New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-05-03
lUommunicated.l
THE PROPOSED FINANCIAL PLAN.

are convinced is the only one that can re-
lieve the city of its financial embarrass.
ments and re.establisb its credit, we deemed |
the moment unpropitious to give publicity
to all the details it required, and on which |
to base a direct proposal to the City
Council.
Several projects having the same objects in |
view were then under discussion, and one
of them had been initiated for final execu.
ton.
We did not desire 70 offer then what might
have appeared selfish opposition, and
preferred waiting the re-utwe felt to be
inevitable to the project of selling the lease
of the markets for q long period, with
view to withdraw the city currency from
circulation, and re-establish the shattered
credit of the city.
We now confidently claim that tie 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 vast and important result with.
in the reach of those who may be the first in
this instance to practically apply financial
principles, the successful results of which
must be indisputable, especially in this
country, to build up public credit. Public
credit, it can be said, does not exist here;
and it will not exist, on drm basis, until
the owners of moderate resources shall be
freely offered the opportunity Of those in
vestments in public securities that have
heretofore been reserved for few privileged
capitalists.
In France, for example, a powerful bar
rier has been raised against the political
revolutions before so frequent and so ready
there, by frat enabling the esmal proprietors,
even the daily laborer, to become one of
the creditors of the State, thus introducing
democracy into governmental finance; each
thus becomes interested in the maintenance
of public order aud opposed to the violence
OF political intriguers, being satisfied that
peace is the best preservative of his inter.
ests. Then came the method of raising
money by public financial enterprises, like
the Credit Foncier OF France, for ex-
ample.
A number of European cities, such as
Paris, Vienna, Frankfort. Brussels, Mar
seilles, Bordeaux, ROuen, Lisle and others
in France, Germany, Austria, Italy, Bel.
gium, and other countries through this
method obtained the use Of large capital
and developed thereby local resources of
value hitherto unknown, unthougbt of, or
unproductive. Through this system the
Credit Fonciern was enabled to make loans
of an enormous amount at a very low rate
of interest, while the cities we're enabled to
= borrow sums relatively large at an equally
low rate of interest, placing on the market
without trouble circulation of paper that
r holds the best rank.
t 1t is this method which We now propose
+, to be adopted by the city of New Orleans,
> IL needs no experiment TO test it or to gain
1 public confidence for 1t. There need be no
i; hesitation about essaying it: it is bound TO
r be adopted to regulate and re-estsblish
public credit in all countries.
BY adopting this plan the city can easily
, liquldate her old debts, aud at the same
e time raise sufficient amount of money to
n enable her to undertake the works needed
/, to improve her sanitary condition, as well
l. as those OF an ornamental or other public
IS character, which her vast commerce anC
a her growing future will render indisput
= able.
Z To insure the success of our plan, w
i have concluded to offer such advantages a.
n to go somewhat beyond the limits OF tn
strict economy Within which new loan
on long time, should be restrained. In tina
ID we have been guided by the peremptor.
ar necessity OF re'establishiug the credit Of tn
>. city, by enlisting 1mall capitalists in tn
10 plan, even at the risk OF larger cost
| Et,alaa aH
le vautages, the method we offer the city /
10 obtain so desirable an object will be les
!, costly than the plans which have been pre-
u posed to her and which, after all, woul
1T not have succeeded In Ie storing her credit
If The first one suggested was for the cit
90 to issue certificates of eight per cent pc
annum, without fixed date of paymen
Au for the total amount of city currency l
ed | circulation. Taxing S. 900 as Oas
II. tor this issue, the city would have to pa
"a in ten years 81, ,00O, 900 interest, and he
III debt would still be unpaid.
TT Under another plan, If the city were
adopt yearly payments at al interest
Of eight per cent per annum and per gu rte
~ as the only method of reducing her note
10 she would have to pay yearly SoVo y. y
in Give hundred thousand dOllars) OF IN
capital of her debt, and an average OF 500
600 (twO hundred thousand dollars)
ng interest.
oft In both cases the new certificates, base
all on SO large SUN, would be deprecated
soon as issued, just as the old consolidate
bonds are now ut discount OF ~ TO 70 p
ed cent. The credit Of the city would stu
ng far below par, aud 10 remedy this is, to OF
Ia. mind, the chief question at issue.
.oa It is absolutely necessary that TINS amor
00 alons condition ofour fnauces should ceas
er A city like New Orleans, with immense al
ed valuable revenue. aud whose future, I
ad matter what betldes, is certain TO De Pre-
porous, IS bound, morally aud legally 10 z
es everything in her power to put her hnancl
ul credit above aud beyond all possible dou
rn of depreciation. We are satisfied that
~ proper appeal 70 her citizens viii put a So
ui to the deplOrable Condition ct her a1au
mt which each individual regrets, and Whl'
ed compromises the Interests of all.
he The plan proposed by US will OF course co
- tain the guarantees that the interest," oi u
W city aud the subscribers can possibly !
M qulre. The city coancil assisted by delsgat
q VIII De empowered to superlutenu the eA
Ito cution of tue pisa Ia such manner as
insure the utnIest fairness in the manag
We ment.
We do not putforth any pretensions
" superior WisdOmlor disinterestedness.
desire to see put In operation here a cre'
systenlp the striSing advantages OF Whl'
elsewhere we have personal knowledge
WIN the simple practical ana logic
Ia mechanism OF which We are entirely tainllls
~ Aud We are confident that those who, rs
ed are, are familiar with financial operation
a viii not fail " discover in the appicAt'
,Ia Of this new system here the elements OF n'
lie aud property for our enteebled aud
pressed financial world.
m. | Are not our financial interests comm