The New Orleans daily Democrat., 1878-11-10
Communicated wv
FUNDING THE CITY DEBT.

rnitted by all. That this must take place is SO
well understood that the current quotations OF
the premium bonds have not varied Tor Two
months. The quotations lay between 90 and 80,
and they have not risen since we have brought
forth funding plan by which the capital now
converted into premium bonds can be finally
established at its actual value. That which
proves that this plan would be accepted by all
the premium bond holders. without exception,
Is the fact that no objection to 1t has been made
in any quarter. The carrying out oi th,s paa s
Locked for ae anaon yrdeh IL 19f
about by the premium bonds .,
In fact the premium bond scheme was found
ed on an error 1t was supposed thsit IN a very
short time the assessment on real estate within
the limits OF this city would assume on ascend
ing progression In direct ratio wit h the eXigen-
Giles Of the progressive play. Of the municipal
lottery. and That The more this lottery required &
the more the assessment would yield, @dhe
basis was false, and it is now seen that the op.
posite to what was expected has occurred. and
far from foreseeing an early Improvement in
the amount Of assessment. new decline is per-
ceved, an infaIlible decline which is Indicated
beyond mistake by the prices obtained. with
yaiae 81 real estate witbin the PRECINCTS Of
the citphas fall len, wi,hout .exaggeratlon, fully
two-thirds. perhaps three fourths, and the in
Contributes powerfqy % to this decline Il be-
comes therefore absolutely neeesg7ary % h t2 stop
der this condition that the city administration
becomes possible.
settlement must be had about the old consoi-
idated bonds Of the old city. the bonds of
ss2 Wboh are m m and protected by
soidation Of the old municipalities In one city.
which law has been solemnly recognized by
lures. and which has been executed faithfully
and loyaly for M quarter \, Of Of century? The
e he premium = pond "a seaene a " wanted
they have tried TO disregard and break the law
Of that period, law really ,uteary since It
forbidding it as long as the first debt the con.
solidated debt. was OF entirely paid, unless the
fge speoa Wbot a7e the oop
decided? They have decided, that the act Of
1869 was valid contract and should be exa-
decide on The na DAM ssued from Re Thrd
District Court to compel the municipal author
1882 and no one doubts but that the Supreme
Court our VIII VII confirm m i re IN ma,ndamus. -,
Ths ana % ava5 6s wa M aan
one way: It is to reduce the capital of the pre-.
MUM bonds to. its real value. to its actual
1852 the validity Of which cannot be attacked.
It is not neeessary for us to say that the pro,
forth is justified blythe fraudulent and illegal
character Of almost all the bonds issued after
the ACTS of 1851 and without the direct ap-
proyal OF the people OF the parish Of Orleans.
FUNDING.
:, Now this is the plan by which the taxpayers Of
PARTIES, that is % say tbe holders Of every de-
stopped. W. Ws assume, and this is q fact Which
ths' gity. but it is is ., fact generally nd
init mtedws assnme nt theErsforet that the
% s5oDSosa nesns @ q ho enc old ptk debt a91Rss q 1sss
We have capital of d little less than SIS 100000
bonds. what is this oapital WORTH It Cannot cannot
be valued any higher than it Is daily sold on the
~ fbaaa M s hoT ga ake his eapta
which 1t is to-day entitled 10 under the uncon-
stitutional premium bond law (which interest
In the drawings Ut the municipal lottery and
we I'm IND as capital o sum Of $500
70 ana per Cent q 9n
It is established BY the act Of 1876. The premium
bondholders could not complain, since the en-
allowed 90 interest which to day is not paid
them them; thfrg3loIe, ,sn3I this new funding would be
Now, as 10 the account Of the city, to these
n st5ooooS o. Of funded fun DC premium bonds must be
Of 1852 guar anteed by law and not subject to
funding. which you'd Increase the total capital
$4,000 600 which ore now the figures
AS to the, past due interest on the consolidated
eon hSy to b believe hat the
eepa CO per cent or oebt If tae
sacrifice Of the sinking fund, which is allotted
them n by the act Of 1852 for the gradual payment
OF that a debt which sinking fond gave ibis city
an extraordinary character for soldity, import |
ance and responsibility.
1t 10 thus seen that the old consolidated bond. |
holders would make more sacrifices than all |
others, and that the premium bondholders
would wm' be called upon to make none at oil.
eral and total d bt a capital of s8 B0O.oOo and q
yearly Interest of $4,000 to pay. instead of one
Of 5000 Of s65oooo Of s7oo ooo and on Ia dis
" FwNfw irrY
must e said that It vii be necessary to
err wh the consolidated bondhodes for
still unpaid and which amounts to 100000,
70 mere re or Lees bt tbs interest can be paid them
ditftculties Woul d be removed.
All told, the'nferest on the city debt would
not exceed s4e5,ooo This would be- fixed, until
consequence of this general and good d-produe
1ng 1 fpfnding, O sinking fund could be reconsti-
TT tnted aa Ter the gradual and general extinction OF
The premium ,bondholders In this arrange
men ment would be those who would gain the most
prec1ated securities, they would have we'll es-
tabished values yielding per cent revenue,
VI whereas day what they do receive is matter
Premium bonds are now quoted at 90 only
TTt TThen zen deduction is made for brokerage on {
from the date of the funding of the capital
debt they would be quoted at 40 to As, for these
then be much appreciated and sought after as
solid az. and i, permanent g investments:
with the debt Of three railways, amounted to
Sl2 900 ooo bearing 6 per cent interest, or say
$4,000 per annum. to which there had to be
added. besides. sum Of about 10000 as sink
ing fund for the redemption of the consoldated
bonds; and the city easily, provided for this
burden wi h an assessment on real estate of
372, 600 900. In which she never defaulted How.
tnen., With Liabilities reduced By half, as COM
pared TO those OF 1855, through this proposed |
funding could she default with an assessment
OF 100000 or even $780, 100000. If 1t were thus
reduced?
BY what precedes 1t is readily seen that the
proposed or funding would be advantageous to
gilmore al1,mo especially SO to the premium bond
nolders--WhO would soon see the new bonds
command a, price such as the premium bonds
nay nave never had nor can ever have il there be
~ noI nnal arrangement entered into by which I
LILY aAs9lty and permanence may be secured to T
oae re ascending play OF the