New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-10-10
THE SCHOOL BOARD.

last night to take into consideration tn
scheme for creating a sinking fund of th
money received for taxes for the support o
the city schools, called out only five mem
bers-Messrs. Dibble, Longstreet, Mercer
Sweet and Boothby. The consequence wa.
an adjournment till Saturday at two
o'clock.
We have already published the resolu
tions presented by General Longstreet on
this subject, with such remarks as suggested
themselves to US on the occasion. The
proposition embraces an acknowledged ex-
pertinent, which presents not only points of
doubtful expediency, as well as advantages
which commend themselves to the favor of
those who are friendly to our school system.
Knowing that General Longstreet has given
the subject his careful attention. we have
been at some pains to obtain an exposition
of his views upon the main features of his
proposition. The resolutions, before being
adopted, are to be amended in some of the
minor details, without however, changing
the main features. In our conversation
with General Longstreet, ne explained the
subject at some length, and to the following
effect. We give as near to his language as
We can recollect:
At the last meeting of the board the reso-
| lutions heretofore published were intro
duced and recommend for adoption. On
that occasion he had explained, as well as
he could in the brief time, that it was
! proper to consume in the incipiency their
importance as the only plan that could be
recommended with the hope of obtaining
relief from the financial embarrassments
| that now beset the school system of New
| Orleans It is simple but comprehensive,
| and as the best test of it's practica bility
| the quotations Of gold and United States
| bonds were quoted at the time when the
| Treasury Department adopted a similar
| system: New York. September %, 1865
| Gold 1879; fve-twenty bonds, issue of 1862 !
| 12l% About three years after the begin
ming of the experiment the quotations were:
New York, October 7, Government
| bought $4,000 600 bonds at ll274. The gov
ernment accepted $4,000, 600 gold at 1l2.74.
The quotations of 1869 show difference of
1875 in favor of gold over bonds, while the
quotations of the seventh instant give the
same figures for each, with probably
fraction Of cent in favor OF gold. So that
the percentage of 1915 in favor of gold has
been practically overcome in the three
years He would venture the opinion that
in three years more the bonds, if not taken
cents.
Now; in order to give more forcible
illustration OF the operation of this system,
let us suppose that our Legislature, at its |
last session, had adopted similar system
with our State finances, and provided that |
all taxes should be paid in currency: that |
this currency should be EXCHANGED for |
State warrants to the highest bidders, and |
that the percentage gained by such ex-
change should constitute sinking fund,
which, in its turn, should be exchanged for |
State bonds to the highest bidders. Say |
that State warrants have fuctuated be-
tween thirty-siX and sixty cents This
would give us an average of forty-eight
cents currency.
Taking three millions currency as an ap-
proximate estimate of the current expenses
of the State, we shall have that amount Of
warrants to be exchanged under the sup
posed action of the Legislature. At forty |
eight cents-the average currency value of 7
warrants-we should take up the three mil
lions of State warrants, and have remain
ing as our sinking fund $l,560,000 Of cur
rency to be exchanged for State bonds.
These bonds are quoted at forty-eight to
ffty-siX cents-say ffty-twO cents. At this
rate our sinking fund would have taken up
all of our floating debt and three millions
of our bonds.
Now, let us compare this copjectural
our financial system.
Assuming $3,O00,O0O to be the amount
levied and collected for the purpose of meet
ing current expenses Tins amount is
drawn in warrants of the State Auditor
upon the Treasurer. The warrants, before
reaching the Treasurer, pass into the hands !
of other parties than those in whose favor
they are drawn, at the rate of forty-eight
cents, realizing $l,440,000 in currency, and
leaving Sl,56O,00O of currency to inure to
the benefit Of those who exercise the privi-
Iege of controlling the State finances, the
State actually paying 81 for the use of
ninetv-siX cents.
| do not say, however, that the figures
above mentioned would have been obtained
under the supposed provisions Of the Legis-
latuIe. On the contrary, | claim that under
such legislation the papers and credit of the
State would have advanced, and that eighty
to ninety cents instead of thirty-eight-the
present quOtatiOn-and that State bonds
would have appreciated also, and our credit
would have been improved il not restored
Now, to return to our school fund, there
are the city schools, the State apportion-
ment for the second and third quarters of
this year, which, after deducting the
amount appropriated for our supply of fuel
for the winter, should leave US about
$25 000 currency. This amount exchanged, |
as We propose to do, will take up like
Gates are exchanged at eighty-fve cents we
shall have tor our sinking fund $3.50.
OF the city school tax there are SI38.000
to be collected. Our State apportionment
for the present quarter we will put at
$4,000. These two sums will give us $1j3,-
900 in currency, with which we shall take
in exchange the same amount in certificates,
aud have left for our sinking fund $22950;
our sinking fund previously made amounts
to $3.50; total sinking fund first of January,
1873, $26,70Q,
I.think have clearly demonstrated that
one Of two results must follow the adop-
ton of my resolutions, viz; My estimates
must, in their practical operations, prove ,
literally true, or our credit must be so i'm
proved as to leave no room for the large
sinking fund indicated by these figures.
One will remove large amount of the loss
% which we are now exposed, while the )
)ther will protect us against that loss and
our credit. In other words, the one
will lead to the same end as the other.
l have heard but one objection offered to
he resolution, which is that the taxpayers
hiding that they can not pay their taxes in
,ur deprecated paper, will not pay any of
he tax. This is confession of weakness
hat | am not prepared TO make. If the
axes are due they should be paid If they
IRE not due We have no right to make con-
ess1ons begging their payment. Besides,
think this concession made on the part
# those who urge it. 1t is not the amount :
II taxes SO much as the use that is made of !
ne funds after they are collected that is so
For taxpayers certainly !
ave good cause of complaint when tbey