The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-11
NEW ORLEANS BULLETIN
NEW ORLEANS, APRIL ii, 1875.
THE DEBTS OF TIE CITY.

l.
Sometimes counsel is darkened by the mul
titude Of words. There has been great dea
said about relief to the taxpayers OF the city
and about getting rid Of the Immediate neces
s;ty of levying tax to meet the interest OF
the city's debt which now amounts to abou
4 million and a half year, calling for al
assessment Of more than ono per cent OF
property assessed at double its value, or a,
equivalent Of two or more per cent on it
real worth, the same property paying also &
heavy tax to meet the interest on the clty's
share three-tifths) Of tho State debt Tho
total load Of tax carried by the city is not fal
from nine per cent on the property taxed, il
rated at its actual market value.
II is not necessary to demonstrate that the
city's liabilities are such that her resources
are insufficient to meet them. tax suffi-
Gent to pay State and city curren. expenses
and the interest on State and city debt is 80
great that it can not be paid out Of the
income from the property taxed. II offered
for Sale no julirous capitalist will buy prop
er.y hardened with taxes moro than eqnai to
anv rent he can reasonably expect TO realize.
Let taxes remain at present figures ana Let
property decline but little more and a sale
Of properly to satisfy 9 tax judgment will
become contisc alto pure and simple.
This is sheer insolvency. Nothing more or
less can be made out Of it, Il some enor-
mously wealthy man owned oil the property
now taxed in New Orleans and owed a debt
OF forty millions upon it, and if hs were
obliged to raise two and hall millions a year
to pay the interest on his dobt, besides three or
your millions more to pay municipal and State
expenses he would soon discover that he
could not rent his deprecated and neglected
property for enough money to pay his bills
His next resource would be perhaps TO borrow
money for his necessities but he would find
that mortgaging his property for loans would
be no easy task.
He might next offer to sell portion of his
property to obtain money with which to pay
taxes, but he would find no ono willing to
buy his lots and buildings encumbered with
such enormous charges. He would resort to
all manner of expedients and pleas for delay.
lie would not be willing TO admit that his
liabilities exceeded his available assets, and
he would struggle on as best he might, in
hopes OF some relief in the future
Such is the condition of the IN my who own
the property, owe the debt, and pay the |
expenses Of the city. They owe what they |
are not able to pay. If left to their own |
control, they would simply stop paying
interest IN the Safe and city public debt.
That is precisely what they require the per-
mission of the General Assembly to do.
State laws now compel the Council to col |
Iect an interest tax, and the first thing needed |
is permission from the State to suspend the |
levy and collection of this tax, in part or
altogether for term of two, three or more
years. or until economy good government |
erty to bear the necessary tax. OF this the |
holders OF the city's bonds cannot complain !
with cause They have bought these bonds
at an average Of perhaps forty per cent of
their face value, knowing the cisy'.s condition
and the risk they run. There is no reason
why they should thus escape their share Of
tie city's mistortunes and tho depression Of
all her business interests
There is no reason why The owners Of
stores and dwellings should be tortured to
pay to bondholders an interest equivalent to
fifteen per cent on their investment If the
creditor lives abroad and spends his Gun
taxed) interest income there, it does not in
crease the equity Of his demand. Why should
property put in the form Of securities be
favored SO much, while all other property in
the city groans under tax greater than its in
come?
Property that has been accumulated in New
Orleans and converted into the city's bonds
can not Justly claim exemption from the evils
which attach TO accumulltions invested in
grounds and houses. Those evils have taken
from tie latter their productive power yield
ing scarcely rents enough to pay repairs in
surance and taxes, the holders losing the
fn.ire interest on their investment. Ought
the bondholdcrs to escape ali these evils and
interest on what they paid for their bonds?
1t il not to be believed that the General As
semblyehas no power to relieve the city from
the operation of the law which compels
the assessment and collection Of an interest
tax. The entire matter ought to be at once
remitted to the city authorities with ample
power to act As the dire necessities Of our dis
,ressed Inhabitants may require
THE JUDGESHIP OF THE SUPERIOR