The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-19
THE O1TY's TROUBLE.


Few facts are moro apparent or more def
nitely ascertained than the inability of this
city to pay the necessary expenses of her gov
eminent and at the same time to pay mil
lion and half annually in interest on her
bonded debt of twenty-five and one-fourth
millions To say nothing of bonds that ma
thousand dollars each year, the debt is too
large to be carried, for the reason that the
taxable property Of the city will not bear the
required interest tax.
This taxable property is assessed at a val
uation of S119, 298, 504, or in round figures
one hundred and twenty millions, levy Of
an interest tax Of one and one fourth of one
per cent being required to produce the in
terest fund. If by economy and legislative
help the current expenses of the city can be
dollars, the two requisite taxes would be two
and one fourth per cent, producing, if all col
lected, 50, 100000 The estimate Of the cur
rent year budget of Jan. u, 1879 amounts to
ST. O75, 9l9, Of which 81 ,305, 566 is for current
expenses, not including police s59o,0OO,
schools s29S, 246, park s149,123 drainage
liabilities $133, 1873, wharf debt S121, 100, bank
loan $4,000, or any other interest on the
city debt set down at 81, 325011, or election
expenses of 1874, $4,000.
The property assessed in the aggregate,
about s12O, 900, 600, is not worth that amount.
Estimated at the prices which real estate has
brought at auction for the past eighteen
months as compared with the assessment, it
would appear that the latter is too high by
thirty or forty per cent. Estimated at the
prices at which owners rate their property the
assessment is altogether too high. But if
valued according to average net income from
rents over and above taxes, insurance and re-
pairs of buildings, the real estate of New Or
leans would show an available value less than
one-haf the amount for which it is put down
in the books of the City Hall.
The States assessment on city property is
likewise too large, SO that when on ners pay
both State and city taxes the amount is about
equivalent to double tax on the real value.
As taxable basis New Orleans property can
not now bear any such imposition. The taxes
are assessed, charged up against the property
bearing judgments, but they are not paid.
City property owes about ten millions of State
and city taxes more than half due twelve
months ago. Unless property advances these
past due and exigible taxes cannot be paid.
Until taxes are paid the interest on the city's
debt can not be paid.
This is an unpleasant subject to dwell
upon, but the first thing to do with trouble
of any kind is to know its nature and extent.
The city cannot pay the interest on her debt
She must defer the payment Of interest at
least in part, whether her creditors are will
ing to or not. If the consent Of the General
Assembly is necessary to legal postpone
meet of payment of interest, that consent
must be obtained, otherwise the postpone
ment will take place by necessity. 1t is bet
ter that it should be legal and formal with
due notice to all creditors. 1t is best for all
holders of bonds to know the full and exact
nature of the difficulty.
Changes are to be hopefully looked for. A
removal Of needless and unjust evils and a
renewal of prosperity will, Of course, restore
property to its old value, equal to its present
With improved basis of taxa
ton will come prompt and full payment of
taxes and renewed ability to pay interest.
Let the business of the city be doubled, and
the interest tax now required would be bear
able load. At present it is not wise to strain
at impossibilities.