The New Orleans crescent. [volume] (New Orleans, La.) 1866-1869, 1868-11-24
CITY FINANCES.

While the greater portion Of our properly
holders favor the adoption by the voters OF
the city of the three million ordinance re-
Gently passed by the City Council, we have
heard of few who object to it on the ground
that the tax is unnecessary. These persons
suppose that sufficient amount could be re-
tanned each year from the surplus revenues 10
pay the interest on the debt. Among the OPP
ponents of the ordinance we may class our
contemporaries of the Bee and Picayune, al
though the latter, in its article on Saturday
rather modifes the position taken by 1t the
day before. The opposition seems to
be based on the idea to which we
have referred. Now, if the opponents
of the tax Of one-fourth of one per cent
will bear in mind that the city owes fioat-
ing debt of nearly two million OF dollars
pauaJle on demand, besides the issue OF city
money, and that the city authorities and all
other well informed persons have given over
any hope of Legislative assistance durng the
existence of the present State government
they must concede some of the surplus OF the
revenues for few years to come towards
liquidating this indebtedness, and that posi-
bly, the whole issue of city money may not be
funded promptly, from the fact that until the
ordinance is passed upon by the people and
the bonds printed and ready for issue, SO
much time will elapse that the taxes and
licenses paid into the treasury will reach
half million dollars and possibly more In
this case the floating debt would be two and
half million still. This debt must be pro-
vided for in some way, and that too without
delay.
The interest ON the three million loan is
due on LIST June and LIST December OF each
year, and amounts to say on s2,5OO,oOO
semi-annually s9l $50. As the taxes for 1869,
on which the first levy will be laid are only
due on LIST May, 1870, and cannot be enforced
by law until after LIST July, 1870, 1t Will be
seen that the city has to pay s273, $50 OF in
| terest on these bonds before it realizes any
thing from the tax levied under the ordinance
| This of course will take very considerable
| sum from the surplus of receipts for the first
two years, even if the City Council makes an
early provision for the residue of the floating
| Indebtedness.
Many plans have been suggested for fund
ing the floating Indebtedness of the city, but
they have all been open to some objection
sufficiently strong to deter the council from
acting upon them with any seriousness.
We have plan, however, which we think
would be acceptable to the people, and which
the council has the indubitable right to adopt
without the fear of a conflict with exist
| ing State enactments. 1t is to negotiate a
loan with some of the capitalists of the North
or of Europe in a sufficient amount to pay all
the present debt of the city, payable in ten
years, and by notarial act to set aside and
place in the hands of the agent of the party
taking the loan, the revenues derived from the
wharves and markets, or a sufficiency of the
same to meet the current interest and to pro-
vide a sinking fund for the ultimate extin-
puishment of the debt at maturity.
The adoption of this plan would enable the
city, from its surplus revenues, which we will
presume to increase annually, to go into the
market for the purchase of its bonds, and
with proper economy in the administration OF
the city's affairs, it might be enabled to re-
deem the whole three million loan within ten
| years.