in equal
pace and the interest of the debt forms the
cessty which compels heavy taxation. The habit
of running in debt is growing one-it becomes,
like all bad habits, the stronger from being in
duIged and, however pleasant it may be to put
off our obligations upon posterity, past experience
shows that we are in danger, by doing SO, of ruin
ing ourselves by the price which we pay for the
delay.
But there is another inquiry which deserves to
be made. What constitutes the present floating
debt. Was it part of the eristing debt" of
May, 1917 or have large portions of it been con-
traced since II it were part of that debt, it may
doubtless be funded under the law /; but if more
than one hundred thousand dollars of it have been
contracted since the passage of that law, UGH
surplus has been created in the face of its positive
prohibitions, and not only cannot be funded but
cannokeven be legally paid, except out Of the pock
cts of the Aldermen by whose acts it was incurred.
This is part of the subject well worth investiga
ton, and it will, presume, lead to future inquiry
For the present, let us proceed with the funding
scheme After stating that it will put an end to all
embarrassments, and reduce the taxes one-half,
the committee proceeds to illustrate its beneficial
operation in its own lucid style, by the following
striking example:
1t may be we'll to show how important the
:" measures proposed are to the Taxpayers of this
y Municipality, and with how much advantage to
g themselves they might cooperate in their adop-
:" ton by aiding in funding the existing floating
"debt A person taxed on Capital or Real Estate
:" valued at $4,000 now pays $780, If he should
fund of the floating debt $1,000, he will receive
ANNUALLY $40 interest, and his annual tax, sup
"posing but two-thrds of the floating debt should
be thus funded, would be reduced one-half, say
fifty dollars, the interest received and dimn-
4" ished tax together, would be one hundred and
twenty dollars per annum, or twelve per cent. on
"the investment; but this diminution of tax also
"cofntemplates the city debt and interest being
provided for by the General Council, and the tax
laid by that body therefore to be three dollars per
$1,000. In such case the taxpayer would receive
&c and save equal to nine per cent per annum in
his investment of one thousand dollars, and would
most effsctualy have contributed towards res
+" cuing our city from the reproach TO which it is
now subjected
If any one after reading this will not be satisfied