The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-03-23
CITY FINANCES.
How to Relieve Our Treasury.
Speech Of Hon. j. \. Lea Before
tie Meeting Of Rondnoiders.

The following interesting speech by Judge
Lea contains, 50 far as we at present can see
: one OF the most feasible and at the same time
o certain modes Of relieving the municipal cor
$ poration from the heavy burden Of debt now
resting upon it. The speech was delivered
, before joint meeting Of bondholders and the
city Administrators Saturday last, and there
elected much favorable comment:
NJ. Gairma1. have been called to this
conference by hiS HonOr the Mayor OF The
city, in compliance WITH resolution of the
City Council, lnsructing the finance commit
tee to confer with the bondholders and cred
itors Of the city, in reference 10 the adjust
ment got lis debt, upon some permanent
basis, which VIII leave ltfree from the odum OF
future delinquency, and restore its credit.
This is step in the right direction, made in
the right manner, and would seem to
manifest disposition on the part of the
city to adjust, in fair and reasonable
terms, the claims Of the bondhold-
ers against tbs corporation. knowing
that this resolution had been passed, a1d
while awaiting some proposition in further
ance OF its purpose, it was a matter Of
lone surprise TO many of the bondholders
SO find that a bill had been introduced in the
tate Legislature without previous conference
with the creditors, embodying the PROPOSE
ton to practically repudiate the entire debt
of the city upon an assignment of assets
which would have realized but q small per
centage on the dollar. This proposed act
failed to become a law solely for want Of time,
tor 1t passed through two readings in the
Lower House without opposition. | do not
say that this project of 3 bill emanated from
the CITY Council, but it was generally believed
(perhaps enormously tina. it was presented
with their assent and approval. 1t is no.
necessary to discuss the nll rits, or rather the
dement's, OF this bill, as our invitation to this
conference would seem 10 indicate that the
| project has been abandoned il indeed i was
ever entertained by the Council
| 1t may DE sufficient, however, to remark
that the features of the bill were altogether
| lmpraclcabIe. 1t was not such as the most
liberal and indUlgent creditor could have ac-
cepted, and, indeed, proposed e transfer
| OF assets, the revenues of which had been
| legally pledged, and the surrender of public
places and property which had been set aside
to public use, and could not legally have
been reduced to private ownership. The
result OF the enactment of such bill would
have been food OF litigation and a shower of
lnJunchcns, without any relief to the city.
Now, the object which it is proposed to at
tain by this conference is such AN adjustment
OF the city debt as will relieve the city from
excessive taxation on the oae haad, and will |
secure to the bondhollers such income upon |
their claims as the city can pay without nm
reasonable taxation. There is no disposition |
on tine part Of the people of this city to re-
pudlate either the whole or any part OF a debt |
which is acknowledged to be honestly due
Bat the interest on that debt involves |
when taken IN connection with other oppres-
- tvt,pf .fGA
al extent as to affect iniuriously the general !
interests OF the city. Now, how can these
objects be effected:
hold in my hani statement Of the city |
debt, made within the year, aud though at |
the present moment critical accuracy would |
require some Slight change OF the figures,
1t is sufficient approximation to a correc. t
statement to serve as basis OF calculation. |
1t shows IN general terms that the bonded |
debt Of the city is about S2l 51G, 900, ipclud-
ing Wharf and Water-W orks bonds. | have no
means OF determining what is the amount OF
the floating debt, but deem it safe to assume
that the entire debt OF the city, inclusive OF
the tloating debt, does not exceed S23, 900 900, |
If, indeed, 1t reaches this amount The ag-
gate interest uooa this debt is 81, 1922 1856 |
The Wharf bonds, for the payment OF the
principal of which the revenues on wlaryes
stand pledged, amount to S724,000, aud |
the Water Works bonds amount 10 about ST.
400. 600
The amount of revenue raised by taxation
applicable to the payment OF interest is
5l,2I5, 6Oi. This would Involve tax slightly |
IN excess OF one per cent on real estate for
he payment Of interest. How is the city to
be relieved iron at least portion OF this tax
1t IS to be remarked that al the burdens Of
excessive taxation are not to be traced to the
just and legal demands Of the bondholders,
nor would 1t be either just or reasonable to
make all your contemplated reforms at the
exclusive expense OF this class of citizens
This would be confscation and not "a
adjustment"
You are paying a Park tax without any
prospect OF having a park. You are paying
nearly twice as much for your police as is
paid by either Cincinnati, ST. Louis or Chi
cago, all cities larger than New Orleans You
are throwing hundreds of thousands OF dol
lars into the lake to support a so-caled drain
age corporation, and your public school sys-
ten IS established Oh a footing needes,ly
expensive. Now, it is neither Just nor rea-
s0nable that all these abuses should be paid
fer by the bondhClders. If you could reform
these abuses Tor the existence of which the
City Council is not to bl1me, you would have
40 difficulty in paying the interest ON your
bonds.
What is wanted by the city is relief from
taxation. What is w,nted by tie creditor is
security for the performance Of what you now
promise, analto meet these two demands is,
IS understand it, the object of the present
conference.
You wish reduced taxation. The creditors
wish increased security on consideration Of a
reduced interest. Taera never vas time in
the history Of the city when circumstances so
favored such an adjustment, as the present
Money is abundant i'll every part Of the
country. Even in our own city the deposits :
which have accumulated in our banks are in {
excess Of previous years at this season, and
oans are easily Effected where the security
which commands confidence is offered. The {
securities of the city If they may be properly q
50 called are at their utmost point of depres-
,ion.s that every element essential to an easy
adjustment of financial difficulties exists to /
al extent of which We have no previous ex- !
perience, and of which We may not have for :
many years TO come. {