New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-06
LOUISIANA.


The Sf,fe debt and liabilities of Louisiana at Tie
beginning Of the war amounted TO SO o39. 900. Of
This amount - 3G2 900 had been incurred on ac-
count 81 SIX railroad companies. Two of these con-
panics. which had together received S5-3Ooc IN
State bonds had not. il is ead buili Single mle oi
railroad f. SGj. the debt and liabilities, eArlud-
ing deb Of S13 .jG2, 800 contracted in aid OF the
Rebellion, amounted 70 fl335s.oOo; and IA lsts,
when the reconstructed state Government wa'in-
onruroted. 10 S17.3l7O5f OF this last sum
$4,000 600 had been contracted to procure funds
10 repair leNecs damaged during hc war, and To re-
place those dcsiroyed -, 100000 had been sub
scrbcd for railroad stocks 500 900 granted rs
railroad subsidy: and $1,000 900 Of old floating
debt and interest had been funded Three years
later II SD the state Auditor reported The bonded
debt AZ ~ 100, 900. of which nearly S7,0coooO
were described rs contingent liabilities. for tho
payment Of which corporations were primarily re-
sponsiblo. Besides the bonded debt there was mis-
celsnoous Indebtedness. much OF which had been
Incurred before the war, and which amounted 10
S3lS7. 900. The total debt therefore for which the
State was absolutely or contiugentiy liable,
amounted in round numbers, according TO THIS es-
innate t. 500. OOO.OO0
In his message OF 1872 the Governor reported the
Interest bearing debt at Sla,S5S 600, and tic
yearly interest charge at 81 fD3 O0C. ln 1870. an
amendment 10 the state Constitution Yves adopted,
which provided that the state debt should never
exceed S25. 600, 900 prior TO the year 1880. Tie
Legislature appears TO have sought 20 cyade this
constitutional prohibition by making a9propria-
lions in excess of funds in tie Treasury, and Of
current receipts. This attempi defeated by the
action of tho supreme Court of the state. and the
bonds of several issues were declared void. In a
table Of defaultng State debts published November
a. 1874. The Financial Chronicle estimated tho debt
of Louisiana az S2i, 433. OGO, all Of which in
default on account of interest and S10,OOO.OOO Of
which was estimated TO be the hands of foreign
owners.
The large increase In the debt of Louisiana dur
ing the six years from 1868 to 1874, was mainly
due 10 the issue of bonds to raise iunds to build and
repair evees to aid in the construction OF railroads.
and TO nay the Ordinary and extraordinary expenses
pf the state Government. The bonds for levees and
railroads were issued with the approval of both
poli,ical parties and the laws under which they
were issued received the votes of Democrats
well as of Repubhc in the Legislature. The
nueston of using the credit of the State for these
PURPOSES was never regarded a partisan at
that time. Brt II was openly charged by the Gov
ernor of the State that somc OF the acts granting
State aid which passed ever his veto. were
carried by corrupt means. There Is little room to
doubt that many OF these grants were jobs, and
that the bonds were fraudulently authorized. But
for this one pOiitlcai party was as uch IcspoSple
as the other and it is certain that the Republican
Governor did all he could 10 prevent II. The fire.
0nent political disturbances In the State made the
execution Of the laws very difficult. and the ex-
penses of the State Government appear for this
reason TO have exceeded the amount received from
taxation.
Statements of the contingent and Aoating debt of
the State and even of the bonded Indebtedness are
so conflicting that one despairs of finding a trust
worthy and accurate account On January I. 1878.
the State Auditor reported the bonded indebted
ness &c $21. s72, 800, warrants $1,423,9s5, total
S23 296. 3O5 Bat this statement was silent re-
specting $54ss. 602 OF contingent Indebtedness
reported by him the previous year. Be-
fore this a grant Of 100000 TO the
New-Oreans aud CHATTANOOGA Railroad had
been declared void by the Supreme Court of Lou
isiana ana II is not known whether this sum was
included in the contingent debt. reported Jan
uary l. 1874 or not. In statement made by
Governor Kellogg in 1873. he estimated :" the
bonded and floating debt. January 1. 1874 at
S24 s32 4O7. The Financial Chronicle January,
1877 > estimated the total amount Of obligations
"issuedr at $27, ISIS, 433. and the amount "ac-
knowledged" at $11, SGT 155. IL is probably quite
safe 10 say that the Louisiana debt at its high
est point did not much exceed. II 10 reached,
S27 900 00O and that the highest point reached
,n 1874 This amount included all the forms Of
contingent liability incurred tor internal improve
yoents money due the school and United States