The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-09-18
HOW TO PAY OFF THE PREMIUM
BONDS.

We propose to show In this article how the
entire premium bonds Of the city, amounting
to-day to $12 100000. and near $4,000 900 Of in
terest due In addition, can be extinguished In
six to nine years BY simply appropriating to
that purpose the proceeds Of the sales Of City
Railroad franchises.
We think 1t safe to say that these fran
chises, taking all the roads, can BE- sold for
nine hundred Thousand dollars 5000 OOO) cash.
Under the law this money must be used to ex-
tinguish the bonded and floating debt. No
floating Or bonded debt can be bought at any
thing near as low price as the premium
bonds. therefore they alone will be purchased.
During the past year these bonds have
ranged 10 price from 221s to 371z cents. We
will make our calculations based On 80 cents.
They are not good investment for capital
lists above that figure and spectators will
not touch them at any price above what the
city will pay. She can control prices from
going above their value for investment.
100000 will purchase. .............S3 $4,000, 900
rhe city now owns. .... .....*........ $50, 760
Also her purchases from interest
funds Observation-Disclosures 100000
GAO series have been redeemed, $4,000
eacn. OBSERVATION-DISCLOSURES. l,ESO,DOO
s5,74o,976
In the hands Of the public. 7,161 $50
Total premiums issued $12 gO1, $40
Again-The plan requires and the series
were put In the great wheel at the City Hall,
10000 series OF $4,000 each . $4,000. 900
Drawn out GAO series OF $4,000 EACH 1,2SO,OOO
Now In the wheel $3.50 series Of $1,000
each ..-.-.-.. S1s. nv, 900
City Of New Orleans represents w.. 11,55s,920
$1s. 72o. 600
The allotment for the coming year Of 1880
under the premium bond plan will De $61g $50.
The "a per cent tax for this purpose
will yield, say on assessed value
Of city property, S1OO,OoO,00O,
only ........ $500, 900
Deduct for dellnquents 10 per cent $4,000
s 100000
TO the bonds held by the public
must be paid 1851 0s01s, 100000
of s619.750, the amount of the al
lotment, or Observation-Disclosures. $237,O75
The city will receive balance . 212,925
@M= 5 10000
Now how long, how many years. will it re-
quire for the city to purchase the 81, 161,0 $50
bonds Ia the hands OF the public, commencing
with $212,925, earnings from the bonds them
selves for the year 1880, which earnings will
Increase from year to year by the yearly
purcase Of the bonds.
We have made the calculation based on
thirty cents as the purchasing price, and find
that in 1880. Observation-Disclosures. $4,000
Could be bought. To this add the
drawings by the public. ..,...... 100000
Extinguished Observation-Disclosures. S93O,0O0
In 1881 S7ss.O0O and $4,000 .4 ST., COS, 900
and 50 on increasing. In this way the debt
Wontd DC paid m fuN IN less than sir gears.
But let Us suppose the value Of bonds would
become enhanced and the city has to purchase
at an average Of forty cents, the debt would
even at that price become e-rtingwished m less
than eight years.
During this time the value OF property may
largely increase under the influence OF re-
turning prosperity now spreading all over
the country, and the revenues from the half
per cent tax be largely increased, thereby re-
ducing correspondingly the time for the ex-
tinction OF the debt.
The floating debt Of the city, 10 the mean
time, will be greatly reduced, II not paid off
entirely, by the collection OF back taxes or
the issuing Of bonds payable in taxes and the
Legislature will no doubt, at its next session.
put the city In position to arrange with hold
ers Of the consolidated bonds for 9 cornpro-
mise on favorable terms for their payment.
We shall, therefore, in 1886, perhaps sooner,
see the city with comparatively small debt
and the larger portion Of our present tax d.
rected to the improvement and advancement
OF our city.
We doubt II there has ever occurred In the
history OF any city or corporation such an
opportunity to extinQuish q large deot with
SO small sum.
We must do one OF two things. Scale our
debt, which will be q serious undertaking. rs
1t requires the consent OF all or by purchas-
ing at reduced valuation. In our case the
latter presents itself in It's most favorable
FORM We hear but one opinion expressed
upon the subject Our people will stand by
the city administrators In what we under
stand is their settled purpose to use the
funds from the sale Of the railroad franchises
for the extinguishment Of the largest possi
bic amount OF the bonded debt. 1t Is
their duty, and they have shown, 50 far, de-
termination to do their duty and serve the
interests OF the city In the best possible man
ner. We are aware that judgment creditors
will do everything than can be done to appro
pirate these funds coming from the sale Of
the railroad franchises to their claims 1t is
perhaps but natural, yet we would like to see
II otherwise Should they succeed, they will
get their pound OF flesh, but the life-blood Of
the city must flow with it, followed by ex-
haustion and ultimate bankruptcy, We sin