The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1879-04-30
THE STATE DEBT.

| the state DeOC. Ii IL u iae1, ~"
ever. that most of the country men,
beers agree that the debt is too large,
and more than can be paid by us.
Some of the delegates are in favor OF
an adjustment, that is, reducing the
interest, and finding out the fraudu
lent portion of the bonds and elimi
mating them entirely from the debt
Unless the bond books, which con-
tanned the proceedings of the Kel-
logg Funding Board, are produced,
it Will be impossible almost, to as
certain that portion of the debt which
is tainted with fraud. Hence, we
may expect long and proftless de-
bate on that question. The misfor
tune seems to be that the bond hold
ers have influenced many of the lead
ing men of the Convention, or at
least the views expressed by many,
seem to be more in sympathy with
the inuiolability Of the bond-holder's
contract, than with an overburdened
and impoverished people. No doubt
if the country members unite, ON any
fixed plan, they can succeed in sea-
ling the debt to its present market
value, and REFUGE the interest to 4
per cent. This would give US debt
of about six millions and five hun
bred thousand dollars, large eaough
indeed for US to pay.
The fayorite plan, however, and
the one that is likely TO pass, is to
ignore entirely the question of sea-
ling or inquiring into the bonded in
debtedness by the Convention, leav-
Ing that to future Legislatures, and
simply limit the amount of taxation,
say to five or six mills On the dollar.
The finger of the bondholder is evil
IDENTIFY seen in this plan. Why?-
Because with over six mills taxa
ton, the bond holder, at the present
valuation of property in the State,
would receive about 8 per cent. per
annum interest on the full amount
of their bonded Indebtedness. But,
should the assessment be changed,
and a Board of Equalization be pro-
yided for throughout the State, as is
advocated by some, the valuation of
property would be placed at some
thing like its marketable value; then
six mills taxation would raise as
large a revenue as l0a mills does
now. By this means, the bond-hotd-
er would obtain his seven per cent.
interest on the face value of his bond.
This might not be the case, for the
frst two or three years after the adop-
tion of the Constitution, but it is
confidently hoped by the creditors
that there will be greater prosperity
in the State, and the valuation OF
property 60 up to $4,000, 600, 900
which would secure them the full
amount Of their interest. The valu.
alton of all the property in the State
is now $17s,o0o,0oo, and 81 mills il
annually levied on this amount tt
pay the interest on the public debt
Say taxation is limited to six mills
II mills will be sufficient to run tn,
State government, II or 2 mills fol
school purposes, the rest of the
mills (3i will 60, under the favoritt
plan, to the poyment of the interest
on the bonded debt. Now, simply
increase the valuation of our prop
erty, by Board of Equalization, ant
the bond-holder is paid in full. But
this gives no relief to the people,
We might as we'll pay 81 mills inter
est tax on the present valuation, al
to pay q mills on double the valua
ton of property.
We hope the Convention will not b.
deceived by this specious plan, but
will, in the trus interest of the PEG
pie, and in accordance with an al
most unanimous wish of the coun
try, meet the issue squarely, ant
provide for the scaling of the bonde,
debt to its present market value, (5'
cents on the dollar) with 4 per cent
interest. Call it Reputation, adjust
ment, compromise, scaling, or wha
you please, we care not for the hame
but apoverty-stricken people deman
; relief, and they look to the Conyen
ton for it.
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