New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-02-18
THE CITY'S FLOATING AND BONDED
DEBTS,

There is an undoubted feeling of an
tagonlsm between the holders of the city
floating and bonded debts respectively,
growing out of the preference which the
law and custom accord to the latter The
question is often asked: 'Why should a
man who invests his money in city bond
acquire right superior to one who in
vests his money in contract for work or
necessary supplies, or gives his time and
labor, being his capital, to the service of
the city," There is no satisfactory reason
for preference for either. but the bond
holders generally run off with the ready
cash, and the holder Of floating debt must
content himself with what he can get He
finds to his cost, too, that some sort of
paper, worth from sixty to seventy cents
on the dollar, is all he can depend upon,
and that is not realizable before period
OF ninety days after his debt is mature.
The coupon holder, however, is not re-
quired to wait moment. His money
awaits him the day it is due.
Now, there are various plans pending,
under discussion on all sides, for the re-
lief of the city treasury. The majority of
them ignore the imperative necessity that
exists for the prompt collection of taxes.
Thus the city's income is cut off, or great.
ly abriged, which leaves the PROPOSE tons
for relief in the category of an essay to en-
able man to lift himself by pulling at
the straps of his boots. A correspondent,
whose views we present in another
column, proposes to have an act passed to
enable taxpayers to discharge all past dues
in certificates Of floating Indebtedness.
meaning those issued by the Flan-
ders administration. We under
stand there are about $4,000 of
5hese yet out. Before such a measure
'an be adopted without Inconvenience,
t will be necessary to inquire into the con-
lition Of the interest, police, sinking and
school funds, all separate from and indie
pendent Of the general fund, and by some
rule of equity given pref
'rence. We should be cautious about dis
urblng long established rules; perhaps it
would be unwise to authorize the confu-
ION OF the funds, so far as past years are
concerned. For the future. however, we
ould in due time put the city treasury
inder the excellent rule existing in banks
nd business houses-that is to say, es-
ablish one fund for all purposes, and put !
Il the creditors Of the city on the same
ooting. Any legal debt is sacred obli-
alton. and We fail to see any difference
4 degree between honest creditors. But
system antagonistic to this idea has al
aady been established. It is sanctioned
y law and custom. The interas. creditors
ave not yet been subjected to the loss, :
'ouble and anxiety Of waiting an indefi-
lite time for their pay. while the holders c
floating debt, like cells after two or
lree sklnninss, get used to It, and may |
made to bear i. for while longer. 9
We object. however, to converting any t
mt Of the floating debt into gold or any
her bonds. There are bonds enough t
|. already. and i. is Just as easy to make c
e ordinary obligations Of the city sacred q
their present shape as to do it By con- g
rting them into interest bearing bonds. r
le practice Of funding from time to time /
the old one Of putting OF TIL Tomorrow Ii
lat should be done to-day, with good
aspect Of never being able to catch up. S
lere is but one safe rule Of finance, and "
mystery in that. 1t is to carefully col cf
;: all credits and honestly pay all debts. &c
onomy greatly assists, bu: !: can do cl
thing alone. ca