The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-01-10

pAAon OiiiS vi 1918. Inc loss 10 bn0 StaIk
resulting from the depreciation OF State war
rants is obvious-a loss caused not only BY
tne arrangement which It produces In hel
AFFAIRS, but also by the increased cost entailed
Dy the departure from a cash basis. / rec.
ommend great care in this particular. IurQe
upon you, as sacred duty, the most absolute
economy In appropriations. A mere glance
at and comparison with the constitutional
expenses oil the government and the maxi.
mum taxation allowed by the constitution.
Will point to the imperative necessity OF rigid
economy, II not parsimony, In making appro.
priations. And In this connection I can onlv
repeat what was said in my last annual mes
sage-that the creation Of new and untried
sources OF revenue should not be made the
basis OF additional appropriations. After
cuftailing appropriations to the last possible
point, urge, within the limits of your con-
stitutional power, the importance OF fixing
such rate Of general fund taxation az may
put the general fund upon cash basis, thus
saving largely, as already stated, In the cur
rent expenses Of the government. Your
duty In this particular will be some
what facilitated by the reduction In the leQis-
lative expenses made by act No. AZ, Of the
regular session OF 1873. Whilst on this sub
Lject. / urge upon you the immediate repeal Of
ESQ much Of act No. So, approved March IL,
1877, as provides for the payment of the per
diem OF the members OF the General Assem-
bly,, the expenses thereof, and the warrants OF
the constitutional officers for the first quarter,
by the Fiscal Agent, from an advance on his
part OF 100000, on which he is allowed five
per cent interest This act is Objectionable in
several particulars; in the discrimination
which 1t makes between the members OF the
General Assembly, its employees, expenses,
and the salaries OF the constitutional officers
and those Of other officers who give their
whole time to the State and depend exclu-
sively upon their salaries; In the payment Of
interest to accomplish the eashing Of one
class Of warrants, whilst others equally as
meritorious remain unpaid and are forcibly
deprecated thereby. Besides these objec-
lions. the provision virtually does injusticeby
allowing interest on certain salaries and not
on others, and by permitting this interest to
run on the whole amount advanced by the
Fiscal Agent, until the deposits In his
hands, to the credit OF the general fund,
to the sum adequate TO the
payment Of the entire advance with interest,
instead OF providing for the restriction of the
advance and consequent ratable stoppage OF
interest by the deposits to the credit OF the
general fund In the hands OF the Fiscal Agent
as they are made Should you desire or deem
1t absolutely necessary to provide certain
means Of payment for the services and claims
which you may deem essential for the carry
Ing on OF the government, 1t seems to me you
could better accomplish this result by placing
all claims which may be considered Of that
character on the same footing, and directing
,he proper officers to set aside from the gen.
srvl fund, as 1t accumulates, an amount suffl-
lent to insure their payment
The bonded debt Of the State now amounts. |
n consolidated bonds, to $11, 724,s 800; estima-
ed amount yet to be funded $4ss, 100; general |
und warrants (Kellogg's statement), $780,
20 92, as reported to me by the Auditor. The t
collection Of revenue from the five and a half |
Mills tax not having been adequate to the |
'ayment OF the interest coupons due on the |
lrst OF January, 1879, they have remained |
unpaid.
Deeply as deplore this result, I was pow
rless either to avert or remedy It; and In |
rider that this may be understood, q review /
4 the funding Legislation seems necessary |
'y the provisions Of the funding law, State
onsols were authorized to be issued to the
xtent Of $15,000,00O, or 80 much thereof as
night be necessary, payable forty years from
he first day OF January, 1874, to bear interest
t the rate OF per cent per annum, payable
In the cities Of New York and
lew Orleans, on the first days Of July and
anuary in each year, interest coupons being
nnexed to the bonds. The provision made
,r the payment OF the principal and interest
these bonds, thus authorized to be issued,
'as tax OF five and a half mills, to be annu-
lily levied on the assessed value OF the prop
rty, real and personal, In the State. The
'nguage Of the statute is as follows:
"That a tax of five and a half mills on the
ollar OF the assessed value OF all real and
ersonal property In the State, Is hereby an
ually levied and shall be collected, for the
urpose OF paying the interest and principal
the consolidated bonds herein authorized.
nd the revenue derived therefrom is hereby
It apart and appropriated to that purpose,
nd no other, and that 1t shall be deemed
lony for the Fiscal Agent or any officer of
le State or Board Of Liquidators to divert
le said fund from its legitimate channel, as
rovided, and upon conviction the said party
lall be liable to Imprisonment for not more
ian ten years nor less than two at the dis
elton OF the court. II there shall, during
~ year, be surplus arising from said tax
ter paying all interest falling due on that
ar, such surplus shall be used for the pur- +,
ase and retirement OF bonds authorized by
Is act, said purchases to be made by the I
Id Board OF Liquidation from the lowest !
Eers, after due notice; 1rocided, that the !
tai tax for interest and all other State pur-
ses, except the support OF public schools,
all never hereafter exceed twelve and a half
Ills on the dollar. The interest tax afore- q
Id shall be continuing annual tax until f
said consolidated bonds shall be paid or :
1eemed, principal and interest; and the :
Id appropriation shall be continuing an I
al appropriation during the same period. q
d this levy and appropriation shall Author | :,