New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1868-06-26
TIE STATE DEBT

NJ VIC DACAhluS Ouh VI euS Wa 80
total bonded debt of the State OF Louisi-
ana, exclusive of $4,83s, 1888, for which
amount the State had become liable for
property banks, was only $4,054,2OO'
Since then, in 1866, an additional debt was
created, amounting to So, 2s1 600, 50, 1877 900
of which was to defray the expenses of
building levees, and the remainder, $780,
600, was to meet matured coupons fer
which no other provision had been made.
This increased the nominal bonded debt to
1886, 500, which includes, however, ST.
1871 State bonds held as trust funds OF
the State. and reduces the net bonded in
debtedness to Se,144,3O0 A floating debt
in the shape of State warrants,
certificates Of Indebtedness, or State
treasury notes, has accumulated since 1866,
amounting to sl,293, 1867, which added to
the net amount of bonds as above makes
an actual aggregate debt Of 81 ABS, 1877,
The floating debt of the State bears no
interest. The rate of interest on the
bonded debt will probably average seven
per cent, making the amount necessary to
be raised annually to meet the coupons
about s4SO,700. Most of the bonds of the
State have yet about twenty-five years to
run, $50, 900 are due in 1869, $4,000 in
1870, and $4,000 in 1872. None of the
other bonds mature until 1886.
The assessed valuation of the taxable
property Of the State according to the
last returns made to the auditor is
s25l 100000, including personal property
and real estate. The actual value of
taxable property is unquestionably largely
in excess of this amount, as very little
property is assessed at its full value. But
tax of one per cent on this nominal yalu-
alton would realize S2,510,O00 a year,
which, after paying the matured coupons,
would leave surplus of more than two
millions to apply to the payment of cur
rent expenses and the extinguishment of
the floating debt. Long before the ma
turity of any considerable portion of the
bonded debt the value of taxable property
may be expected to greatly increase. An
increase of one hundred per cent in ten
years would not be an extravagant esti-
mate.
When we compare the debt of the State
with its resources we find 1t to be really
very small indeed And as the latter in-
crease from time to time, as they most
surely will under the operations of the -e-
construction policy, the good credit of the
State will arrest the attention ofcapitalists
who can not4ail to find its bonds safe and
profitable investment.
It may be deemed necessary by the first
Legislature, which is now about to be call
ed together, to issue another million of
bonds to pay the floating debt. But with
a stable State government, recognized by
Congress and elected by the legal voters of
the State, Louisiana can carry debt four
times as great as she will have even then,
without being compelled to resort to bur
densome taxation. Many of the older
States have a much greater debt, with in
ferior resources; but their credit is well
maintained by the promptness with which
they provide for maturing obligations.
This State should not suffer for want of
credit. The people are certainly able to
pay their taxes, and are usually quite will
ing to do so. 1t will be the highest duty
Of the Legislature to enact laws providing
for the prompt payment of all matured
obligations; and in order to do this with
certainty assessors and collectors of taxes
should be held to a strict accountability
for the faithful discharge of their duties.
Several descriptions of State securities
have already begun to advance in the mar
ket, and there is no reason why every bond
OF obligation now outstanding should not
command a fair price. The main cause Of
depreciation heretofore has beeL the uncer-
tainty attending the status of the several
civil governments instituted here since the
breaking out of the war. But now we are
TO have permanent, legal, stable govern
ment. Aud so long as the Republicans
are in majority there is no doubt that the
credit of the State will be properly cared
for, and all its obligations be paid at ma
turity.