The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-09-02
THE PREMIUM BOMBS.

6tsuuluS DOuOS OF new orleans, mllllOu
bonds of $50 each, bearing interest at tn
rate of five per cent per annum, divided int
10000 series, each series to consist of To-
bonds These 10000 series of bonds are +
be redeemed in one hundred successive semi
annual installments, so that at the end of fit,
years the present bonded debt of the city, t,
the extent of twenty millions of dollars, vii
be paid and cancelled.
The bonds to be paid each half year are to b.
designated by the numbers of series which arr
to be determined by lot SO that about 200 series
will be drawn out Of the 10000 each year, rep
resenting 10000 premium bonds Of $40 each.
The drawings will occur each half year. and
the bonds whose numbers are included in
such drawing will be paid in full, with inter-
est at per cent from date. Each semi-annual
drawing of 100000 will designate bonds
bearing 10000 different numbers, and the
holder of each bond will be entitled to one
chance in scheme Of premiums or prizes
amounting to $780, In other words, there
will be semi-annual lottery of TO- 900 chances;
each chance represented by $50 bond,
and designated by the number borne by such
bond, emitting the holder to compete for
about 1900 premiums or prizes amounting to
$780, 600. 1t is proposed to have each half
year one premium Of $4,000, five Of $1,000
each, twenty of $500 each, fifty of 500 each
one hundred of $50 each, and one thousand
of $40 each, total $4,000.
Thus if the holder of the present bonds of
the city to the amount Of 5000, 600 should ex-
change them for the new premium bonds,
taking care so to distribute them that the
same amount should be included in every
drawing, he would at every such drawing of
series find included therein one hundred of
his twenty dollar bonds for which he would
receive in cash $4,000 and be entitled besides
to one ticket for each bond, representing
one hundred chances out of ten thousand
chances for drawing $50, 0O0-each chance
being worth S., or the ten thousandth part
of $4,000, and his one hundred chances
would be worth $500. His first years re-
ceipts would, therefore, be Gin two semi.
annual drawings) equivalent to $5OOO His |
second years receipts would be $4,000 and in
addition one dollar in interest on every Or en-
ium bond drawn by him that year. The
third years receipts would be an increase of
two dollars on each bond drawn, each bond
increasing in nominal value one dollar each
year. The 100000 in city bonds can now
be obtained for less than SIS, 900 in currency.
On the 31st of August the City Council
passed an ordinance to carry this plan into
fleet. 1t provides that the premium bonds
'hall be dated on the LIST of September,
1875, and bear interest from the 18th Of July,
1915. to be signed by the Commissioners of
he Consolidated Debt. Bonds exchanged
or new premium bonds are to bear interest
'nly to the LIST of July, 1876, no allowance
Q be made in the exchange for interest accru-
ng afterwards. A committee of six is pro-
ided to represent the interests of bondhold-
re, with power to appoint an agent. The
ommittee now consists of John G. Gaines,
resident of the Citizens Bank; Thomas A.
dams, President or the Crescent Mutual In i
nrance Company; Aug. BONN, President of !
,e Mechanics and Traders Bank, George :
onas, President of the Canal Bank; j. H I
glesby, President of the Louisiana National c
ank, and Samuel H. Kennedy, President of .
le State National Bank
The city bonds funded for premium bonds @
% not to be destroyed or Cancelled before Il
pril OF next year, but numbered. labeled :.
I'd safely deposited The first drawing of /,
ries is to take place September Is, and the u
n Of n
terwards the drawing of series is to take /, II
ace on the 18Th OF April and October, and =
9 drawing of premiums on the 18th of July tc
d January. Provision is made for the ex- n
ange of all unfunded premium bonds :;
avn or allotted for the bonds of this city. r.
BY this arrangement there will be drawn or CO
otted September Is. or soon after, one hun
ed series, or ten thousand bonds of which - -
o-thirds or more will still be held, unfund- K,
, by the city. None of these hundred as
lies, or ten thousand bonds will enter into tn
y subsequent drawing, but those still held W, wy
the city will be exchanged for old city m
nds to those who make the best offer. II if
the first drawing there are left to the city NJ
emium bonds of the drawn series, amount ~
3 to s15O,0OO, being worth little more
m par, they will command between. $3.50, 900 :,
$4OO, 900 in old bonds. "
The funding scheme, if generally acceded -
by bondholders, will afford temporary re- 49,
tie to the city. The required interest tax az
i be small for several years, and will not u .,
ch million dollars until the beginning of u
'ther century; and it is to be hoped that 20
h changes will occur as to make the re- TO-
nption of the remainder of the city's great 'u'
1t easy to the new generation, who will ""
n have the honor and credit of the city in sn
ir keeping. oe
t may be discovered that our city authori- o.
need legislative assistance before the pre- Je'
I'm bond scheme can be carried into effect. ua
endly legislation on other matters being ~,
entail to the welfare of the city, this con. !.
utes no valid objection to the plan itself.