The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-05-06
HOW THE STATE CAN PAY.

FOW THE STATE CAN PAY.
10 the Editor ofthe Democrat:
NJ man who ID acquainted with the personnel
~ the Constitutional Convention now In session
inthis city can believe that that body roaet stfe-
jonnHu do any act injurious to the State or Its
paople. or derogatory Of the honor and good
name thereof II any such results follow its de-
iIberations, they will be attributable TO errors of
Judgment and not to design. 5m..-- ...5
lam satisfied that the great majority Of the
members want and intend to do right and
therefore feel that II ID every citizens right and
duty to contribute such suggestions as ne can 10
MD OF the great work.
The general appropriation bill for expenses
~ The state government for the eurreat year
1g7a amounts to s6sy 40 "a. The Convention by
reduction of salaries and abolition Of useless
offices and other reforms. will most certainly
affect reduction In our government expenses
OF at least siG3 430 "a.
In other words reduce them to- 100000
II We add to this sum. Tor support OF pub $780,
And for levee fund OBSERVATION-DISCLOSURES. 100000
Against this we estimate the following rev-
ennes On the present assessed value ts177 o0o)
Bay six and half mills ................ $1.15o 500
Poll tax. ..........-.......-.-..- 100000
Total. ...,........-..,5 81 $50 900
The sum stated as the proceeds Of licenses is
the average amount that has been collected an
nuay for 1877 and 1878 The Convention should
provide in the constitution for system of grad
uated licenses. or rather authorize the Legisla-
ture to % So the license TO 6e prop9rtioned IN Ia
party OF course such Q system could only ap-
proximate absolute justice. but 1t would relieve
us 10 great part Of the present unequal taxation.
which ievies the same license for business of
100000 In amount as for one OF $1,000. 1T Will
not do to- abandon entirely the license system
for that Is the only way of reaching large
amount Of capital which will otherwise escape
taxation altogether and pay nothing to the sup
port OF the government.
Our voting population In 1876 exceeded 175.-
0O0. III the payment OF "a poll tax. Of say 81. be
imposed, and its payment be prerequisite to
the right to VOTE we can safely count on s1oo.0oo
As regards the present assessed value Of
sarse amount % in the State which Is not s asses
sed at all: which,. whom brought upon the rolls.
will more than offset any reduction for excss
sive assessments In certain portions OF the
State Besides. there la n large amount OF
capital In this State which is not now assessed
conclude. therefore that any fair valuation
will not put our assessment below its present
We have. them q total expenditure Of say
$4,000 with a probable revenue OF 81 G5O,00o;
excess Of revenue. s750,OOO Putting the bonded
se a eyins rpas Of T. or Is
penses Of collection and delinquency. These
bonds are not due for nearly forty pears 10 come
these depressed times, no sinking fund need be
provided. 1t is to be hoped that during that
tRasf Without increasig lie rate W Of d taxation tho
aggregate result thereof will suffice to provide
in whole or part for the principal, which may
these considerations show that with q tax Of six
and q half mills, just one haD Of the present .n
total State tax the State can cary her debt frith-
x1af0 peoip IN Irrn
ring the odium which will Inevitably attach to
Reputation. l understand that our creditors
Will willingly submit to reduction OF interest
Think the floating debt can and should be
retired BY making past due State @ warrants , re- re-
linquent leyee tax which belongs to the Levee
Company. This would be q great relief to- the
fiei to the State by bringing into the active
mass OF taxpaying property vast amounts now
paying nothing. 1t would induce the .redemp
Besides It would retire every dollar Of floating
debt OF the State. which is not one-tfth of the
amount due for delinquent taxes.
The effects of a total or partial Reputation of |
the debt csnnot fail to be disastrous to the best
interests Of the State. Considered simply In the
$40 for every one that is repudiated. The bonds |
of the state enter largely into the financial and
operaons hans q he city on them
with the banks here and elsewhere
Aside from the disaster Of sudden destruc-
will be engendered throughout the business !
community a distrust aud want Of confa
denoq. which will speedily be- felt In the
banks-perhaps regular uanic forcing them
70 suspension. and through them dragging
city. which. be it remembered. pays three Mills /
OF all the taxes Of the State. PROSTATE New Or
leans, her banks aad merchants. and you pros
trate The whole hh her aborers
depreciates the val ues Of properly. and puts an
end to all hopes Of our great enterprises. such |
~ railroads to Texas and ths
our eyes TO the fact that when Z people. are
once branded with "repudiatton' Il Is 9 fatal
blow TO all hope Of money coming here for In
away. and the State will not recover from the
disaster for scores OF years.
Y may be, and perhaps is, true that there are /
considerable amounts of fraudulent Gebts In |
GUIDED In the present bonded debt OF the State.
But apprehend the amount Is far less than is
generally supposed. :, |
The bonded and floating debt when the Radi-
Gals came into power exceeded s9.ooo.o0c. This
was OF our own making. and ~ exclusive OF the
Citizens Bank bonds 50 that s.. 900 OF the
present bonds tbetnR 60 per cent OF the nine
millions, are. clearly charagabie TO us. Ihe
present administration, through the Funding
Board, composed OF our most honored citizens
Bush, Auditor Jumel and others, have issued
perhaps two or more millions Of the existing
bohds-that too. with the express authority and
sanction OF the Legislature or 1877!
with what show OF right or reason can we
now justify ourselves In the eyes Of mankind
II we repudiate any OF these debts Will we
not drag in the dust the good name and fair
lame OF our people?
II is great error to suppose that these bonds
are are owned by the Carondelet street brokers'. III
may % safely affirmed that they do not own
soooOO0 OF them. After orr oern people in 1877
Mnned st public confidence In these bonds. by res
a bsu.iqn of its Legislatures after our oacn onces
nave issued large amounts of them under The
i