New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1867-06-12
TIE STATE FINANCES.

Governor Flanders finding the State with
out dollar in its treasury, or credit to
raise funds to pay its officers, has, with
commendable promptitude and zeal, as has
already been mentioned, gone to work to
devise means to raise money to carry on the
working of the State government. The
State penitentiary must have funds for its
support, come whence they may. The
charitable institutions heretofore supported
by the State must have money Immediately,
or their hapless and afflicted inmates turned
adrift on. the world. The governor is fully
alive to this grave stale of affairs. He has
called to him for counsel the State auditor
and treasurer with view to remedy tenn
porarily, at least, the existing financial diff
Guilty.
authorizing the issue of certificates of in
debtedness to the amount of $4,000, 900, and
of bonds for the funding of that sum.
These certificates passed as money at first
at small discount, but gradually became
deprecated until the present time when
they are at discount of twenty per cent.
The sum of $500, 900 only of that amount
was applied to the current expenses of the
State; the balance, 81, 700, 900, was Illegally,
though perhaps unavoidably, applied to the
building of levees.
Another and subsequent act of the year
1866 authorized the governor to issue GER
tificates of Indebtedness of the State to the
amount of $500, 900 to defray the expenses
of building levees. The certificates con.
| al l.v4 1a 10 81 na+ haxr
not yet been issued. The first act of 1866
requires the certificates when received by
the treasurer in payment of State dues to be
Cancelled. They cannot be thereafter re-
| issued. The board of levee commissioners
having received ST, 200, 600 from the current
expense fund without authority of law, in
stead of the appropriation of $500, 600 made
specially for leyee purposes, the auditor
| doubted the right of the State executive to
issue the s500,000 appropriated to that
board The question was referred to the
| attorney general. The following is the
| opinion of that officer: 8
| OFFICE OF ATTORNEY GENERAL,
| New Orleans, June III, 1857.
Honorable H. Peralta, State auditor;
S1R--If l have misunderstood the facts
connected with the issuing of certificates of
| Indebtedness, they are simply these: under
| act No. of the acts of 1866, certificates for
| $500 900 were issued for the purpose of pay
| ing the current expenses of the State and
were applied to that effect; and the sum Of
ST, zoo, 900 was issued under that act, but
was turned over to the board Of levee COM
Inissioners instead of being applied to the
current expenses of the State.
You inquire of me whether certificates of
| Indebtedness to an additional extent OF
$5O0,000 can be issued under the act above
referred to, taken In connection with act
No. 1856 of the same year, which makes II
the duty of the governor, in behalf OF the
| State, to issue, from time to time, and for
levee purposes, esrtifates of indebtedness
| in sum not exceeding $500, 900.
/ am clearly of the opinion thatthe power
to issue certificates for the purpose Of pay
ing the current expenses OF the State
| applied, has become exhausted, and that no
| further certificates of Indebtedness can now
| be issued under said act, No. 8.
The board of leyee commissioners has re-
ceived from the general funds of the
State 81, 100000; but the certificates Of in
debtedness contemplated TO be issued Tor
levee purposes. and embraced by act No.
1856, have not been issued The governor
has the right, under the last mentioned act,
| to issue these certificates, notwithstanding
the board of levee commissioners, through
a misappropriation, has received a much
larger amount of money than that conten.
plated by the legislature. The exercise OF
this right ought, however. to depend ON cir
cumstances.
If.the certificates Of Indebtedness author
lied BY act No. l35 can, when issued, be 50
used as to place their amount back into tne
generar funds Of the State, and thereby
make coed, pro td3ai0, the amount whach
the board of legee commissioners I'M
properiy received out Of the general funds,
then II viii be all right and proper to issue
the Certificates. But II the hsuing Of such
certifcates Is to have the effect Of their
being put at the disposal of the board Of
levee commissioners. under these eircuqar
stances the certificates ought 70 be with
held. :.
Very respectfully your ebealsat servsns'
- 2 w. a >. L. EXKGHs