The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-04-27
LOUIsIANA's CREDIT.
Her Credit aud Resources Hetter than
Those Of other southern states.
IN Y Trihnnel

| Louisiana comes out from under the
cloud Of negro rule in a much better
| financial condition than were most OF
the Southern States When their govern
ments passed into the hands OF the re-
sponsible class of their citizens. At the
end of the war Louisiana owed about
81, ,O00,000 for debts contracted chiefly in
subsidizing railways and in establishing
a school fund. 70 this sum was added
ment In 1866 and 1867 for repairing the
levees, and 81 900, 600 to pay the long
neglected interest on the old bonds.
Thus the liabilities OF the State when
the Republicans took hold Of the gov
ernment aggregated about $4,000, ,OOO
! BY the first OF January, 1874, they had
run them up to $22, ,4300O0 or the $12,-
100000 added, according to the state
ments Of eminent bankers Of both par.
ties about $6,000,OO0 was stolen. The
bonds were not. of course. transferred
directly from the treasury to the pockets
of the thieves, but they were issued to
carry out schemes of plumber, and the
State got no benefit whatever from
them. Most of them went to subsidize
railroads which were never built,
In the fall Of 1873, when the credit of
the State was so far ruined that no new
bonds could be hoated in any money
market OF the world, prominent Re-
publican banker Of New Orleans, In con-
junction with few large holders Of
Louisiana securities in New York, got
up scheme for reducing and consoIi-
dating the debt and preventing it's fur
ther increase. They obtained with some
difficulty the consent of the Kellogg
government, and in 1874 the project was
carried out by legislation and constitu-
tional amendment. The debt was
scaled down and funded at 60 cents on
the dollar, except about $4 .OOO. 900.
which was decided 10 be not fundable
by the courts. and Is practically repu-
dated 1t was provided that the debt
should not until 1904 exceed the total of
$15, ,000. 900, and the most stringent re-
qutrements were made to enforce this
provision and to insure the collection Of
taxes to pay the interest on the obliga-
tions thus consolidated. In order to
guard against the creation Of floating
debt, which might have to be assumed
hereafter, the constitutional amend
ment limited absolutely the expenses
OF each year to the revenue raised
in such year. There is probably
no State debt in the Union SO
hedged In and protected against legis-
lative action which might impair Its
value as is that OF Louisiana under
these provisions Of law and constitu-
tion., The honesty Of the operation by
reduced may be questioned, but the
State was not able, or believed she was
not able, to carry the whole load, and
fixing the amount which she thought
she could shoulder, she offered the half
load to her creditors, and they accepted
it as better than no bread. The result
of the transaction Is that the property
holding class on getting control Of the
government find matters in such shape
that. with the economies they are intro
ducing in its running expenses, they can
pay the annual interest and build up
a sinking fund with comparatively
that the new government will strictly
carry out the agreement with the bond
holders. Louisiana's credit always
stood high before the war. The influ-
ence OF her great commercial metropo-
lis was to infuss into her politicians
Of business honor, which,
unfortunately. were not felt very keenly
Ia many OF the Southern States. There |
are are no suggestions Of reputation among
tne conservatives, but, on the contrary, |
one nears many expressions Of desire |
as to make her bonds worth more than
par In New York. During the short ses-
sion OF the Nichols Legislature now
drawing to a close. held, It must be re-
membered, in the midst of political en-
citement unfavorable in high degree
to the study Of economy, remarkable
evidence has been given of desire and
ability to reduce expenses. The effect
OF the legislation adopted will, it is esti-
mated, cut down the annual cost to the
people Of the State government proper.
S325.000: OF the parish governments
$3.50 900, and Of the New Orleans muni'
,ipal government. $685., ,0Oo-a total
saving Of $1,090O With her State
and local affairs prudently admins
tered, as they undoubtedly will be now
hey are in the hands of her responsible
and with the constitutional
guarantees Of her debt, there is no rea-
son why the credit Of Louisiana should
1ot speedily become as good as that of
states like New York and Pennsyl-
rania.
Grenadines, lawns, jaconets. mattIese suitings,
ol ieo dress linen, with eubroideries to match,
re specially At M. L. Byrne d Co.'S.
Ihe CoNTRABAED CHILDREN have determined
help feed aud clothe the poor little inmat es of
{. Atary' Asylum.