The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-03-23

| a secure, permanent and satisfactory basis,
and my opinion is that you will consult your
best interests IN so doing. l am as well con-
WINGED of this as [ am that it is the interest of
the city to meet you in spirit of fair. just,
unreseryed and unconditional good faith
10 come, then, to a proposition in definite
iorm and speaking only for myself, would
| suggest that for all the matured obligations
OF the city, an extension should be given for
forty or tiftyyears. These renewed obligations
for the next five years to bear an interest Of
| three per cent; for the next five years to bear
an interest of four per cent, and thereafter
to bear an interest of five per cent until the
termination of the extension; and that upon
the obligations not ye. matured and bearing
interest, that the creditor surrender two
coupons upon the payment of one it being
understood that they are to be alternate
coupons; and when the obligations not yet
matllred snail reach maturity, that thy be
! funded IN the same manner herein before
suggested to-wit: that they be extended for
forty or fifty years, with three per cent inter
| est for the first i've years and four per cent
| interest tor the next live years, and five per
cent thereafter TIL maturity. In considera-
ton OF winch abatement and extension, the
creditor shall be secured by the special pied ge
of tax sufficient to pay the interest stpu-
lated, to be collected and disbursed by special
commissioners, the fund not to enter into the |
general treasury OF the city, but to be kept |
separate and apart; the whole machinery of |
collection and disbursem, Mt to be similar to |
that now provided for the old consolidated |
loan tax, with this addition, that upon any
failure on the par OF the city authorities or
tbs officers thus specially designated to com
ply with and faithfully carry out the pro
visions OF the act, the creditor shall have the |
right to apply to any court OF competent
jurisdiction pNtOrcf4 nv ~ al
authority, either through the officers so
designated or by commissioners appointed |
by the court to whom appli cation
for such remedey is made the
remedy thus provided to be taken and
deemed to be part OF the contract the con
slderation Of which is the extension and re-
duction OF interest therein stipulated. This
arrangement would not embrace the Wharf
bonds, the revenues of which are pied .el,
and need not embrace the Water Works bonds,
unless the city chose to retain them: but it is
bell yed that in the interest of q good admin
istration 1t would be be.tor to sell the Water
orks, taking IN payment the bonds given
for the purchase, and thus reduce the city
debt by perhaps two millions of dollars
This arrangement if accepted, would re-
duce the city taxation on account of interest
about 500, 600, leaving about 500, 900 or at
most 5000, 600, to be raised by taxation on
|
years.
In five years We shall be better able to pay
four per cent than we are to pay three per
cent now, a1d at the end Of ten years We shall
be better able to pay five per cent than we are
to pay three per cent nov. Under any cir
it is better than paying seven per :
cent, which is less than the average rate of
interest on the city debt.
1t Is a matter OF no consequence when we
pay the principal on the city debt. nor is there
any OBJECT in paying it, or any part Of it. at
principal OF the city debt at present, when it
IS all We can do to pay even half of the inter
eSt, l. not desirable nor even possible and :
ilty years hence when the city will have per- :
maps three times its present population aud
more than three times It's present wealth, the 1
payment Of such a debt would be a matter of
.ritting importance.
As the city from year to year increased in
population aud wealth, the debt would be
relatively diminished, and If care is taken I
hat 1t be not in the meantime increased it t
would at the end of that time be the smallest |
lebt, relatively, OF any city in America. I :
have made this suggestion, Mr.. Chairman, f
because | believed it TO be one which is fair :
and reasonable. 1t woald reduce the rate of L
tlxatlon Oh account Of interest ON the bonded f
lebt to less than that OF any city in the |
nlted States Of equal population and COM t
nerclal resources, tor | ctn say with conf Il
lence that no city OF equal population in the 8
country pays less than 5000, 000 fer interest | o
On us bonded DEBT, and very many pay more. h
It would reduce municipal taxation in this @
'ity below the average OF municipal taxation +
n other cities, which is nearly two per cent,
or With such . reduction OF interest If there d
s TO be any abatement OF excessive burdens q
md abuses IN other matters, q tax of il per $
cent, Or at most Il per cent would amply c
suffice to pay all current city expenses inclu- t
,iye 81 interest. q
This was demonstrated By the able report t
IN the city finances made by Messrs. Schmidt t
Ind Calhoun, about eighteen months ago. If i,
hey could have effected the arrangement fl
which Is here proposed, they would have b I'd
10 difficulty in administering the city finances o
lpon tax OF one and halt per cent. d
But 1t may be objected that all of the city f
reditors would not accept OF this arrange s
nent, and that, therefore, it could not be car r
led into effect. III
It may be true-indeed suppose it is true i,
that some of the creditors would reject the f,
proposition; but that is no argument against s
is being made. Suppose sons of them did n
lot accept it, the city would be in no worse y
than i is row;@ara if thew would
lot accept of this proposition. they. of course, Il
would not accept of one Offering fever ad- "
antages. +,
[ know of no means Of compelling creditors si
0 accept of an adjustment whether advan- c
ageous or not. 1t will be some satisfaction h
0 have done the best that could be done n
nder the circumstances. Those who choose h
o accept the adjustment will do so, aud they NJ
ill probably be great majority OF the credi- d
ors ard if You Can not accomplish all that O
Gu wish, it via be something to haze achieved
part of it.
have abs'ained from any discussion of
he legal rights Of the creditors in this mat
5r for the reason that We are invited to a con- 81
erence, for the purpose of considering the u
Of an adjustment Of the Claims
+ the city creditors, and l am unwilling to q
ssume that N the aggregate my fellog-citi- re
ems are not ready TO 40 all that eau reas- O.
nabiy be expected OF fair and honest men.
5 such they are entitled to all the indul- l.
ence and iiberality consistent with the in