New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-11-02
Plan to Scale the City Debt by the Issue
of New Bonds.

OF New Bonds.
EDITOR REPUBLICAN:
The accompanying figures show an indebt-
edness OF ~, ,245, ,978; by scaling this amount
at the average price the different class
of bonds have sold for during the year 1873,
the present Indebtedness of the city would
be reduced in the sum of 50, AT ,e8l AZ, thus
leaving the amount Of $l3,St7 1896 50 to be
represented by new issue of one series OF
bonds bearing six per cent interest.
The present amount of interest now paid
al3 &c. By adopting this plan the city
would save annually in interest $5oO. .234 II.
The amount actually to be paid on new
bonds would be $S29, ,O79 Is, instead of as at
present, the sum of 81, ,329,3l3 36.
A Till should be prepared embodying
lature, including contract and provision,
which shall be printed ON the bond, pro-
hibiting the city from issuing any bond
whatever cay until one-half this amount
shall have been paid. With aprovision that
tax shall be assessed to provide sinking
A~u~ W. ASbA Q o0AN UOASSS bdAO VdA uOe lVp w
into operation until the expiration of ten
years after the date of the bonds, thus
giving the property owners a breathing
spell SO far as that tax is concerned.
And further, chat the percentage OF the
city tax be restricted to the lowest possible
point, say to one and half to two per cent;
that no certificates, warrants or other evi-
dences Of indebtedness of any kind what
soever shall be issued unless the money is
actually in che treasury to pay the same,
and that any member of the Coun Gil or
other officer Of che city Who shall vote for.
or othersise violate any Of tho provisions
Of the act shall forfeis his rights TO his
Office and be subjected to fine, say of $4,000.
and in case any attempt should be made
by The Council OF other parties to violate
the said contract, that any bondholder or
taxpayer shall have q right 60 commence
suit by injunction OF otherwise in any court
of oonpeteat jurisdiction against said par.
ties
It must be patent to every taxpayer, as
we'll a. te the Administrators. that, al
though shey may struggle along, and pay
the interest on the city debt this year, they
can not do it the next two or three years in
the future. Property is constantly depre-
ciating, which necessarily reduces the as
sessment roll; people are growing poorer
and becoming less able to pay their taxes.
1t is therefore evident that the city has got
to stop, sooner or later. Would it not be
wisdom foE the present Board of Admins
traitors to meet the question at once by
maturing plan OF scaling the debt
upon the basis of the foregoing figures,
and when SO perfected to issue circular to
the bondholders stating frankly the con-
dition of the city and its future inability to
pay interest on i:s large debte; that by ac-
cepting reduction by this scaling process
their new bonds would be appreciated to
nearly if not quite as much as the loss they
would have to submit to, while property
would Immediately appreciate fully twenty.
five per eents
These suggestions are thrown out with
a view Of calling the attention of the city
Administrators as well as the taxpayers to
subject which l deem to be of vital i'm
portance to the future welfare of the city
My attention has just been called to the re-
port of the Administrator of Assessments
in which he shows shrinkage of nearly
$5,000 900 on the rolls for this year. We
have nothing in the future to hope for but
a similar annual reduction for years to
come. unless prompt action be had in the