The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-14
mtR STATE INDEBTEDNESS.
!. ,soyosFw REM EDr ron Qua PRES
ErT FINANCIAL Ills FROM
PROMINENT BROKER.

=. arhiaet bas excited more interest of late
~, tte condition Of our State finances aud the
.-ssns to be taken to overcome the troubles
Nm which they are beset. Yesterday repre-
xs..tct,va of the DEMOCRAT called upon one OF
~ ieadIne ananeiefs, Mr.. Fl o. seisas.
1aanortet-Mr. Seixas, as a gentleman who is
s,..,,l,ar with the present condition OF finances
$50, ar rather the State finances. have you any
] .s.rg h sueaest by way Of a remedy
~ s.-well, don't know, MY Idea oil such
.sItef az the state wants Just now to relieve her
n her financial difficulties would be upon the
inllnwing basia. ,, 80.
"a ,,o1 Tbe constitution levies a tag VI Ave and
: gbelf Ills to pay the inter est annually AMI ac-
Emulate a sinkingsfu 10 redeem her console
gwhinh will net n sum OF saB9 900 Al
M ior delinquency although there should
L" ~ aurh thing now. but say 20 per cent
.nnld be s2i2.otW. We then can safely rely
sson sfss. upB a being collected. Hay now that
X Htatn pays promptly The July coupons
shieh will require, to paw ION si2 600, $500 900
tl,ep Oh bet January g. upons let het pay one
eesasa who will give to the coupon holder n Ger
ti6cste stating that the state IL indebtet to the
holder for 81 SO on account Of the !aanafy
snt,uon for the year that II may be due, a..
Hsp How much would II REQUIRE % par this
MI. &. TO bas this one. half coupon Will re-
suirp S7lD gng With the ei7D DVn for the july eru.
so,,, Il viii be sBsoo 600 We have lust estimated
KIN We certainly viii collect In cash " 5000; 80
thie would leave rs m cash afte, pnyine the
ana hall coupon. me. which will belong 70
shs holder Of these si7 so cetl1cates, but pot an
amount sufficient to take them ut IN full, and
probably not all OF this amount would be on
NAV, many Of the holders Of these certificates
would rather cell them nut than walt un,ll the
sum would be sufficient to redeem them III part
INV. TO further help the Stae she should be
permitted, cay when siooon should BE- accimn-
lated 10 the credit Of THESES rettiieues, 70 iyer.
disc 10 buy them MP Mt the lowest price they
may be offered TO- h.t.
Bondhult'ers who would sell these certif cafes
would much rather eel hem to the state e. the
~ painibg an indirect advantage ~ bis bond,
first. the state would rrohehy, buy NJ. these
certificates ct ~, average 81 grobnpiy not over
Now We have shown that after .naying one
and one hat coup,ns W. w1a'a has " ,s es y
thai tai2oDn pf delinquent tax to make up the
isceo required to buy 40 NIL these CO, tiIicatss:
Then there would he no iloa ing tndub einess
for that year. There IL no,hpg which destroys
tha value Of our bonds more Ia the EFT NATION
Il persons, hvding them than . continued
0oatjng Indebtedness OF the EtHte and more
usrtieularly on The interest account
The second advantage Int the bondbolder
would derive by the State buying no the rerti,..
only renu,red from this delinquent fund Of
y7Aa0ov $4,000 tp make the amount that would
b required tn buy up all these certificates say
that che bought them at nifty cents, this would
still leave s2s9 600 on account OF the dflinaupnt
tax. which should he applied, ne II ia collected,
10 the nurrhasn NJ the bunds themselves which
shuuld be cancelled should his be carried out
We should soon see our bnnds at par.
The Stnta debt being gradually reduced, no
noeting indebtedness accommodating, no bad
faith on the pnrt Of our State In her contract
with our onfholders. and the bcndhp,defs ~.
eeivinE good rite of interest, for III he sold
his certificate 10 the State ut fifty cents he
would net els per cent interest on bic bonds ut
par, And the certificate holder who did not
wish to cell would only be the fnnie certain to
ret his amount paid Ii full, for every certificate
that was sold 10 the State would make his that
much better, It would he Optional With the
certificate holder 10 sell or not In this way the
Htate would not break Its contract made with
the bonahulder, which was the inducenient
held out to make him surrender his bend and
take one ct sixty cents la return.
Through this method the State can move on
until she IL In a condition tp pay In full. have
not heard a single bondholjer who would
throw an obstacle In the way Of carrying out
this: but, TO the contrary, will aesist TO help the
State to regain the high credit she once en-
joIsd.
these views should be drawn. why II should
not also apply to the purchase by the btate OF
the coupons pact due and floating upon the
market now for the yeats 1874. Is7Rand 1919.
These coupons are now sold for from forty TO
forty-1vs cents. Where, then, IL the Injustice
In permitting the State 10 purchase these secu.
rites, and gave THE difference, and which will
he TO the advantage OF her credit
The reporter then withdrew.