The Ouachita telegraph. [volume] (Monroe, La.) 1865-1889, 1873-10-31
LOUIsIANA's DEBT.
(Fro,n tho Chicago Times. Isth. !

81.
lFrom the Chicago Times, lsth.l
There are several reasons why this
exhibit may not prove to be perfectly
satisfactory to investors. In the Arst
place, tho debt is a large one los; such a
State us Louisiana, and upward al 3 per
cent. is Il pretty steep rate Of taxation
for State purposes, II the assessed valu-
alton is anywhere within gunshot of
tho true valuation. In the next place.
the credit of State can hardly be- rated
AL when more than quarter of It's
admitted debt is enjoined. In tha third
place, 1t Is not true, as Mr.. kellogg
asserts through the Ffnancier, that tho
official statement sscomp1ises the entire
present debt of the State." There Is one
form OF indebtedness, and very ques-
tionable one, which Ia not comprisc<i
In tho statement at all. For a conside-
rable time the State government has
contrtved to keep up the interest on
the bonded debt after q fashion by
issuing warrants against the treasury
instead OF paying cash for current ex.
penditures. The Kellogg governments
has not seen tit to inform the public IA
to the amount of these warrants out
standing, but 1t Is understood TO he
somewhere between %, ,O0O, 600 and e2O.-
COZ, GOO; so that The actual debt OF the
State may be anywhere feom "a. .O0O. 600
to $42, ,OOO, 900. So long as the emount
remains unknown IL can hardly be OK
pected that cautious investors win tread
on each others heels In their hurry to
get hold of Louisiana bonds.
! And 1t may bo mentioned as another
reason why capitalists will not engage
IN u scramble for these securities. that
the state of Louisiana Is engaged lin tho
rather unseemly business Of shaving its
own paper. Whenever n quantity of
currency accumulates in tho treasury
beyond what is absolutely necessary in
order to pay interest and the salaries, of
the higher officials, tho Auditor puts
up inc SAID currency at auction, knocks
1t off to the highest bidder and takes
his pay In warrants. Thus the KELLOGG
government makes State warrants tho
standard of value In Louisiana, and
quotes greenbncks and bank notes at so
much premium above tho currency Of
the Pelican realm. 1t WAS not long
ago that the Auditor gave notice Of ono
OF these interesting auction sales OF ssthe
cash on hand, or in the course of being
turned into tho State treasury to tho
credit OF the general fund, from collec-
tlons Of current taxes payable in 1873"
payment to be mnde in warrants issued
Nuii"S VIC pieseHt year. Inc beauty
OF tho system IS that when the currency
has bcen "sold" 1t becomes necessary to
issue now warrants to meet current OK
penditures, the Same to be brought back
into the treasury by selling more cur
rency, and so on nd inflnitum. This ia
a very neat way, though not exactly an
original one, OF turning an honest
penny for tho State (or some ono else),
but it is not exactly calculated to In.
spire confidence In tho breasts OF people
who have cash to invest in bonds. Tho
mere fiict Of issuing such warrants indi.
Gates that tho State was In rather a bad
way financially, and tho process OF re.
dccming them by selling currency for
them at auction has Il disngreeablc
flavor Of rcpudfation about it.