New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-15
OUR FUNDED OBLIGATIONS.

can no longer meet the obligations con
tracted by her legal representatives, is
grave, if not humiliating avowaL But a
any debtor in bankruptcy is obliged t
make distribution Of assets according t.
their strict value, so the State of Louis
lana must ascertain exactly what she cal
do, and neither evade her obligations b.
paying less, nor do injustice to her citl
zens by contracting to pay more than he
ability. The State is driven to this result
and he can not, if her stated inability L
correct, do n better than she can do
She is in honor bound to pay the last cen
that she can; nor can her ability bt
increased or diminished by compromise
or concession. She is not now legislatine
for the brokers. She is avowing. as the
peers of England, ''on her honor what
she can honestly and faithfully do.
For the reasoning with the public cred
itor is this: The ability Of the State &c
make good her funded obligations depends
upon the value of her taxable property.
/. depends upon the activity of her trade.
1t rests upon the residence of wealth. en-
terprise and labor within her limits.
Now, q continued rate Of taxation which
impairs this ability mus: depress the mar
ket value Of these funded obligations and
| not impossibly compel their reputation
from sheer inability TO pay. We address
these remarks to the rate Of valuation
| placed on the credit of the State by the
bills of consolidation pending in the
Legislature. One bill on the subject has
! already passed the Senate and another. o
! synopsis of which we present in another
place. is now pending in the House.
The rate fixed therein is sixty
per cent O! the face value o! the
funded debt. We own 20 a sentiment Of
surprise VIXEN We observed that his ex.
cellency the Governor had suggested this
rate in his annual message. In Difference
to the solicitude Of the taxpayers and as
q convincing evidence that q Republican
government will not c~ountenance oppres-
sion Of labor or capital by the imposition
of illegal obligations, this executive. who
had never been in any manner con.
nected with or responsible for the ex-
isting debt Of Louisiana. appointed OF
his W motion a commission composed
of upright and able citizens. chosen with
ont regard 10 party. and authorized to
scrutinize" and classify the funded obliga-
lions Of the State. They performed this
service. and upon their report is based
the ,eform and reduction Of our funded
debt. This. their report. was accepted.
confirmed and countersigned by the
Chamber Of Commerce. composed OF men
and interests Of e. character kindred to
tina: ST the commission Of debt
investigation and liquidation. IF u pro-
position be sound. it is upon the report
Of these men. or Of others like them.
tina: we can tell VIVA. amount Of debt the
Of Louisiana gan permanently carry.
II We take the estimate of this commission.
we find that. deducting q class Of excep- |
tionai lab ~ilities from the grand apparent !
total! :he.e will remain 'Hs23,0OO,O 900 Of
obligations. bearing IN an |
aua! interest Of abou: 81. 500, 900. The
Atty Of many of the obligations, which
make up these s23. coo. 600, is denied in
he courts" With a ,ecital of certain
'auses. alleged to exist, the commission
states that '1hs market price Of the
ponds has rated fifty pc: cent below
and uponthis statement Of debt and
.ssets bases this opinions
This State can not pay the debt which
vill remain even after the above elimina.
ion. or meet the annual interest accru-
nc thereon. And it is manifest that the
ce in the effort to do 50 must soon
esu!t in the inability and consequent fail
ire of the State to pay the interest Or any
of the principal.
Here Is o candid and authentic avowal.
t must be taken as a part of the report
nd when we cut down the funded obliga.
ions Of the State under their authority,
would be illogical to disregard their
Of the exact ability Of the State.
hose statements must be taken together.
hey can not be separated unless there
e some subsequent aud superior author
y which shall supersede that Of this ]
onest and deliberate commission. devot. :
,g months to the consideration of this {
cry question Of ability. We have I
eer no other authority cited, and =
to rest OF their declared debt and
.xable values. Let us substantiate the =
port of the commission by suggesting ',
fact which no doubt entered into the y
Of their opinion. 1t il this: =
his interest fund of 81, 10000 on these S
Inded obligations is by no means the
lily item Of this character resting upon f
people and property Of Louisiana. C
he city of New Orleans is known to pay o
7e-eighths of the xnense Of our State d
II: and government, besides its own. e
ow i. appears from The report 0: the ii
ago. published in yesterdays REpUB. t.
CAN. that the bonded debt OF New Or t
ans was on the thirty-frst of December, 1
rs. SCI, 3S9, sec "a, and that the annual Il
te.cst thereon will be 81, 3S7,3i1 a
Here. then, will be two capital sums Of.
ate. %, 900. 900 on ii
2l,S89 800 "a m
s---- .
........ s a, 1853, so "A
sting IN greater part upon Il portion II
the people and property Of Louisiana. u
, meet the annual interest on these sums lie