The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-05-04
TIE DEBT OF NEW ORLEANS.

TO tho Editor Of the Democrat:
Ths bonded nud liontug debt Of this city
has rsneLed an amount greater than can 10
borne.
10 this fact ID due ths depreciation Of city
bonds to twenty-five cents on the dollar, and
the nom payment III tho liabilities gf the
municipal government for pnst years.
II n premium bond Of $1,000 III worth only
$3.50. and the creditor of the city cnn be in-
duood TO accept therefor new bond nt tho
rate Of gb cents on tho dollar. OF $3.50, ,bsprin-
elpaI and interest rendered certain. he would
be benefited ~ The extent of 500 on the $1,000.
and tho 81 y. thus relieved. would DO enabled
ID meet the expenditures necessary 10 accom-
pliah the PURPOSES Of u municipal corpora
ton.
Unless n satisfactory compromise Gan bs
obtained the condition OF municipal affairs
must grow WORSE until the burden will be-
come intolerable. Property. deprecated In
value as II Is, cannot longer stand tho strain.
III tho creditors Ut the city will consent to
scaIe their bonds mud other obligations TO
thtty.five ceiits Oh the dollar, resolving In
exchange therefor u new bond ht phr, amply
secured. with coupons attnehed, payable
setmi-niinually, and bsnftnE Interest ht Tho
rats VI 4 per centam psr nnnutn. II would
upon their part b. an apparent sacrifice but
In fact Ill uctuni gain.
III their aHsets arc IN bonds they cannot be
estimated ut valuation III EXCESS Of the
maj kst rate.
III to secure u loan they are pledged u.s. col
lAtHrAla, OF, II necessity CDinpes their sale.
the highest Offer would not exceed twenty
tlve cents on the dollar, that, then, - their
ngttlnl value.
If the bonded md floating debt OF tho city
were reduced ID $7.oOD.0DO Bearing 4 per cent
interest per anh'lln tho Interest could DO
promptly met, ana IL sinking fund of 100000
annually sst aside for the lirst twenty Years
ana $4,000 Tor the thirty years succeeding
would, III q period Of fifty years. extinguisil
the principal.
ion should tbs tii,tt,g for SETTLING aBde annual
| $3.50, 900 4 tho first twenty years for pay
600 81 ths principal; and after The expiration
Or twenty years tor setting aside S45O.D0D
annually for payment Of interest and the OK
tingntsliment III tile principal Tho coupons
vi each year should bs made receivable Tor
the taxes of that year and. by u eonstitu-
liunhl provision, the entire property within
| the city should 10 mads liable Tor special
| tax sufficient to meet the annual require
ments of the city for lts bonded debt. priIl-
| cipnl and interest. until finally extinEuihhed.
| IL might be further provided that nli action
| of the Council should be void un II provision
| tad bceIl annually made fur the Interest and
propOrtionate pnft ~ the yearly redemption
fund
| Provision should also DO made by which
the city shall be incapable OF creating any
debt IN excres Of slunl revenues the lnLefDst
upon the bonded debt including the amount oi
redemption fund 10 bs first deducted there
from, tts estimated annual revenue 10 bt
bnatsd upon the actual collection Of the previ-
/ o,is years. and Ill taxes to bo summnrlly col.
Ineted.
| Any appropriation by the Council, or the
creations nj any liability inrxeas5 Of revenues
tp bo void "a ngninst The city, ana coilecttble
only from the members Of the Council con
tractiug the same, and their surslieS.
A b nd thus secured. aud made non-thxable
should ~ worth par.
The bonded debt Of the city, thus settled
nn"n sure basis, would cehse to be tbs foot
ball uf The money eschnhger. Capital, TO
ll,yed Of onerous taxation, would be invested
In tbs development Of our commercial, manu-
featuring and agricultural interests. Prop
elty, relieved Of IT. burdens, would again be
come fuvoritc Investment. New lifs ant
enterprise would be- inhlif' Sted by those wht
are now dependent aud bopslcss
To the bondho!der nothing would bs nctt1
nily lost. To the more than two hundred thou
snnd inhnb tnnta who make UP our population
would come rnef and prosperity. In VIVA
piled. lhls appeal ID to the Judgment Of TIL
bondholder. His interest lis ms much takei
Into consideration as that Of our tnsolven
city, for, IN demanding all, he may secure
nothing. Il. u. II.