New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-12-28
TIE STATE BONDED DEBT.

/ The committee oppo1nteo Dy SuoG
Hawkins to examine into and report upc
the State debt have, apparently, well pei
formed their very onerous duty. The
report wits published in full in the RzPul
LIcAN on Christmas, and has been gene1
ally received with great favor. Nor
especially is this remark applicable to tn
closing recommendations. The commit
tee find q net amount of valid debt equa
to. say, twenty-three million dollars, afte
excluding doubtful bonds, and assumin
that the Citizens Bank will continue t
protect the State from loss on about fou
and quarter millions for which the ban
is liable, but the State surety. Ii Thu
be added to the admitted debt, abou
which we express no opinion, the tota
will be swelled to twenty-seven million
dollars, which, according to the conclu
sions of the committee, is above th'
ability of the property Of this State tt
pay or provide for the annual interest
The actual ascertained debt of twenty
three million dollars is said by them te
be out of all proportion to the ability te
pay. 3d..
A plan of reduction is limited at, which,
after careful consideration, we deem in
accordance with equity. And we find few
or no dissenters from the recommends
ton. The plan, briefly stated, is to issue
new loan to take up the old one, and SO
retire at least half of the debt. This
scheme, with some notifications, meets
our approval, and will, beyond doubt,
come up during the next month for leeis-
lative action. The matter has already at
tracted the attention and formed the
theme of discussion of several influential
citizens of both political parties, and we
believe the conclusions arrived at are
about as follows:
1. To authorize, by act of the Legisaa-
ture, the issue of say twelve millions Of
dollars, in bonds having forty years to
run, and bearing six per cent interest (the
committee recommends seven).
. 2. To exchange these bonds at the rate
of one new for two old ones, and use
them for no other purpose. Selling one
of the new bonds for money or issuing it
for any purpose except to exchange it for
old ones at the rates prescribed to be MADE
q penal offense.
8. To provide tax to meet the interest
on the new issue and make no provision
for interest on any other class of bonds.
4. 70 restrict the debt by constitutional
to the twelve million dollars
authorized for redemption Of old bonds, as
above set forth, and also to.require notice
to be published in New Orleans and New
York to all holders of the old bonds to
bring them in for exchange within one
year, under penalty of reputation.
Such measure would practically re-
duce the amount to be provided for in
terest nearly one million of dollars per
annum, which is about equal to tax of
four mills in the dollar, and nearly twenty
five per cent of the total State taxation.
We are aware that some very wise men
and able financiers THAT is, they pass for
,uch) recommend higher rate of interest
md distinction between old skies, sevens
md Fights. But as no money is to be
Used in effecting exchanges multiple of
fifty per cent will be found convenient.
Besides. there are now and always have
oeen causes which tended to equalize the
Ialues of all undoubted State securities.
Is it is intended to invoke the sovereign
power of the State to relieve its citizens
rom almost hopeless insolvency, it is no
ime to split hairs. Heretofore the bond
FOLDERS, capitalists who have invested
money at rates varying from thirty to
lightly cents on the dollar, have been paid
heir interest at par rates to the last cent,
While the officers who have given their
ervices, contractors who have furnished
upplies, landlords, and all others Deepen
lent upon the general fund, have suffered |
depreciation during the past six years
quail to about sixty cents on the dollar
nd received no interest money. as
We think there is no more injustice
n offering capitalist half pay than
here is in forcing Judge Abel, Gov
rnor Kellogg. and the State printer to
ell their warrants for half what they
ost them. The State can not stand
nder its burden, and as there is no
over to compel it to make the attempt,
should at once provide means for
utting all creditors on an equitable
asis, as near as possible, and regard the
eneral fund creditor with as much favor
; the claimant against the interest fund.
he vitality of the State is exhausted
very year in the vain attempt to carry
load beyond our strength. Louisiana
like very weakened, consumptive
oung man attempting to carry mans
ad, and receives jeers, instead of honor,
r its pains. The bondholders live
,road, and neither see nor feel the
,rdens Of the people who pay
g taxes. Our public officers, how
er, are with us, and share in the
neral losses. The State needs their
rvices, and they require their pay
omptly and in full to enable them to be
'od officers. If we must make choice, ]
the property of the State can only sus- {
in tax to pay one, either the bond
lder or the officer, why then let our :
arity begin in the right place-at home.
1t there is no need for this. We
n manage to get through by reducing i