New Orleans Republican., 1873-06-27


To provide for this large unliquidated debt, there
is only the delinquent tax due the general fund
and the amount of receipts from that source will
on the most favorable estimate, come very far
short of ischsrsing these liabilities The receipts
into the treasury account of this fund have
been for the past i've months, 3691 342 q; and the
amount of warrants drawn against the same for the
same period s 1877 ,O36 as. OF this latter amount.
S436,319 p have been retired, 'eaving S13o2o. "a
outstanding. The collection of the current taxes
being, to great extent, inevitably deferred until
near the close of the year, the receipts into the
general fund, from that source. WILL without
doubt. be much greater durin: the le,naiu:n:
seven months than during the past five
Still, from . most careful estimate Of these re-
ceipts due consideration being given to a.! reliable
information and data i'll my possession. l find that
there is 10 reasonable probability that they vii!
equal the amount appropriated at the last session
of the Legislature and for whcl, warrants must
be drawn. The deficit will be, nearly as can be
estimated, about 500, ,O0o-much less. 1t vii! he
seen, than that of previous years. but none the
less bu1iensome on that account. Unless some
method Of liquidation is adopted which will retire
these warrants in the Of the year, this large
overiratt must be aded to the already enormous
total OF outstanding warrants OF the previous
years
It's obvious that this process OF an annually
augmenting excess of expenditures over receipts
must result in large increase over the present
Onerous rate of taxation, or in reputation or
bankruptcy. On the other hand if the excess
be avoided this year the tide will Oe turned, and,
with proper management and economy of apprO-
priatOn, it need not recur in any succeeding year
As long as the general fund is OverdraSn, the
State warrants will be thrown on the market and
bought and sold at dscOunt-the extent Of de
probation being very fair index OF the excess OF
warrants over receipts When the receipts into
that fund equal the drafts against it and warrants
are (as contemplated by law paid by the Treas
urer as soon as issued, speculation in that class of
State paper must cease, to the great cred. OF the
State and to the great relief of the Auditors and
Treasurer's Offices, now hsrassed with many en-.
barrassinS difficulties.
OF the warrants drawn against the general fund,
very large proportion sre never paid to the
original holders. They are sold to spectators and
bv them cashed IS opportunity offers the time Of
payment depending on the vigilance of the broker.
and the pertinacty OF his attendance at the Treas
urers counter 1t thus happens that when money
in paid into the general fund 1t is forthwith
claimed, and Of course paid, to redeem this class
of warrants. and all the receipts are absorbed in
bought from the original owners At . large dis
count.
The original payee who is the mertcrious claim.
ant gets no benefit from the pay Mt IN full.
the State any benefit from the discount in the
market. Nor can parties holding warrants who
are not willing or not able to maintain system
attic surveillance Of the Treasury. hope TO obtain
payment in fuii They will he constantly tOle
stalled by the more visilant broker and forced to
hold their warrants indefinitely, sell them at
discount. This papable injustice results from
system which never contemplated the anomalous
cOnGt ION of affairs in which find ourselves. II
is mv desire to remedy the evil 80 far as pc s=:b.e
or at least. If the original claimants cannot receive
payment in t, for their warrants, I" secure t" the
State The benefit of TIE discount which they
willingly pay 20 the broker.
l shall therefore, ON the fifteenth. day OF July
1873, AID OF the second Tuesday OF each month
thereafter. advertise for proposals for the puT
chase, with warrants, OF the currency then On
hand Oelongin: to the general tUnd; or, in other
words. sell the amount 0: cash Oh hand, at auction
to whoever Will pay the most for it IL warrants
issued subse.l Uent to January l. 1875.
am aware of the nature OF the cri:icism whc,
this course is likely to invite. We shall Ne charged
with specula,ing in our own paper. answer tina.
that is . refinement which the money market
whose relnOrseless rules are subject to- take.
no account Of and that is tar better in any view
OF the case, to buy our own paper. If by so doing
We can advance it to par without injustice to our
creditors, than to allow parties who little or
nothing the credit of the State 70 speculate in
it until it, value and puIchasn. powe. reduced
to nothing.
II the Law does not pressy enjoin this course,
it does not forbid it, II it is objected that the law
does not contemplate this method Of liquidation,
reply that the law did not contemplate the present
condition Of affairs; and if anythn: is to he pre-.
sumed in relation 20 the duties of the fnanci.,
officers Of the State, it is that they viii make the
best possible use Of the assets placed in their
hands whatever may BE the circumstance The
assets of the general fund are not now, nor ~ill
they be durn. the current year. equal 70 its Gu
rent liabilities
Il is my desire to divide the assets equally
anon: the creditors Of that fund. SO ias .ron.
iEUrins the cleGi. Of the State / tIlal it 10 Oh.
vious that this course viii improve it. The prob.
able current receipts will. il expended IN the pu.
chase Of warrants at their market value retire all
nearly all the issue Of the current yea. leaving
.: iss close With little nothing to % added %