The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-19

State Of Louisiana as permanent Investments,
| or for the interest of SUGGESTIONS, minors,
orphans and widows!
CITY COUNCIL.
The City Council met in regular session at
noon Yesterday, Hon. G. J. Leeds, Mayor,
presiding, and all the Administrators pres
ent.
Administrator Pllsbury submitted the fol-
lowing:
DEPARTMENT OF FINANCE, |
City Hall, New Orleans, May, 1875.
To the Council Of the City of New Orleans:
submit herewith plan for the liquida-
ton OF the entire debt Of the city, principal
and interest, within period of fifty years
should call this the "Premium Bonded
Fund of the City of New Orleans"
The paper herewith from Mr. D. a. Adler,
and the tables accompanying, will explain
the movement of this fund.
This plan, so successful in the great Euro
pean money centers, merits most careful at
tention, as it has already received marks of
approval from our most intelligent bankers
and fnanciers.
To the bondholder it offers special at
traction, because under its operation his
values would be greatly enhanced, and the
redemption of his bonds, with interest, ulti
mately certain, not only at par, but in many
cases with large premium attached.
To the property holder it offers the great
and much needed relief of reduction at
once of per cent or more on the tax now
levied for interest alone.
The attraction aud value Of the project is
apparent when it is considered that these
plans, 50 successful in Europe, are put forth
to raise large amounts of national loans in
cash, while here it involves no outlay of
money, but simply effects conversion OF
bonds worth only IS to so per cent into
smaller denomination, which would, beyond
doubt, rppidly advance as the number and
amount would constantly diminish.
There seems to be nothing in the plan cal
culated to touch the sensibilities OF the most
fastidious-it is simply redemption of bonds
by ballot with premium attached.
The fact that similar project has received
the sanction of many eminent and conserva-
tive citizens of New York, among them Gen.
J. A. Dix, when Governor precludes the idea
that it is other than system OF sound and
practical finance, well calculated to meet the
emergencies of our present situation.
ED. PnsBURY, Admin. of Finance
Plan for Funding the Bonded Debt Of the City
of New ORIGINALLY ID. III. Adler.
The object of this plan is to convert the
present bonded debt Of the City of New Or
leans, estimated at twenty millions OF dollars,
and bearing an average annual interest OF
about seven and a half per cent into " Pre-
MUM Bonds" redeemable in from one to
fifty years, with five per cent per annua in
terest, in the manner hereinafter set forth.
The system originated with the Roths-
childs, and within the last twenty-five years
has grown into great favor in Earope, where
| - hoc hoar cd hu "a
France, Prussia Austria, Russia, Sweden,
Belgium, Bavaria and Turkey, and by the
corporate authorities of many cities and
towns, bonds to the amount of many millions
of dollars having been issued on this prin-
ciple within brief period. In the city OF
New York, the sIndustrial Exhibition Com
pany," organized for the purpose of erecting
a Palace of Industry on magnificent scale,
was authorized by special act of the Legisla-
ture, the last one passed in April, 1874, to
issue, on this plan, twenty millions of dol
lars in premium bonds of twenty dollars
each, redeemable in from one to fifty years.
The bonds have been iSsued-several draw
ings for redemption of bonds and for divi-
dends or premiums have taken place; and
the enterprise is pronounced a complete sue
cess.
1t is proposed to take up the outstanding
bonds Of the city of New Orleans, estimated
|, SlU, ny StFluS Ava ehOAi
premium Bonds" at par.
The premium bonds 10 be 900, 600 in num-
, Der, Of the denomination of $40 each, divi-
ded into 10000 series of 100 bonds each, the
, number of the first series running from l to
100 inclusive, the numbers of the second
series from 1O1 to 200 inclusive, and SO on,
payable to bearer.
, Certain series Of these premium bonds will
, be paid on the 18th June and 18th December,
.l1Ao %In nl,p
series that shall be redeemed, there will be a
drawing on the 18th March and 18th Septem-
Der. At these drawings 10000 numbers,
+ from l to 10000 inclusive, Representing the
10000 series Of premium bonds issued), will
be put into a wheel, from which will be
> drawn one-halfas many redemption numbers as
: there are series to be redeemed that year, ac-
cording to the third column of the accom-
panying table. At each dra wing the number
7 drawn at previous drawings will, of course,
be left ont. Each of the redemption num-
} bers drawn will represent or indicate a series
, of premium bonds bearing the same number,
for instance: No. 81 will represent series No.
81; No. 356 will represent series $50, etc.
and all the premium bonds which are con.
tanned in the series, thus indicated will be
I paid in full three months after the drawing,
viz: those drawn March 18th, to be paid June
18th, and those drawn September 18th, to be
: paid December 18th, with interest at the rate
, of about five per cent per annum, except
{ those drawn the first year, which shall bear
no interest; the bonds payable the second
year beng valued, principal and interest, at
sci; those payable the third year, at s22;
those payable the fourth year, at s23, and SO
, on, the premium bonds increasing in value at
) the rate of one dollar each year, for interest,
until their fftieth year.
On the 18th of June and 18th of Decembe
three months after the semi annual drawings
of the redemption numbers. drawings for
premiums to the amount of $4,000 each
, drawing will take place, in which only those
$ will participate who hold premium bonds
payable on those days. The premiums to be
! / premium of $1,000. ....... So. 00C
1000 ... 5000
f 90 500 . 10, 0G(
so 100 ... 5,OO(