The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-05-19
CITY FINANCES.

The plan of restoring the city credit by
reducing salaries and avoiding useless ex-
| penditures is very good, as a necessary con-
comitant of other schemes; but disconnected
from wider project, it would be as valueless
as a coach wheel separated from the vehicle
| The city credit cannot be repaired as long as
| city bonds sell at sixty cents on the dollar,
and whilst city money is at forty per cent
discount. If the restoration of credit is
desirable, the bonds should be made to
approximate a par value, and provision
should be made for redeeming the city
money. That this can be accomplished by
dismissing few employees and cutting off a
few leaks in the treasury, or even by invest
ing a committee of very honest gentlemen
with dictatorial powers" is simply absurd.
A man may be economical to the extent of
gaining the reputation of a miser, and may
even stint himself in necessary food and
raiment; but if he does not pay his debts, or
make some adequate provision for paying
them, he will have no credit.
The simple question before us is; how can
we pay our debt without imposing burden
some taxes on the people, and without sacri-
fcing or anticipating our future revenues to
too great an extent? We might, perhaps, by
a supreme effort, pay off our Indebtedness
in few years by imposing extraordinary
taxes, but extraordinary taxes would be ruin
GUS to our industry and to our re-nascent
commercial prosperity. We might paya por-
ton by selling our revenues in advance; but
this expedient would be even more disastrous
than the imposition of high taxes at once, for
it would involve still higher taxes in the i'm
mediate future to supply the deficiency caused
by the sacrifice of our resources. What then is
to be done? The plan of Mr.. Bernard Avegno
seems to be the only one that meets the re.
quirements Of the case. 1t avoids equally a
sacrifice or anticipation of the revenues, and
resort to extraordinary taxation. 1t does
not pretend to relieve us of the debt
without effort-in other words, it does
not assume to pay money without
paying it; but it does promise to rid us of our
Indebtedness more cheaply and more easily
than this object can be accomplished in any
other manner. This is plain to any one that
will take the trouble to investigate the plan.
ment Of 500, 600 per month will, in ten years,
amount to S6,6OO,O 900. Now, $4,000 600
the assumed amount of city money-with ten
years interest added, at $50 per cent per an
mum, amounts to Sc ,920, 900. In other words,
Mr.. Avegno proposes q gradual and sure ex-
tinguishment of the debt by monthly INSTALL
ments, at a saving of 1920, 900, instead of a
mere promise to pay at some future time at
the end of which time large sum will have |
been sunk by way of interest, the original |
debt remaining to be provided for in full
1t has been objected to this plan that the |
lottery feature which it embraces, adds to the |
Obligations of the city to the extent of the |
premiums-that is to say $4,000 per month
This is an error. The projectors assume the |
payment of the premiums, in consideration |
of share in the net profits of the sale of |
chances. 1t is again stated that the money |
paid for these chances represents so much |
taxation. 1t is very true that these sales re.
present so much money; but it is not true
that they constitute a tax in the strict mean
ing of that term. A compulsory tax is a real
burden on industry. 1t does not discriminate
between those who are able to pay, and those
who are not; it is always regarded with hos
tility, and requires an expensive machinery
for its collection. A purchase, of any kind,
possesses none of these features 1t depends
On the will of the individual. No compulsion
is exercised on the purchaser. He may invest
his money, or not, as he thinks fit. The re-
suit may be to put so much money into the
city treasury, and to take so much money
from the community; but the process is not
by any means the process of taxation any
more than the sale Of the markets or of the
Tharves, is taxation any more than the sale
If property, or rights, or interests of any
lind, is taxation. We are sure that the more
Mr.. Ayegno's project is examined, the more it
will commend itself to public consideration
md appreciation. 1t is the only plan that
,ffers demonstrably practical method of es-
ape from our difficulhes-an escape which
hall be not specious and transient merely,
,ut actual and permanent. We sincerely
.ope that the council will act on this prop
sition without further delay.