Semi-weekly Louisianian., 1872-01-21

New Orleans, January 1, 1872.
Gentlemen of the Senate and House of Re
!. presentatives of the State of Louisiana
In compliance with my duty, under tn
Constitution, l have the honor to lay be
fore you the following information respect
ing the general condition of affairs in thu
State, with the Recommendation of suci
measures as have deemed of sufficien
Importance to merit your especial con
sideration
! PUBLIC DHBr
The State Auditor persists in publish
ing to the world that our debt is $4I, 1874.
1891, which he makes up by adding tc
the actual debt of the State, which is
S22, 295, 790 5S, an amount which he calls
a contingent debt of sl8 ,s9S, 6s3 80.
This last is indeed contingent. 1t is con-
tingent in that its becoming actual debt is
entirely dependent upon the con-
struction OF certain railroads, for which
the State has agreed to indorse second
mortgage bonds for s12, per mile, the
companies having the right to issue his
first mortgage bonds for the same amount ;
and, second, upon the foolish presump-
ton that these roads, with all their fran
chises, rolling stock, fixtures, trade, etc.,
will not be worth $500 per mile, the
aggregate of the first and second mort
gage bonds. This is no more debt, to
be employed as such at the expense of
our State credit, than is the Endorsement
OF promissory note by an individual
who is secured for the liability be assumes,
by pledge of five-twenty bonds or real
estate, in the proportion of four dollars to
one.
In the first place, there is not the slight
est probability that any of these roads,
except the New Orleans, Mobile and
Texas railroad will be constructed and,
in the second place, if every one of them
should be built, the State would be amply
secured from ever having to pay the in
dorsement, for the reason that the roads
chartered, if constructed, would be worth
four times the amount guaranteed.
This unwise course of the Auditor has
tended to depreciate our securities, and has
given the enemies of reconstruction capt.
tai from which to misrepresent our gov
ernment and to throw discredit upon us
abroad.
In 1861 our debt was $40, 157, ,S73 IL. In
1868, when the present administration
came into power, it was s14.347,O51 OF,
and it is now about S23, ,045, 790 5S. This
increase consists in three million dollars,
employed for the repair of levees; thee mil
lion to take up the floating debt which
had been incurred prior to the Inaugural
ton of the present government; two and
half millions subscribed for stock of the
New Orleans, Mobile and Texas Railroad
Company, and seven hundred and fifty
thousand dollars subsidy granted to the
same company. The present administra-
ton is not properly chargeable with the
three million dollars for floating debt, be-
cause it was mostly, if not entirely, crea-
ted before its incoming. So that the real
increase of the debt by the present govern
ment has been only about six and u half
millions of dollars; and the wisdom of the !
several acts involving the increase is gen.
orally conceded and almost universally ap- |
proved.
The bonded debt on which interest is |
being paid is SIS, 9,S5S, 300, the annual in
terest on which amounts to 81, 403, 800. OF
this debt, $l,357, 900 in State bonds have
been purchased, and are held by certain
trust funds in the treasury, which, if can
celed, would reduce our interest-pay
debt to SIS, sol, 800, and the annual inter-
est to 1,322, 400.
FINANCES.
The condition of our State finances de-
mands your most serious attention. The
report of the State Auditor will show q
deficit for the past year of nearly two mil
ions of dollars. This has been caused by
the ineficiency of tax collectors and the
enormous appropriations made at the last
session of the General Assembly in excess
If the revenue. To meet this deficiency,
'wo things are necessary: First, a reduc-
ion of the minimum of all the expenses
If the government; and, second, vigor-
,us and efficient collection of the revenue
This is practicable, and the best solution
If the problem have been able to devise.
The amount necessary to pay salaries
# officers need not exceed 1920, 900; that
or mileage and per diem of members and
he contingent expenses of the General
need not exceed s125, 900; while
ii other expenses. payable from the gen
raj fund, including those necessary for {
upport of the militia, of public institu-
ions of charitable character, such as
Institutions for the deaf, dumb and blind, ,
he Insane Asylum and the Charity Hos
'ital of New Orleans, and for the rent of ,
'ublic buildings, etc, not exceed $420,- {
so.
The interest on our State debt amounts ,
o 81, 4O3, $40 per annum. 1t requires (
400, 600 to maintain our public scheol
ystem.