New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-06-09
Communicated
The Mayors Financial Policy.
DTTOp REpTrpTTcAN.

His Honor Mayor Flanders was recent,
waited upon by a committee from the Phi
Sheridan Irish Republican Club, who ~.
planned to him the great sufferings entaiIed
upon the city employees in consequence Of
their being compelled to receive appropria.
| ton certificates in lieu of their pay, which
certificates they are obliged to dispose Of to
brokers at the rate of thirty and thirtv-fye
Der cent discount. and to request that bis
honor give the subject his serious consider
| alton, and that he suggest to the Council
some remedy for the evil complained Of
and introduce such a measure as would ma.
terially enhance the value of city promises
to pay.
His honor replied that he was then too
busy to discuss the question, but that he
would attend the next meeting Of the club
and explain to the members thereof the
causes which have operated to reduce ap
preparation certificates to their present low
value. At meeting of the club held on
the sixth instant. his honor prefaeed
his remarks by assuring those present
that he deeply sympathized with
city employees in their dis
tress. but that he was unable to suggest
a measure for their relief; that it would be
suicidal in the city to pay its employees an
additional amount in certificates to cOmpen-
safe them for the discount on their pay, as
such course would only make matters
worse, and increase the embarrassments Of
the city; that if the city stopped issuing
those certificates it would, under the law,
be yet compelled to receive Metropolitan
Police checks in payment for taxes, and
that, in consequence, Metropolitan paper
would be worth ninety or ninety-fve cents
on the dollar. while the city employees would
receive nothing. After proceeding at great
length in the endeavOr to show that the
Legislature was directly responsible for the
present deplOrable condition of the city
finances, he concluded by requesting that.
since he was incapable of doing so himself
some person present suggest a means for re-
lieving the city from its present financial
difficulties. In response to his honor,
would suggest that the most feasible way to
enhance tie value of city paper is to stop at
once and forever the issue of certificates Of
appropriation. But, says the Mayor, if YOU
do so Metropolitan Police checks will run
up to ninety or ninety-tive cents on the dol
lar. Since his honor argues that it is bad
policy to enhance the value of paper receiv-
able for taxes, it is no longer matter of sur
prise that city paper is worth so little.
The police assessment against the city Of
New Orleans for the year ending Septem-
Der 80 prOximo, is 1924, 400 go Now. If the
city ceases to issue appropriation certif-
Gates, there will be no paper other than
Metropolitan receivable for taxes and as
the total amount OF that paper is compare
lively an infinitismal proportion of the sum
annually received by the city in payment
of taxes, licenses, etc. it follows that the
residue would be paid in cash, which could
be used to pay the employees and other cred
itOrs of the city. The issue of certificates
is suicidal to the city finances, for the fol-
lowing reasons, viz: If | receive from the
city an appropriation certificate for 500,
and am of necessity forced to sell it at the
present rate of discount thirty per cent. [
viii get but $40 from the broker. When
John Brown, who owes the city 500 for
license or taxes, concludes to pay the
amount, he goes to broker and buys
certificate of appropriation or a Metro
politan check, for which he pays, perhaps,
SIS, being at the rate OF twenty-five per
cent discount, and then presents the certif-
cate or check at the City Hall in payment
of his dues to the city, aud receives a re-
ceipt in full for 500.
BY this transaction | lose $50, the broker
gains s., John Brown gets a receipt ia full .
for 500, when he really pays but SIS; con .
sequently, he gains $25, and the city, as +
well as myself, loses $50; whereas, if there
were no certificates of appropriation issued,
only Metropolitan paper would be receiva-
bic for taxes and if I sold a hundred dollar
check for ninety-fve cents on the dollar,
would lose but s.. When John Brown
concluded to settle with the city he would
have to pay the broker S97 80, perhaps,
and the city, in giving j. Brown a receipt
in full for 500, would lose but 50 50. I'm
der present arrangements, it loses $50. Ia I
view Of these facts, the Mayor is censurable
for desiring to continue the issue of appro-
priation certificates, and thereby adding
to the cIty's embarrassments. The
question now arises, if no more
certificates of appropriation are issued,
how will the city employees obtain money!
The answer is quite plain. Let the paw
roll be kept in tue City Hall; when the EN-
ploye signs it furnish him or her with GER
lhcate Of the sum due, which certificate
ian be negotiated as appropriation certii-
Gates now are, and at much less discount.
Tor the reason that there will be no paper
IN the market wherewith TO pay taxes, etc,
ana consequently all payments to the city
must be made in cash, and as a matter Of
course, the pay rolls will be eashed after
very little delay, and eventually, will be
paid as soon as they are due.
These suggestions are made with the hone
hat his honor may think of some better
way to get US out of our present financial
difficulties. AS yet he has done nothing
lut find fault with his colleagues, and still .
urther depreciate city paper by delivering
latangues and stump speeches, which be-
ret want of confidence In the government
'ver which ne is called to preside.
METROPOLITAN.