The People's vindicator. [volume] (Natchitoches, La.) 1874-1883, 1878-12-21
The State Debt.

The signs of the times indicate that
the ragged edge has been at last
reached in our State finances. In
other words, the scheme of State en-
dorsements for private individuals
and corporations has been stretched
till the line is about to break.
The Evening Item, Of New Orleans,
says:
Before the war our public debt was
comparatively nothing, and the as
ses>ed values on which taxation was
laid amounted to $3.50, 100000. After
the war assessments were still re-
ported at S250,00O, OOO-an excessive
valuatio"--and the high tax levied on
that amount furnished extensive
plckiDgs and stealiDgs 70 those who
were con the make.' Unfortunately,
so many were Of that mind that be-
fore the fortunes Of the States passed
to other hands there was little left to
steal. Instead of an improvement in
real estate there has been therefore a
steady decline, and the present basis
OF taxation is reduced to $40, 600 900.
How soon an Improvement may take
place is not known, but it certainly
will not occur until the burden of
taxation is lishtened.
Now let us figure a little. The an
nnal interest of SIS, 900, OOO--the pres.
ent constitutional limitation of the
State dcht--is Sl.05O,OCO at the cur
rent rate, towit: seven per cent.
Five and a half mills, the amount set
apart by our law makers to meet the
States bonded Indebtedness, vi pro.
doce on el70,000,O0O of taxable pro
perty, S953,OO0. Deduct from this
amount twenty per cent as the cost of
assessment, collection and non pay
ment in special cases, and we have
S73o,OOO to meet an annual interest
account of Sl,O5O.O00. 1t would.
therefore, be necessary every year to
borrow 1912 900 to meet the current
interest, saying nothing of the priu-
cipal!
This plan of borrowing to pay in
terest has gone abont as far as it can
go. The State fsc is on the ragged
edge. with dark and deep abyss
beneath and no daring Curtins ap-
pears to leap into the gulf. In this
dilemma the Funding Board will have
to un|earn what it has learned amiss,
go back upon its own reckless doings,
and take new departure. Half of
the obligations funded, the State has
no more right to pay than it has to
pay the debts Of the Consolidated
Association of Planters, or those of
the Citizens Bank. Let a halt be
called before confusion become worse
COMPOUNDED.
We have noticed with alarm this
borrowing to pay interest, fully be-
lieving that it must result to the State
as it has always to individual debtors
who followed the same plan. 1t
seems to us that no policy has been
adopted, worthy the name, for the
liquidation of our debt. On the con.
trary, there has been an appeal con-
tinually made to the "honor" of the
taxpayer to "sustain the credit of the
State" without an effort to reduce a
burden, which in.time they were GER
tain to relieve themselves of.
The conviction has settled itself on
the public mind 10 this State that the
payment of this 81 mills "interest
tax" is a thing of eternity; that it
will grind on, grind over, until we
become but tho slaves of sharks and
bond-holders. And many good hon.
est men are questioning the proprietv
Of utter reputation instead of utter
starvation.
1t is folly to talk to men, "of hon
or" when that honor depends on the
payment of money they have not.
They might be ever so willing to
give up life to keep uutarnished their
good name as debt paying people,
but lives don't pay dollars, and bond
holders demand more than blood
We know taxpayers who borrowed !
money last year at 30 per cent to paw
heir taxes, and give Governor Mich
'IIs' administration their support
his year they cannot borrow nor
rave they the will to do 80.
The truth of the business is. that
January will bring bankruptcy TO
thousands of individuals and corpo-
atlons, and Louisiana will go down
With many a good, honest man who
'annot pay his debts, simply because
'e hasn't the money.
The citizens of Louisiana have
'een bankrupted by the ten years
# rapacious Radical rule; they can
Jay no more because they have moth
ng, and they must have a breathing
pell.