New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-13
BONDED DEBT CONSOLIDATION.

Unanimity has sometimes this dIsad
vantage: 1t overlooks some defect Of de
tail that impairs its purpose. The unani
nous passage Of the bill funding at
uniform rate of interest all the recognized
obligations of the State showsa commend
able conviction upon the part Of our Stat
Senate that the State and her creditor!
must compromise.
There would not, however, seem tina
due discussion has been had to make this
proposition entirely just and effectual
Let us hope that when communicated tc
the lower house there may be Just enough
consideration Of details to insure to the
Republican executive and Legislature
that the bill achieves entirely all tina: was
agreed on and intended by them.
We VIII mention some points in this
Senate bill which require such delibera.
ton and scrutiny.
The bill is base! on The avowed and
admitted inability of the State to continue
payment of interest and redemption of
principal on her bonded obligations. The
bill unites with these bonded and funded
obligations the floating debt represented
by warrants and certificates Of a specified
class. Il is obvious tina: the funded and
unfunded debt are two things. Let us
deal with them separately. The State is
now making the humiliating avowal that
she Can no longer comply with certain
contracts. To whom is this avowal made?
In good part as to her entire obligations,
TO foreigners and others who in good faith
have paid up to nearly par in specie funds
for these bonds. The appropriation made
in the same bill is intended to make good
a specific proportion Of this funded and
floating debt at the fixed rate OF sixty per
c~enturl. bearing an interest Of seven pc.
cent per annuT.
The exact amount o: the interest bear.
ing liabilities Of the State, as reported
by the commissioners of scrutiny, is
$23, GOO, 600. If this sum be accepted as
the basis of adjustment. then sixty per
cent thereof will produce a sum of
Si3. SOC. 200. The annual interest thereon
at seven per cent would be s96j,O0O. The
exact value OF the taxable property in Lou
isiana was estimated in 1872 at the sum Of
S22S, G6G.G52 60. The tax Of five and a
half mills proposed in this funding bill
would reduce III this capital SI.257.G G6.
This would leave an excess Of 1921, G06
over the amount Of tax levied TO pay the
interest on the State debt AS ascertained
by the commissioners. This excess is then
to be levied to pay the interes. on the |
''outstandins warrants and certificates o.
indebtedness as reported by the Auditor
TO the General Assembly in the year 1874.
Fror: this phrasso!ogy two things re.
suit: |
i. The Legislature has fixed the funded
debt levy very nearly nine-.enths Of a mill
more than is necessary to meet the inter-
est on the funded debt which. as we un-
,leystand il. is alone the ohjec. o. Popular
co~mprcmise.
=. 4 class Q: deb: which may o. may
no. be a proper subject Of such COM.
is included in this provision for
payment. VI wonld prefer 70 see the
Legislature iea! with II subjec. at a time.
Is we understand this thing the State
publishes q process in bankruptcy. There
can be 30 otha: party to the proceeding.
She does 10: ask tie assent Of her n:ed:-
,ors to determine what sac caa do Q.
70 d. When. therefore. the COM
nissioneys 81 deb: scrutiny repor.
hat the bonded debt '.has ruled a.
fifty per cent" wa do not see how the
can 90 promptly raise its
to sixty per cent. The principal
,oint. however. to which we would ask
he attention Of the House OF Eepresen-
Is this: That the bill which Is
ssked for by the people Of Louisiana to
'educe their funded and ~in.ercs: bearing
lebt shall be confined to tia: object. and
nat the recognition and provision for any
,ther class Of obligations sinai! b. pu: in
act,