New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1875-04-20
THE PEOPLE AND TIE TAXES.

; ing features are the consolidation OF all
obligations of the city under an agree
ment to pay o rate of interest beginning
at two cent and rising at the fourth year
to five per cent, with sinking fund to
guarantee principal and interest at that
} rate. While the reduction of the higher
rates of interest to the maximum unde'
this bill is in itself reasonable, it would
seem in the present prostration OF prop
erty values that the rise in the rates from
two to five per cent within four years is
little more rapid than circumstances
warrant. We will assume that the sole
cause of property depreciation in New Or
leans is not our political diss ensions.
Without meaning any particular compli-
ment to our political opponents, we will
say that there are other cities as badly
governed as our own.
There are other cities where the rate OF
taxation is the same as our own. New
York is now investigating the frauds OF
the Tweed ring, with view to subjecting
the property of the rogues to response
bility for their robbery. 1t is found that
this ring has profited to the amount Of
ten or twelve millions by their systematic
and persistent frauds. Yet New York has
gained steadily in taxable value, and
within the past year has added forty mil
lions to her assessments. The debt of
New York is about one hundred and four
teen million dollars. The rate of taxation
is Just the same as in New Orleans-two
and half per cent. New Orleans, even
under the severely moral sway Of Dem
ocratic Council, has lost fifteen millions |
of taxable value. We infer, then, that |
political abuses alone have not caused the |
decline. We should assign the cause to
the diversion of trade to other mar
kets. At any event the mere ces-
sation of party dissension can not restore
the ability of real estate to meet taxation
within one year or two years, nor do we
apprehend that the property can bear five
per cent on twenty-three million dollars,
or meet payment Of one million one
hundred and fifty thousand dollars an
nually without any productive investment
which represe nts this large debt. It is,
then, reasonable to say, therefore, that
this reduction of interest rate should con-
tinue for longer term, SO that values
might react, by relieving the city of the
causes which occasion her decline, and
by replacing from Texas and elsewhere
that trade which modern Improvements
have diverted to other markets and outlet
ports.
With the fact evident that twenty three
per cent is an undue debt obligation upon
an assessed value of one hundred mill I
lions, with the admitted decline of city
to less than fifty cents on the
dollar, and the reduction of the State {
lebt resting on the same property to sixty
cents on the dollar, we do not think the
submit to sufficient reduc-
ion in waving an average Of two per
cent for four years to fix their bonds at {
he expira ton of that time at value
.qual to about eighty three and third
tents on the dollar. The bill is drawn in I
he interest of the bondholders and is a
'ery sharp effort at a compromise that t
would bind the citizens for larger sum I
han their present ability would justify t
hem in paying. You must do better I
han this, Messrs. Bondholders. You r
must make an offer which will C
orrespond better with the rates which r
our brothers, and perhaps yourselves, r
ave accepted in the law funding, at sixty s
ents on the dollar obligations resting on Il
lentically the same property. d
So much for the obligations of public t.
ebt upon real estate. We would like to A
now if the people-the laboring people IL
this city have no advocates of repre- 81
in the Legislature or elsewhere. F
hese mechanics who have organized for e.
lie purpose of self-employment and self 81
rotection-is there no one among those tt
no have solicited their votes who care p'
n their interests? We apprehend not ii
ye suppose that like the faithful dog m
no has pursued and caught the tt
olitical game, the jolly hunter has no m
rther use for them. Why? Because in as
ayment Of the outstanding floating debt in
1t only is the real property of the city to OF
} sold, but the right to tax the people in ps
cry item and article of primary neces- tn
ty is also to be sold out IN monopoly to
e have already stated in detail the rate be
ID effect Of this indirect taxation. 1t is Of
palpable tariff on the prime commodi- a
IS consumed by the poor and laboring or
asses. 1t is a hiring turning out Of 81
e people for terms varying from thirty Ia
fifty years to make good obligations sh
aich were imposed on the annual and sic
liform taxation on property We deny pa
at the right of indirect taxation of as
pular consumption was ever an asset SO
,ich the lender of money ever contem- CT
ated to make good like city obligations tn
We deny that there is any moral or lee
al right to sell to the highest bidder nc
3 right to tax popular consumption. We HI
'pute the proposition that the State can by
legate the right of rate of taxation upon pc
pular consumption to private indi- Or
luals. Whoever will regard the rights oh
the people will find that the bond We
lders' bill devolves upon the people by to
lirect taxation an undue proportion of ow