New Orleans Republican., 1872-08-28

sentatiOn and surrender hereof, and not
otherwise, street assessment bonds issued
in accordance with section ten, act No. 4S,
approved March 49, 1871, to the face amount
of -- dollars and -- cents, with set
tlement of coupon interest, so that the
same shall begin to run, at the rate Of
seven and three -tenths per cent per annum,
from the date Of -, IS7-,
Administrator.
(For surplus over the multiple of $50
upon the warrant or warrants presented,
a new warrant will be returned to the
holder. as the smallest bond will be issued
for $50J
SEC. .. Be it further ordained, ETC., That
the blank in said warrant for commence
ment Of interest shall be flied with the
date Of the Surveyors certificate.
SEC 3. BE it further ordained, etc, That
this ordinance shall 90 into effect from and
after its passage.
Passed two readings.
Mr.. Shaw presented the following report,
suggesting that as it had taken him a long
time to prepare it, it would probably take
the Council some time to consider it before
pas sing judgment upon it. He therefore
moved that the report be printed
1t was so ordered.
The report was as follows;
DEPARTMENT or PUBLIC ACCOUNTS.
New Orleans, August 20, 1872,
To the City Council of New Orleans:
The city funding bill Act No. 73, .ap-
proved April 26, 1922, provides, in its thir
teenth section, that the city may fund in
new consolidated bonds at rates not less
than ninety cents on the dollar, such un-
bonded debts as might be Occasoned by
the receipt of certificates Of 1871 for reve-
nues proper of 1872.
The occasion, as well as the object of this
legislation, are perhaps sufficiently well
known, but as they require action by the
Council, with a view to regulating and
limiting the issue Of new consolidated
bonds, it is perhaps better to put them on
record to accompany and explain the action
of the Council.
The deficit was originally OccaSiOLed by
the annulling of tve-eighths of one per cent
out of the total assessments made tor eX-
penses of the year 1871, and the refusal of
the school tax This deficit was caused
and represented by an issue OF certificates,
including city appropriations, school and
Metropolitan, for these we're all kept in
full organization and equipment n0twith-
standing the failure of their sources OF rev.
enue.
To keep up its crsdit the city had en-
gagged, or as in the case Of>pOliCe warrants,
WasA9equired to receive these certificates
for taxes, or to pay in turn out OF cash re-
Ceived beyond what was required for IN
terest and sinking funds OF the bonded
debt. This it was plain, would absorb
large portion of the revenues proper raised
for this YEAR and destined for It's current
expenses.
4 contrary course would have paid out of
the revenues of this year first the expenses
of January, leaving the creditors OF Au-
gust past unpaid. This would be detri-
mental to if not destructive Of all credit;
hence it was thought best to let the city
settle its obligations as fast as possible, the
oldest first, in the meantime authorizing 1t
to keep its pledge not to discontinue re-
ceivlng them for taxes.
The total amount of appropriation Certl-
fCates outstanding January |, 1872, was
$l93,SSO: Metropolitan certificates esti-
mated at SlS5, OBJ So; school debts or certi-
ficates estimated at 100000; city certificates
issuabIe in January for December or pre-
yious months, 1871, $65,OO0; Metropolitan
certificates issuable in January for Decem-
Der, estimated at 100000; school certificates
issuable in January for December, esti-
mated at $50, 900; to which may be added
unpaid appropriations January l, 1872, not
certified, Sl20,00O; total $l,053,9ll.
Under the funding act it is plain that the
city can fund all certificates for 1871 pre-
sented for such funding. The amount thus
funded is small SO far only $l9,llL The
holders prefer, evidently, to await the
chance Of payment in turn or to hold them
for payment OF taxes.
1t seems equally plain that the city Is
allowed to fund in consolidated bonds to the
amount Of debts Of 1871, paid in cash out
of the receipts of this year, which, thus far,
amount to $3i3,313
The recent of certificates of 1871 for
revenues proper Of 1872 has been going on
ever since the beginning Of the year, and,
in fact. before, for the licenses we're in some
cases anticipated, and, to large extent,
hurriedly rendered in this kind OF paper
for fear Of depreciation,
This receipt is going On at present, and
will probably till the whole issue IS abb
sorbed. SO far as it has any relation to the
purposes Of this act and to the action OF
the Council Hereunder. That it will all be
taken iu under the act, in one shape or an
other. is evident; and it is impossible to fix
the exact amount the city might fund
without keeping an open account indehn-
itely, which could not have been the inten-
ton of the act No bond can be issued but
bv authority Of the Council. and the COun-
ell must carry out IN good taith all the
provisions Of the act. We are now
the present years certificates, chiefly the
new Orlater ones, to fund to the extent OC-
casiOned as abOve;and the Council is called
upon to estimate or fix the amount accord
ing to its best Judgment, and close the sub
ject by final action.
At the same time it is to be borne in
mind that the funding bill does not con
template that the city shall pay its current
eXpenses-in other words, run itself by
funding. Il must keep within the deficits
ascertained as previously created, and re-
sulting within the meaning of the law.
And it must be considered that a small
proportion of the school debt outstanding
December 81, 1871, has been paid in cash
out of the appOrtiOnment Of June, 1872;
and a proportion of the other outstanding
certificates has been and may be received
on behalf Of old revenues.
1t NAV be answered that the act does au-
thOrize the issue of new consolidated bonds,
drainage series, for excavations of the pres
eut and future years. but it evidently con
Templates their retirement and extinction
by the drainage tax expected to be raised.
Its raising is legislatively intended beyond
doubt.
The advantage of funding is to get rid
Of a present burden; the disadvantage Is
the adding to or increase OF the city debt.
| have already reported to the Council that
the CITY debt tax next year must be 81 81
on the 500 of valuation. and the present
funding proposed will add, however seem
ingly small, yet a permanent increase to
that. This fact affords a reasoning to the
slow or unwilling taxpayer, addressed to
his better Judgment; for a settlement of
the outstanding taxes equal to that of last
year would prevent any more funding.
would have made the funding OF the ire
mems debt unnecessary, and have enabled
the city to make its contracts and pur-
chases at least twenty-five per cent below
the present prices,