The Opelousas journal. [volume] (Opelousas, La.) 1868-1878, 1874-01-16
Total tax for all purposes (new)

Total tax Tor all purposes (new) .HS
The law, as it now stands, allows the
various parishes to assess a tax for parish
purposes equal to 100 per cent of State
tax, and no more. Most Of the parishes
assess up to the limit of the State tax :;
hence reduction of seven mills State
tax will be equal to total reduction of
fourteen mills taxation, parish and
State.
DEMONSTRATIONS OF THE NEW DEBT.
The new debt thus proposed to be
created will be certain in amount, Of
undoubted legality, and within the will
and ability Of the people to pay, whereas
much of the old debt is believed to be
of uncertain legality and more uncer-
tain equity, entailing rate of taxation
which Is rulnOus to our prospects of
prosperity. The new consolidated bonds,
being guaranteed in the constitution,
and held against q people able and will
ing to pay interest and principal, will
be worth much more intrinsically than
the old Indebtedness for which they
will be exchanged.
Our bonds do not now average more
than fifty cents on the dollar. The pur-
chaser of our six per cent bonds at this
time really receives twelve per cent on
his investment. Off this twelve per
cent, six per cent represents bis actual
outlay, and six per cent is the Insurance.
he receives on his investment or the
pTenaiurx we pay on our discredit.
L TO rsliage the State and to cause our
creditors as little loss as possible, is the
problem before us. Jig Ii bC said, "This
is repudiatiOn, we reply, that however
much we may desire to continue to pay
the interest on ollr present bonded
debt. we cannot do so. We propose to
do all ii our power. We have the inelin-
afien to pay in full, but we lack the
ability 0nr creditors can hold their
bonds if they choose, but we believe
VIC are offering them q far better securi-
ty z@ = s'f8
We have q debt of twenty-for1r mil
lions, worth say twelve millions. IF
this debt be appreciated to par, the
holder realizes an advance of fifty per
cent. Under this scheme our new con-
soils should go to par or nearly so. IF
we continue our. efforts to pay the whole
interest We shall fail, and our bends
will go even lower in value, but If we
can bring our debt within our ability to-
pay we can greatly appreciate it, and
thus not only benefit ourselves, but our
creditors by preventing the latter from
continuing to lose until we are ultimate
~ forced into virtual repudiation,
Rate AND METHOD OF FUNDING. i
1t is suggested by the New Orleans
Chamber of Commerce and by many
private individuals that the debt might
and should be funded at lower rate
than sixty cents, on the dOllar-say at
fifty cents, orssyen forty. But the jus
tice as well as the strength OF our case
lies In the fact that we propose to pay
our creditors oil We can, and ask of
them full and final settlement on that
basis. can see no difference between
forcing them to take less than we can
pay and absolute reputation. If the
only consideration Is what we may force
them to take, we could as justly pro-
pose to them to fund at twenty or
ten cents on the dollar. A careful cal
cnlatiOn, which is as accurate as O mere
estimate can be, shows that we can pay
interest and principal at the rate of |
sixty cents on the dollar, and live and |
prosper under the rate of taxation neces-
saTy to pay that amount; and since we
can do il, think thsre is NO question |
that we should do it. " /
/ ana convinced fr0m consultation |
with all classes of creditors, that per-
feet uniformity in the new consolidated |
bonds is q matter Of great Importance. |
The unfunded debt bears no interest |
at all, the funded debt bears interest at |
various rates. in scheme which pro-
poses to obliterate the whole mass of |
debt and substitute new one, it will |
be utterly impossible to discriminate in |
favor of the various shades OF merit |
which either exist or are alleged to eg- |
lst In favor of one class OF claims oyer
another. Naturally the holders of each |
sy sss fRf 5 i see eauy ensd so@
sort OF priority, and these considerao |
tipno have been strOnRly urged unon |