The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-03-06
THE INTEREST TAX.

The invIolabilty Of the State debt and the
utter depravity OF all who question its sane
tity Is the favorlte and unceasing theme OF
the Times. Twelve millions OF debt, bearing
per cent interest to pay which tax of five
and half mills on all OF the property of the
State ID levied seems to that journal very
insignificant matter, and the widest and
most absurd arguments are advanced to
prove that Louisiana is teeming with wealth.
and could pay interest and capital without
the least difficulty, II her people were only not
perlurers and swinders who are seeking by
Undertaking. their property to evade taxation
and the payment OF their legitimate dues. In
q recent article on this subject the Times
expresses a desire to know the grounds
upon which the inability OF Louisiana
to carry this debt Is based. Why
Is It," exclaims our contemporary, that
Louisiana. whose products represent about
$65,00O.O00 annually, cannot sustain her
debt Of $40 0OO, 900, whilst Georgia with re-
sources nearly 80 per cent loss than ours sus-
tains debt almost as large, and holds her
credit above par III the markets Of the world
The fault lies In cumbrous and ineffi
| in mismanagement OF such resources as we
have, and In neglecting to secure those which
we might and ought to utilize"
Here we have the whole argument OF the
bondholders in the demand for their pound
OF flesh. Let US analyze 1t: We are told,
first that the annual products Of Louisiana
amount annually to $65,OOO,OOO; secondly,
that Georgia. with resources nearly 80 per
cent less than ours, sustains debt almost as
large. and holds her credit above par
thirdly, that our system of assessment and
collections does not force enough taxes out OF
the people and we do not utilize all of our
sources OF taxation.
We shall not refer to authorities to test the
accuracy of the figures OF tho Times. We
accept them as correct, and shall simply op-
pose them with irrefutable facts.
1. A fatal error In all the arguments made
by the bondholders and their organs and
representatives to show that the people of
this State can pay the debt and interest in
full is, that the $4,000, 900 of annual products
represent the wealth. the purchasing and
paying capacity OF Louisiana. Such Is not |
the case. The wealth of the State and Its |
paying capacity are represented by the value |
OF Its real and personal property and the |
value OF that Is regulated by the profits re-
allied on industry and investments. Grant
ing that the products OF Louisiana am ount
annually to s65.0OO.0OO; yet, IL it requires
nearly that sum In wages, taxes, wear and
tear, etc, to produce them, the State |
and people are In no measure en-
riched, and hence are not able to |
pay a vast debt bearing an exorbitant rate
of interest. Such is the case in this State.
Louisiana produces In abundance the richest
staples In the world; but nearly twenty years
OF war, plundering and misgovernment have
involved her people In ruin and debt; so de-
moralized their labor and overwhelmed them
with taxation that they have grown poorer
and poorer year after year. The farmer and
the planter work under the greatest disad-
vantages; he pays exorbitant wages; exorbi-
tant profits on supplies; exorbitant rates OF
interest on advances; exorbitant parish and
State taxes, and Is forced to employ laborers
who give him but from four to five days
work where they ought to give him six. He
pays imitation prices for everything and pays
his taxes at initiation rates. and receives for
his products gold prices. The consequence
Is that at the end of the year, when
his crops are gathered and sold, he finds
himself no richer than he was at the begin
ming. and he Is happy if he is not poorer.
What cruel folly it is to hold that the gross
value OF the crops produced under such cir
,umstances represent the wealth of a people
md their capacity to pay exorbitant taxes,
fraudulent bonds and swindling rate Of
interest! If by the profit made by the pro-
iucers Of this State on their or ps be meas
lred the value Of their property, the assess
nents of the State should not be over $40,
700, 900. And If they be required to pay the s,
public creditor according to their real worth,
he public creditor will get little or nothing
2. The Times assures its admiring readers
hat Georgia, with resources thirty three per
,ent less than those OF Louisiana, and with
lebt nearly as large, maintains her credit
Ibove par In the markets OF the world. We
lave not examined into the resources OF Geor-
fla and compared them with our own State;
Tor are we prepared to give the figures repre- !.
enting the debt Of that commonwealth. We !.
ccept the statements of the Times. But those
tatements prove nothing; they are absolute
Y irrelevant. Certainly 1t cannot be held that =
ecause the debt OF Georgia is as large as that
I Louisiana and her resources are one third !,
,ss, her credit Is above par. The reason is
)und in these facts: |. When the people Of
ieorgia obtained possession of their State
government they investigated the debt, elm
lated from it, and repudiated, nine millions
I fraudulent bonds and fixed the interest on
he residue at reasonable and fair rate
lot q dollar of her debt Is now in dispute; =
, bears moderate rate Of interest; 1t OPP
resses neither property, commerce nor in
ustry, and no voice In the commonwealth is
aised against it. g. The sum total Of the
tate rate Of taxation Is four mills, and will
9 reduced in year or two to three and
ossibly to two mills. These facts the a
ecognition Of an honest debt bearing r
low rate of interest. and low rate of tax $