New-York tribune., 1874-01-01
LOUISIAN4'S STATE DEBT

REPORT OF An EXAMINING COMMIrTEE-SCHEME FOR
REDUCING II.
A Committee of Examiners appointed to
make into the state debt Of Louisiana
have submitted a report to Gov Kellogg. Ihe grand
total is s5362l5i5 g. The Examiners report that when
the amendment to the Constitution. limiting the state
debt to s5O OOO was passed in 1870 the obligations OF
the state amounted TO nearly si2,0OOooO. They argue
that the liabilities created since 1870, amounting to
A. Os 500 are null and void ab in!o They claim that
100000 Of contingent liabilities, which were Gre
aed prior to the amendment, have nearly or quite all
apsed or become forfetabe by neglect and may be de-
cIared null and void To these the Examiners add yari-
o other sums which they say the State cannot DO held
accountable for making in all $3o6i6o9i, which. de-
ducted from the total gwen above, leaves the debt at
s3 600 OO tho annual of which ia 100000 The
Examiners say that many OF the obligations whcn they
have left in the debt are declared TO be illegal, ana
others we're issued for fraudulent claims In conclusion,
they say: -
which attended and to the deprecia
ton OF property caused by the excessive taxation re-
Guired pay the interest on the debt thus accunu
lated and the consequent immnence OF reputation
the whole debt the market price OF the ponds has
ruled per below those who have since pur
chased che bonds must done with the knowledge
OF these attending circumstances OF public warning.
which made their purchase not unlike that OF goods
offered for sale IN such manner and at
such prices as to raise tho presumption that
the vendors dsposng OF a bad title.
The State cannot nay the debt which will
remain even tho above elminatons. or meet the
annual interest accrung thereon and IL Is manifest
that the pe persstence the effort to do must
sult I'm the inability ami the consequent failure OF the
state TO pay interest part Of the principal
The condition State and the interest Of its cred
tors demand therefore that an equitable pro rata
noron all Its obligations should be thrown on, sui-
rien 10 reduce the debt TO 2O0ooo Waving further
discussion OF this subject as iDe1pedient at present. we
suggest as follows: .,.,, .,
Liabilities be declared null. 100000,
O. That decision OF the courts be obtained as soon
a possible "a to the legality OF all bonds and other ob
cations whose validity Is questionable
That the bonds and otner obligations be reduced In
as equitable proportion possible as 70 bring their
amount down to $l20OO,C0
That there issued for aud rendered to the holders
OF the obligations State bonds having 80 years to
run and bearing per cent interest payable SEMI
annually in exchange for, and equal In amount TO- the
s. That an annual special tax Of four mills on the
dollar OF the value Of all property IN the state
be levied aud apart special fund by the Leglsa-
tre and vote of the people in the nature OF conotltu
tlopal amendment a guarantee FOR the paymons oi
the interest and principal OF the new bonds. .
That the Constitution be further amended 0y limit.
ing the debt t2OOO00O also limiting taxation for all
other State purposes TO half OF per cent and pro-
hibiting the issue at time beyond the
amount of money In the Treasury TO meet them