The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1867-02-06
subjectto the following deductions:

subjectto the following deductions:
Redabre. for cancellation $425,OOO
Made and not paid OUT. 63,235
On hand, not made. $50. l04,090--592 235
Amt. in circulation Jan. l, 1867 81 ,40s, 765
The foregoing figures are deemed sufi.
Gent to enable you t. comprehend the sit
uation of the treasury. and to appreciate
the necessity of prompt relief, to enable
the State to meet her obligations. The
auditors estimates for the current year are
predicated on existing sources of revenue
and expenditure, and his statement does
not materially vary from the results of the
past year. He thinks the expenditures
can be brought within the receipts, but in
which calculation no provision is made for
expenditures ON account of levees, nor for
the redemption of State notes, which will
be received for taxes, and it may be safely
assumed that the whole amount now out
standing, will be paid into the treasury
during the year. These notes not being
reasonable, provision will have to be made
| to place the treasury in funds to meet the
deficiency arising from their absorption in
the payment of taxes The seven hundred
held by the Treasurer in exchange for
notes paid to the Board of Levee Commits
sioners, might be sold and the proceeds
paid into the general fund, which would
materially contribute to the relief of the
Treasury, but still leave large sum to be
provided. In view Of the failure of the
experiment to make these notes a circula-
ting medium, the question arises for your
consideration, whether it is not the best
policy to provide the means at once of re-
deeming and cancelling the whole issue,
for so long as they are matter for dis
count and speculation, the credit of the
State suffers. Revenue measures might be
devised to increase the income of the
Treasury, which would obviate the neces-
sity of borrowing or resorting to an in
crease of general taxes, and which could
only be made available for the ensuing
year. In this connection, it is much to be
regretted, that the revenue measures pro-
posed at the last session should have failed
the country to be, in having to choose be-
tween resort to additional taxation and
the discredit of the State by the non-pay-
ment of her obligations, / should have no
hesitation in recommending the former
1t is in vain to expect this credit to be re-
established unless the plighted faith Of the
State is preserved. Yielding to the wisdom
of the Legislature, approved the bill
passed at your last session, providing for
the payment of interest due, by process
of funding in new bonds, but / thought
then, and experience has confirmed my
conviction, that the policy would have
been to have borrowed the money at any
sacrifice, to have kept the faith of the
State. The future prompt payment of her
obligations may do much towards regain.
ing her credit.
The report Of the Board of Leyee Com.
missioners will inform you of the progress
made in securing the levees to protect the
alluvial lands from overflow. and the ex-
pendtures made by them for that purpose.
Having assumed the responsibility of let
ting out the contracts on the part of the
State, for the building and repairing of the
broken levees, in advance of the meeting of
the last Legislature, and organized the
present Board of Commissioners, to man.
age and superintend the same, l have felt
not only deep public interest, but per-
sonal concern, for the success of the work
undertaken. The Legislature, at the extra
session, promptly approved and ratified my
action in the premises, and to provide.
means to pay the contractors, authorizedat
the same session an issue of one million
dollars in bonds. bearing s per cent. inter
est, and placed the same at the joint dispo-
sal Of the Governor and Board for sale or
negotiation. In conformity to the law, the
bonds were advertised, consuming thirty
days in the operation, but as might have
been expected, from the phraseology of the
act, in which it was implied that the bonds
were limited at par value. no bids were re-
ceived. Whether such was the meaning of
the Legislature, have no means of know
ing. II it was, Lam at loss to under
stand their reason for approaching the val
ne of these bonds to such high figure,
over the old bonds Of the State bearing six
per cent, interest, and which were at that
time quoted in the market as worth not
over seventy cents Oh the dollar. Owing
to the delay in waiting for bids, the first
payments to contractors fell due, with not
one dollar in the hands of the Board to pay
them. Having absorbed all their means IN
the purchase Of outfit and supplies, and re-
lying upon punctual payment by the Board
to their men, the default of the State to
meet its engagements under the contracts,
operated as q serious impeachment to the
progress of the work. Contractors were
compelled to 60 in the market with their
certificates, and borrow money at a rate of
discount, or abandon, their contracts, and
to accomplish which, they were detained IN
the city for weeks, when their presence was
needed on the works. To this cause, more
than all others combined, do / attribute
the failure to complete the large levees in
time to resist the last high water. The
suffering TO individuals, the loss of proper
ty, and the damage to the reputation Of our
State, which ensued from the breaking of
these lsvees. is deprecated by no one more
than myself. The Board of Levee Commits
sioners have failed to sell the bonds after
repeated advertisements for proposals, and
sending agents to New York specially, to
try their negotiations in that market, and
being in absolute need of funds to pay con-
tractors, were reduced to the alternative of
suspending payments altogether, or to raise
money from some quarter. In this extrem-
ity, aud in consultation with the Auditor
and Treasurer Of the State, and with their
assent, it was determined that rather than
let the work stop, which would not only ex-
pose the State to another disastrous over
flow, but involve the loss of large sums ex-
pended by the destruction Of the unfinished
levees, that the State Treasury should come
to their relief, by giving them in exchange
for seven hundred bonds, an equivalent
amount of State notes, or certificates Of in
debtedness. This amount was paid on my
order, to the Chairman of the Board, and
as security therefor, the bonds are held on
deposit by the Treasurer subject to the
disposition Of the Legislature. I am aware
there was no warrant in law for this trans
action, but ! considered it justified to meet
an extreme emergency, and it being simply
an exchange of one species of obligation Of
Indebtedness, for another of equal, if not
greater value, under the terms of the law
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