The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-11-20
CITY COUNCIL----OFF1C1AL.
REGULAR VI EETENG.
C1ry HALL. NEW ORLEANS.

,rha Council met this day at IL o'clock m.
I'm regular session.
present,-Hon. +. w. Patton, Mayor. pre-
gliding. and Administrators Behan, Chevaltey,
41lvnn, Houston. Esaacson, Marks and Mealie.
The reading Of the minutes Of the previous
meeting was dispensed with, and thoy were
approved as printed.
communications from the Mayor and At,~
FnInEstrat0rs.
Tho following message from the Mayor was
reed and ordered spread Oh the minutes:
MAyopArry or NEW ORLEANS,
CITY Hail. November 10, 1878. I
f3en,lomen of the Board Of Administrators:
E,ecta1 nv Tho people of Now Orleans TO
manage It's affairs for the next two years. q
solemn duty rests upon us so to dlscharge the
trust cnnfided that we may secure the ap-
prova Of our own conscleilces anu inc respect
and esteem of our fellow CltHcnS.
Chosen by party organization, IL ls equally
o1r duty to realize that the people OF the city
are our constituents, and that Gil our Efforts
should be directed to advance the interests OF
che whole community without regard 10 cisss
corporate or private interests.
RI other words. that we must do our whole
duty In q manly, straightforward manner,
without fear or favor.
/ helieve that these arc the sentiments OF
each and every ono of you, and | hereby
pIefjre myself to do all In my power to aid
YOU In carrying them into practical action:
There will be many questions OF q perpleX-
ing character presented Tor your Considera-
lion aud action, and in arriving at D just con-
nlusion you must be prepared to meet mis-
REPRESENTATION and Islander. fear you cannot
escape them, for the reason that when there
are SO many diverse interests to be considered
IL In impossible to avoid giving offense to
some portion of the community, who will
consider themselves aggrieved by your &C.
lions. Among the questions which will de-
anand your immediate, earnest AND constant
attention Is that Of finance. or oil others this
Is the most important, for on it depends tho
solution of all others. [ do not propose to
5iiiBtU u1 ttilfee eHusea which. since the war,
have plunged the city Of New Orleans into u
condition Of financial distress and consequent
embarrassment in the conduct of its affairs.
1t Ia not necessary to call TO your attention
that in one year a tax Of $3321 1914 was wrung
from our people, and yet failed TO meet tho re-
quirements of D reckless expenditure by
$2,692,51O that debt after debt was created
with no prospect Of paying 1t; Or that timo
after time these deIicienccs first became
'Iloating debt" and were subsequently funded
into bonds bearing @, 8, and some rs high Els
10 per cent interest The history Of this
reckless financial system Is familiar to you
all.
In 1874 tho debt reached the enormous
sum of 1924, Tai 7G5 In 1875 it amounted to
1923, 233,770. At that time the tax upon an as
sessment Of $l10, 298, 54 WAS two and one half
of one per cent az f3 ct).
Patiently had the people borne q greater
assessmeEt and larger tax In the hope that
an Increase of prosperity and of values
OF some special interposition Of Divine
Providence, would take place to relieve Thorn
from burden which was intolerable The
limit Of endurance had been reached. and 1t
became evident that something must be DONE
or that there would be IN utter collapse by
the refusal Of the people to pay an enormous
tax upon an ubiquitous assessment. At that
city, realizing the enormity Of tho evil and
the supreme necessity of finding and apply
ing a remedy, made strenuous efforts to hf-
ford relief to 8 s0re)y distressed community.
About that time the attention OF the people,
both in this country and in England had been
directed to q system, adopted for long time
In Continental Europe, for the purpose Of rails
ing large amounts OF money for governmental
purposes and for great works of internal i'm
provement. This was known as tho "pre-
MUM" loan system.
You will pardon me If / occupy some time
and space In o review of that systom, rs it is
directly connected with n subject Of great in
terest to the people at this timo.
An English writer. Mr.. Newcome says on
this subject: "The salient principles Of these
loans may be categorized under five divis
ions:
1. They are repayable by periodical draw
ings within fixed period of years, the num-
Der Of debentures to be redeemed at each
drawing being arranged when the loan is
issued, and tho plan d'amortissement is
printed in the body of every debenture.
g. The annual payment made, for interest,
redemption OF debentures and premiums, is
e1ualized.
). They are divided into o large number of
debentures, bonds or obligations, which, for
convenience of drawing, are usually divided
into series.
ums at each drawing of various amounts
s. The redemption Is effected by a cumula-
tive sinking fund; q small number or deben-
lures at the first drawing, the number being
gradually increased by the amount saved IN
Interest by the last redemption. BY this pro-
cess the annual payment is equalized.'
When loan Is raised by o government for
some pressing emergency Or for works OF In
ternal improvement Of intrinsic value, cam
not conceive of any better system which
could be adopted. The purchaser of such
bonds, knowing the resources from which the
payment Is to be made and finding them ade-
Quate. can have no better investment or bet
ter security. For example I will take from
Mr. Newcome's pamphlet description Of the
Imperial Austrian loan of 1860 and the Dan
ube regulation loan Of 1870:
'"The former was issued on the fourth Of
March, 1860, In 400,0 900 debentures of ESQ each,
repayable entirely by one hundred and four
teen semi-annual drawings. Interest at the
rate of s per cent is allowed; the coupons are
payable on the first of May and first of No
vember. Every debenture when recalled re-
G6lVeS luu, WIFI lie HAtepGtoH tlttb my uG~
beatlres are drawn with bonuses of the col
lective value OF csc, 900, the two highest prizes
being ESQ 600 and $4,000 respectively
The total payment made in the iifty-sevcn
years is GGS, sol 900 sterling as follows:
394, 800 debentures paid with ego
each. ................ eos, G5S, 900
$500 debentures receive bonuses 100000
100000 debentures cost to redeem, COS, 1853, 900
Interest at s per cent absorbs. 80. 39,143000
The redemption is effected by a cumulative
sinking fund, and the annual charge for the
service of the loan Is q little less than 6 per
cent.
In the Hungarian government" Danube
regulation loan, which was authorized by
legislative enactment, free forever from
any tax or reduction whatever" the money
was needed for works Of internal improve
ment, and payment was secured by a mort
gage on the harbor and dock dues Of the river
Danube. 1t was also guaranteed by the Aus
tro-Hungarian government and by the cities
of Vienna, Ofen and Pesth. The loan was
emitted in 1870 for the amount of E2,400,000