Louisiana capitolian., 1880-01-24

. ate dealing ut oil tines. 1t Is for the
trainers of our statutes, our courts OF JUS
tice and the officers of the law to give
and preserve tho proper tone Of public
sentiment on this important subject
Yet those who insist on going away, III
spite of the warnings Of MI who know
tho character of the climate and other
disadvantages Of the country they seek,
may as well understand that their places
in this State will ut once lo filled by
wise immigrants from other States. The
well founded, belief that more than half
of tho immense cotton crop Of 1879 was
raised by the hands Of white men Is
good evidence that there will never be
my serious lack Of laborers in the South
even if m epidemic of folly should carry
away to tho North tho entire colorod
race.
STATE DEBT
After prolonged, anxious and mature
lclberation and discussion, the conven-
ton agreed upon IN ordinance respecting
tho consolidated bonds Of the State,
prescribing the rate of interest to be
paid thereon, limiting the annual Tux to
bo levied for payment of such interest,
fixing u limit to the rate Of State tax
for this and all other purposes, authoriz-
ing refunding Of said bonds, and
rcmltting the interest coupons falling
due on the first Of January, 1880.
That ordinance was submitted, with
the new constitution, TO separate vote
and wus ratified by large majority Of
actual votes, while more than $4,000
citizens, who did not vote upon 1t, gave
II their tacit appreciation and Acceptance.
IL Is now u part of our State cOnsti-
tuition, having taken effect from tho
date Of the PRONUNCIATION of the vote.
The rate Of interest is fixed at per
cent for five years, 3 per cent for fifteen
years and per per cent thereafter. TO
pay this interest u tax not exceeding
three mills on the dollar Is authorized
and required.
As it is optional with tho bondholders
to refund their consolidated bonds ut the
rate of seventy-ivo cents in now bonds
for each dollar in present bonds, bearing
4 per cent interest from the date of re-
funding, the entire proceeds of three
mill tuX would bc required to meet the in
tercst il the whole amount of consOlida-
ted bonds should bc thus refunded. If
all are refunded tho new bonds will
amount to about $9, 0OO, 900, which, at 4
per cent interest, will require $3GO,O0O
per ann,n,.
At the present market value Of Louisi
ana consolidated bonds Less than fifty
cents on the dollar), n purchaser by in
vcsting $1,000 mny obtain $1,000 IN con
coils, which he can exchange for $4,000
in new bonds drawing $3.50 interest per
annum, or fully 6pcr cent interest on his
Investment. II il therefore probable
that many of the present holders of the
consolidated bonds will prefer to OK
change them for new per cent bonds,
even IL the market price of the former
should advance to more than fifty cents
on the dollar. Since 1t cannot be posi-
lively known what portion may be re-
funded before tho first of January, 1888,
next following your session Of Mny, 1852,
the only sale course IL to assess the
Whole three mills tax each year. The
interest tax having been brought with
IN rates which property can bear, it
should bc fully collected and scrnpn-
lousIy applied, IA ordered by the people
of the State.
Tho debt ordinance, much opposed in
the convention. and ratified by u vote
far from unanimous, must not be hcld
~ either confirming the original inval-
dity OF all the debts confused by fund
ng in consolidated bonds nor rs affirm
ing the moral obligation of the people to
pay debts contracted without their as
sent, and from much Of which they have
derived but partial bcuclit, and from %
great part oft no benefit whatsoever
Tho ordinance should rather be held ~
tho evidence Of the sacrifice which the
people of Louisiana are willing to make
before suffering innocent creditors to
incur loss or permitting any plausible
inpntation upon the fair fame and up
right character OF Lousanians. AL
though the settlement IN made without
the express consent Of the creditors, they
will in time be convinced that il il the
best the State can do and the most nd
vantagcons arrangement that could have
been made acceptable to the representa-
tivcs of the peop,c in the State Convcn-
tion assembled. That it may bo salts
factory to just and considerate bond
holders II must be carried out in good
faith and in all respects as n !inalty.
The adjustment has been the solution
of the most difficult financial problem
in the States history. Ratification of
the debt ordinance had the immediate
effect of largely increasing the market
value Of consolidated bonds; bypunctuai
payment and by the steady increase OF
the taxable property aud resources OF
the State this increase will continue.
The ordinance does not provide fOrthe
final liquidation of the debt. In tho eX-
isling condition Of the property and re-
sources of the State no regular periodical
provision for final payment of bonds il
feasible.
1t is to be hoped that these b"ndsmay
in time be owned chiefly at home, and
be held as u suitable investment for all
trust funds. They offer The only chance
for all time for Investment in the bonds
of the State of Louisiana, the creation
of new debts being strictly forbidden.
In order to save future trouble the
payment and acceptance of interest on
State bonds ought to be equivalent to
an acceptance and approval of the debt
ordinance by tho holders 80 receiving III
tercst.
Article of the debt ordinance renders
necessary an appropriation for preparing
the new bonds which holders may de-
mand in exchange for consolidated
bonds.
DEBT OF NEW ORLEANS.
BY article 254 the constitution directs
the Legislature to enact proper laws for
the liquidation of the Indebtedness of
New Orleans and for the application of
the city's assets to the satisfaction
thereof 1t is to be regretted that the
convention did not dispose of q matter
of such great Importance. The State
debt, which called for measures Ofrelicf,
was attended to; but the city's debt is
much larger and bears upon less taxable
property, and therefore it also demanded
some appropriate action. The taxable
property of New Orleans bears nearly
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