The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-05-03
from the French side Of the New Orleans Bee
AanciaI Plan Proposed to the City Of New
Orleans.


give publicity to all the details il required aud on
which to base direct proposal to the City
Council.
Several projects. having the same object in view,
were then under discussion, and one of them had
been initiated for final execution. We did net de-
sire then to offer what might have appeared sell
fish opposition; and preferred waiting the result
We felt 10 be inevitable TO the project Of selling
the lease Of the markets for long period, with a
view TO withdraw the city currency from crcula-
ton and re.estsblsh the shattered credit of the
city.
We now confidently claim that the city can
adopt but one method to restore her credit, and
that method is to be frankly and promptly guided
by the experience Of other countries under like
circumstances.
There is q vast and important result within the
reach Of those who may be the first, in this in-
stance, to practically apply financial principles,
the successful results of which must be inds-
putable. especially in this country, to build up
public credit. Public credit, il can be said, does
not exist here; and 1t will not exist on firm
basis until the owners of moderate resources
shall be freely offered the opportunity OF those
investments in public securities that have hereto
fore been reserved for few privileged CAPT.
talists.
In France, for example, a powerful barrier has
been raised against the political revolutions be.
fore SO frequent and ready there, by first enabling
the small proprietors, even the daily laborer, to
become one Of the creditors of the State thus in.
Producing democracy into governmental finance.
of public order and opposed to the violence of
political intriguers, being satisfied that peace Is
the best preservatve of his interests.
There came the method of raising money by pub
lie subscriptions to the stock of great public
financial enterprises, like the Credit Foncier. for
example. A number of cities, such as Paris,
Vienna, Frankfort, Bruxelles Bordeaux, Mar
settles, Rouen, Lille and others in France, Ger
many, Belgium and other countries, through this
methed obtained the use OF large capital and de-
volOpQd thprahv l0oal raa of valua hitharto
unknown, unthought of or unproductiye. Through
this system the Credit Foncer was enabled TO
make loans Of an enormous amount, at very
low rate of interest; whilst the cities were ena-
bled TO borrow sums relatively large, at an equally
low rate of interest, placing on the market, with
out trouble, circulation of paper that holds the
best rank.
1t is this method which we now propose to be
adopted by the city Of New Orleans. 1t needs no
experiment TO test il, or to gain public confidence
for it; there need be no hesitation about esssying
it it is bound to be adopted TO regulate and re-.
establish public credit in all countries.
By adopting this plan the city can easily liqui-
date her old debts, and at the same time raise a
sufficient amount of money to enable her to under.
take the works needed to improve her sanitary
condition, as well as those of an ornamental or
other public character, which her vast commerce
and her growing future will render Indispensable
To insure the success Of our plan we have con-
cluded to offer such advantages as to go some
what beyond the limits Of the strict economy
within which new loan, on long time, should be
restrained. That we have been guided by the
peremptory necessity Of re-estabshing the credit
of the city, by enlsting small capitalists in the
plan, even at the risk Of larger cost. Never
theless, despite these enormous advantages
offered, the method We offer the city to obtain so
desirable an object will be less costly than the
plans which have been proposed to her, and
which, after all, would not have succeeded in re-
establishing her finances and credit.
The first one suggested was for the city to issue
certificates at per cent. interest per annuh,
without fixed date payment, for the total amount
of city currency in circulation. Taking IS, 900,
GOO as basis for this ISSUE the city would have
to pay in the year 81 900 600 interest, aud her
debt would still be unpaid. Under another plan, il
the city were to adopt yearly payments, at an in
terest OF per cent. per annum and per quarter,
as the only method Of redeeming her notes, she
would have to pay, yearly, $500 900 of the capital
OF her debt and an average of $500 COO in interest.
In both cases, the new certificates, based on so
large sum, would be deprecated so soon as
issued just as the old consolidated bonds are now
s You'd s e Dfs 6ow par and To
remedy this is to our mind, the chief question at
issue.
1t is absolutely necessary that this anomalous
condition OF our finances should cease. city like
New Orleans with immense and valuable property
and well established revenue, aud whose future,
no matter what betides, Is certain to be prosper.
Gus, is bound, morally and legally. to do every
thing in her power to put her financial credit
above and beyond all possible doubt of deprecia-
ton. We are satisfied that proper appeal to her
citizens will put stop to the deplorabe condition
Of her affairs which each individual regrets and
which compromises the interests of all.
The plan proposed by Us will, of course con-
tain all the guarantees that the interest of the city
and the subscribers can possibly require. The
City Council, assisted by delegates, will be EN-.
powered to superintend the execution of the Plan
in such manner as to insure the utmost fairness
IN its management.
We do not put forth any pretensions to superior
wisdom or disinterestedness. We desire to ses put
IN operation here credit system, the striking ad.
vantages Of which, elsewhere, we have personal
knowledge of with the simple, practical and oyi-
cal mechanism of which we are entirely familiar.
And we are confident that those who, Is we are.
are familiar with financial operations Oil not fail
TO discover In the application of this new system
here, the elements OF new life and prosperity for
Dur enfeebled and depressed financial world Are
not all our financial interest commingledl Don0.
we all suffer when we are compelled to see the
best securities laid on the shelf, to be rea lied
)nly at an enormous discount? Is it not time to
cry the alarm, and to endeavor, by a combined
Effort, to re.establish general financial and com
nercial confidence
An unexpected increase of value in single
staple has done much to heal the still bleeding
wound. Should the next crop be a good one,
which we have every reason to hope il will BEL
he country can be saved; and we should leave
1aught undone to bring about this much desired
esIlt.
We will not repeat our arguments to show the
nferiority of the lottery plan, with its costly
ticket, which in the majority of cases, its owner
can consider in advance as only SO much waste
paper to the plan we propose, Of issuing obliga.
tons satisfactorily guaranteed or secured, and
bearing interest payable monthly the obligation
redeemable at par and In u. S. currency, to be
for in currency which is now at 30
y cent. discount, and when redeemed by the
monthly drawing being susceptible to return their
lolder relatively valuable premium varying from
go 600 down TO 500.
We should be only too happy were this issue of
by the city to break down those
OueTy schemes which, established and owned
abroad. regularly withdraw from circulation here
md carry away, considerable amount of gold,
rawn from the savings of the rich, and often
rom the meagre means the poor cannot spare,
,ut which he casts into the venture, tempted by |
he chances of earning suddenly whats ng years
II labor do not give him.
The plan proposed offers to every laborer ia our
ity asecure investment for his little savings. 1t,
i the same time, ensures him remuneration for |
is investment, and since the general funds of the
community, thus invested remain among US and |
,eDeft Us all, ii can be claimed for our plan that
does not violate, but rather that it encourages