New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-05-29
THE CITY FINANCES.

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presidents, bondholders and members OF
the City Council. Upon perusing this
report, we find it to consist CT parloI
meeting, at which the secretary Of the
treasury explains the merits of his plan,
and receives for it the sanction Of the
various interests cited in the heading.
The secretary made an exhibit of the
financial condition of the city. Itexposes
a sad state of affairs, and will, we think,
disabuse the popular mind Of the idea so
sedulously cultivated during the election
canvass that the Republican party is ex-
clusively responsible for all the debt and
all the taxes of the State and city:
| ]. There is bonded debt of S22, 24G,-
$50; certified debt of s3O5, 275; float
ing and judgment debt of Sl,469, 227;
making total of S24, O2O, 652.
This is accompanied with a statement
Of the aggregate debt and liabilities Of
the city at the date when the present ad-
ministration came into power on the first
of January, 1875, from which it would ap-
pear that they have been enabled to pay
off the certified debt debt from $500, O2O
down to $685. and to reduce the
floating debt from 81, 929, 5S5 to ST, 49,
227, thus showing that from their petites
economies the administration has managed
topay the truly fortunate holders of these
lower grade debts S72l, 0S3; this within
SIX months. 1t is no part of our province
to scrutinize the legality Of these pay
ments, yet when they precede the declara-
ton that the city can not pay her bonded
debt; when they are accompanied by an
exhibit that there will be deficit of half
a million in the year, the reflection is
irrepressible that it is bette, to stand in
the shoes of a claimant in that buoyant
class of obligations known as floating"
than to stand in the gaiter boots Of Nine.
Rosaie Maenhaut, backed by the law of
1852 and the diplomatic demand of His
Majesty Leopold H., several Dutch syndi-
Gates and the maranatha of, the bond
holders association against all defaulting
States in general and Louisiana in es-
pecial.
We, however, leave this subject for the
investigation of the bondholders, to which
lugubrious category we do not belong
g The more immediate object of the
treasurer's levee was, however, to procure
for the premium bond scheme the indorse-
ment of certain high financial authorities,
and the Picayane placards the entire sue
cess Of his effort. The explanatory dis
course Of the secretary does not, we con-
fess, solve the difficulty Of the situation.
His first proposition that ''the finances of
the city were in desperate condition
was carried without division. The dis
tinction made visible by the city attorney
between gift enterprise and prize lot |
terry was accepted as the gospel of an |
attorneys opinion in favor of rich client |
should always be. The maize comment |
that it was simply "a scheme to decide |
whom among the city bondholders is to be
first paid by lot, followed by the innocent
remark that the precise amount to be paid
in prizes was adjusted to 'diyest the sys.
tenn of its gambling character" is truly
weak effort to deprive the bondholders of
The plea that the whole scheme is not
based on the immoral consideration of
"a gambling transaction and therefore
void as contra bonos mores. At this stage
he explanation makes down into a dia-
ogue and the secretary is subjected to
ross questions by the assembled tinan-
'iers. President Kohn asked if the suit
by the bondholders under the
vet Of the twentythird of February, 1852,
would not affect the plan. The secretary
bounded over this hurdle without touch
ng twig. He thought not, because
measures had already been taken by
be bondholders to inaugurate meeting
bis friday evening to contest this suit"
This lottery logic should have satisfied
very one, and seems to have done SO.
Tut the secretary communicated this con-
lusive and triumphant intelligence that
lie first bond creditors will only get !
lree per cent" Of their interest-which,
y the way, is like to be just that much ! t
lore than some others will get at the end a
life time. The opinion of the attor- t
ey then, given through the medium of a
lie secretary, can not be settled in a | @
anner SO flippant, nor can We discuss S
lis subject with the light or space avail v
Die at present. Suffice it to remark that t
lie secretary has not read or quoted the c
b ole Of the section to which he refers d
his sum of 100000 was to be raised by n
special tax on land and slaves, but the W
tie per cent of the tax in each municipality O
as to be in proportion to its share of the c.
'nsolidated debt. This debt was as b
gned to each of the three municipalities Il
cording to the value Of their respective I! n
sessed values Of real estate. To ascer- n
in, then, how this 100000 would be ii
emised, for it would be necessary to as OF
rtain the relative proportion of the E
operty within each of these old munich A
j districts and apportion the sum among q
EN- accordingly, We fear the secretary OF
s been little precipitate in two propo- til
ions: fl
|. That the Supreme Court has decided III
at where there are membranes on real ! al
tate and slaves. and the latter having
the real estate is only liable o'
a proportion. of