The New Orleans daily Democrat., 1880-03-11
THE OITY's FLOATING DEBT,

For many years the floating debt Of the
CITY has been an incubus which all right.
thinking men have desired TO sec removed,
but which has remained and increased from
year to year. TO the serious damage of the
clty's credit and the great detriment OF hon
est creditors. It WIS impossible that the
city's credit should be good when there was
more than q million of dollars of outstand-
Ing debt of this kind. which represented the
claims due for services actually rendered by
laborers. school teachers and all classes Of
municipal employees. These evidences of In
debtedness have been III many instances
hawked about the streets and sold for uomi-
nal sums because Of tho utter lmposslbility
Of telling when the city would be In position
70 pay them, and tho loss and suffering caused
by this system Of Issuing time orders In lieu
OF money, with no provision for their pay
ment, has been incalculable. Sound financial
sense dictates the absolute necessity Of wiping
out this floating debt and of restoring tho city
once more to basis where she can meet all
her obligations and not leave them to be the
footballs of Carondelet street.
Under the constitution, the floating debt 81
the city is made receivable for all taxes and
licenses due the city prior to January /, 1879,
but II would be better, for many reasons, that
they should'be converted Into low interest
bearing bond. which would be easily nego-
liable and would enable delinquent taxpayers
to pay their own taxes, without being com
pelled to 20 to broker and pay q heavy
commission.
The bill introduced by Mr.. Cosgrove in re-
Sr0r To Noa Ina rnhN Ia 4,
we believe will receive universal appreciation.
II contomplates funding the entire legal float
Ing debt Into bonds Of the denomination or SIS,
having ten years to run from July. 1880, and
bearing interest at per cent, payable semi
annually.
These bonds are made receivable for Oil
taxes and licenses due prior to January, 1879,
and also IN payment OF property sold by tho
city for taxes and licenses due prior to 1879,
Or which may DO sold. except for taxes and
licenses exiRlble subsequent to January, 1879.
Ample provision Is made for the payment
of the interest and principal Of the bonds
from the collection of back taxes, with
out the levyinK OF any tax or without tn
any way Interfering with the operations OF
The premium bond act; and the issuance OF
,he bonds will not conflict with that act, be-
,ause no Tux 10 required To be levied.
The bonds will be negotiable securities, in
stead OF almost valueless pieces OF paper, and
he creditors Of the city will DO enabled
q exchange their scrip for m interest
,earing and convertible bond, which may be
lsed for the payment OF taxes licenses, etc,
md which must soon be greatly appre-
lated I'm value. School teachers and
'ther employees who have clung to their
neagre salaries. represented by almost worth
ess orders, will find that their patient waiting
las been rewarded, and that at last their labor
vii be paid for; and the city will be saved iniin-
to trouble and ex pense In the way OF Lawsuits,
osts Of court. etc.
The objections to the debt a. 1t stands at
resent are many and too obvious to be
but there is one danger to the
reditors that has been overlooked, but which
night cause them irreparable injury. Should
fire destroy the records Of the floating debt
I the City Hall, or should they be lost or
tolen. there would be no means whereby
srge class Of creditors could ever establish
heir claims. as the destruction Of the books
,ould wipe out the evidences Of the debt, ex-
ept, possibly, In q very few cases. The bill
, In the main an excellent one, and will, II
assed, eliminate from municipal affairs q
rouble that has been Of long standing and
7hich has perplexed and worried many ad-
Illustrations.