New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-01-07

solution, and it must be dealt with. In
| my Judgment, it can be best solved by
| the passage of q we'll digested funding
| bill, accompanied By appropriate constitu.
| tional amendments. The main features Of
| the bill should be the conversion of the
| whole bonded and floating debt of the State
| into consolidated bonds. having forty years
| to run, and bearing a uniform rate of inter
est. The exchange to be made at the
| rate of sixty cents in consolidated bonds
| for each dollar OF bonds, warrants and GER
| tiicates of indebtedness now outstanding.
The constitutional amendment should
| provide that as soon as the debt is reduced
| below $4,000, 600 it shall remain limited at
| the lowest point attained until reduced to
| Sl5,00O,000 beyond which point it shall
| never be increased-the consolidated bonds
| to b64ecognized in the constitution and the
| rate of taxation for all purposes limited to
| fourteen ano half withstand provision
| also by constitutional amendment for the
| pay :nent of the interest on tAe consolidated
| bonds as it accrues without further appro-
| priatioh from the Legislature. Consultation
| with many large holders OF our bonds and
| with experienced tinanciers has confirmed
| me in the opinion that with such a funding
| bill and with constitutional amendment
of the character indicated our whole debt
| can be readily funded at the rate mentioned
WHAT WOULD BE GAINED.
The substantial results OF a successful
| execution Of this policy will be best illus
trated by a reference to official figures.
The total debt of the State, funded and
unfnnded, as appears by the official records
in the Auditors office, is as follows:
Bonds outstanding January l, 1874 .s22 AZ 800 90
Auditors warrants iold)..:..... 1881, lS5 Is
Auditors warrants (uew. 1879, jan
uary J, 1874 about. 1855 a.
Certificates of indebtedness told).... 5i,78s AZ
Total. 1924 2s3 1856 90
The present rate OF taxation for all
purposes is twer ty-0ne and a half mills.
The existing debt of 1874 1856, funded
at sixty cents on the dollar. would leave
us with a new debt of $l4 57O,33l SO.
II any portion of the bonds now be-
ing tested in the courts are declared
illegal. the new debt will be con-
siderab.y less than this latter sum. The
interest tax at present 10 eleven and a half
mills; the rate necessary to pay all the in
terest on the new debt represented by con-
solidated bonds is five and half mills. 1t
should be remembered, also, that this esti
mate is based upon our present greatly re-
duced assessment. Ii five and a half mills
on our present low assessment will pay
the interest on the consolidated debt.
it is apparent that as soon as the relief
brought by the Reduction of our burdens
begins to be felt and property appreciates,
as 1t necessarily must, a less rate than five
and half mills will pay the interest on
the consolidated bonds. The interest tax
may then be still further reduced, or, remain
ing at five and a half mills, the surplus may
be applied TO the redemption of cons0ls
until the whole debt is extinguished.
A statement of our condition now ana
after funding the debt and Incorporating in
the constitution the provision herein recon-
mended would show the following compar.
alive results:
Mills.