The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-07-12
GOOD MONEY FOR FUTURE CITY TAXES

The following letter is from an old and well
known merchant of this city. His review of
the present deplorable condition of the city
finances is clear and indisputable. Few will
deny that he points out the true cause of the
ruinous depreciation of the city currency; and
the remedy which he recommends for restor-
ing the credit and rectifying the finances of
the city, is one which has doubtless occurred
to thousands
Orleans:
Gennernen-Allow me to offer a suggestion or
Two upon the present condition of the city
finances, and more particularly with regard to the
redemption Of the city money.
II seems to me that very prevalent error
exists 10 the true nature Of the evil under which
the city has so long suffered; aud, as matter of
course. 1t is no cause of wonder il the remedies
which have been applied for its relief have been
altogether unavailing.
The idea generally entertained seems to be that
the city issues, somehow or other, have fallen be-
low their true value, and all that is necessary to
restore them is TO invent and apply some kind Of
legislation adequate TO that object, bat of which
no one has any clear perception. Hence the sew
eral schemes OF selling city property, funding the
notes upon interest and know not what others,
have one after another proved abOrtive.
Now, with due submission, | think the evil lies
much deeper than appears upon the surface; and,
indeed, that what we see is not the evil ITSELF but
only the effect of cause which is not so palpa.
bic TO common observation. Ii is like an ulcer
upon the human body, which indicates a serious
arrangement within, and the skillful physician
will not be so much occupied with applying rene.
dies to the ulcer on the surface, in ascertaning
and healing Its hidden cause, being well aware
that If the latter be removed, the former will get
well of ITSELF
Just so is it with the " city notes" Their de.
preciated condition is only the evidence upon
4haC nNfa rfa
which exists beneath, and your duty requires that
as wise hnsncers you shall ascertain the cause of
that arrangement and apply the remedy.
This cause, am confident, will be found in the
absolutely PROSTATE condition of the credit of
the city IN its corporate character.
Dlsgracetul as II may appear, | do not think the
city Of New Orleans, with its immense resources
could at this time borrow upon its faith for six
months htty thousand dollars. The faint of an
entire indifference to the fulhment of its most
sacred obligations rests upon 1t. No one desires
10 accept Its promises, because no one has any
confidence in their fulfllment. Why, at this very
moment the interest due upon the city bonds for
the past year, to the extent Of, perhaps, one
hundred and fifty thousand dollars, remains IN.
paid and, by the way, gentlemen, it may be
well for you 10 look at the law of the State with
regard to this very interest; il may be that you
will find that all other legislation on the part OF
the council is Illegal and void, until this interest
is provided for.
Under such circumstances. it will not be sur.
prising that any effort which falls short of restor.
ing this lost credit, shall prove unavaiing for "a
long a. this condition lasts you will find yourselves
continually thwarted by financial law which is
as inexorable and certain in its operations as the
law which governs the planets and keeps them in
their orbits.
The question then for you to consider, is how
shall this credit be restored?
To continue in your present course of receiving
"cty notes. for city dues, and paying them out
to the employees Of the city, when these poor
people must dispose Of them at thirty or forty per
cent. discount to procure bread for their families:
or to issue certificates of Indebtedness, payable
nobody knows when or how-or to rely upon the
fOrbearance of those who hold your bonds for an
Indefinite period, will not answer. Something
more definite, more efficient must be devised.
What shall it be?
/ know not, gentlemen, what suggestions have
occurred TO your own minds, but after much re-
lection, am perfectly convinced that you must
procure the means of meeting your engagements
IN United States currency. And as | am sure you
cannot, under the present system, borrow it, your
only resource is to procure the passage of an or
1inance authorizing the receipt of city money for
all taxes previous to the present year, but re. |
curing that all for this year shall be paid in
United States currency.
You, of course, know how much of the taxes |
Tor this year are available, it may be less, much |
ess than may be required, but by this course you |
will have made move in the right direction, your
,redlt thus restored will enable you to borrow for
FOUR present necessities aud at any rate, you will
20 able TO obtain from your creditors such indul.
renee as the nature Of the case will demand.
Besides If the amount of back taxes will not be
efficient for the redemption of the entire volume
II " city money" am confident that the holders
# it will be very willing to receive interest bear.
ng certificates, payable, say within five years.
am aware that the measure propose NAV at
rst blush seem harsh, but am sure proper and
lose reflection will satisfy you aud all concerned,
hat 1t is the best which, under the circumstances,
an be adopted.
In conclusion, allow me to say that the plan |
ropose is precisely that adopted by the State I'M
er the order of Gen. Hancock, with the most sat-
fsctorily results. MERcAToR.