The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1880-02-19

or the parish taxes, under the last clause
OF said article, which permits each parish to
levy 4 school tax which shall not exceed the
State tax.
orr and one quarter mills general fund
| tax" was considered sufficient, with tho nddt-
| ton Of "dH The icrnaea to the grnrrni fund' 70
accomplish all the purposes for which the
general fund tax" te required.
Three mills interest tax liz recommended by
the Governor. In his first messago AMI your
committee considered the reasons q ven by
him In support Of that reeomm"n''h'ioh ~
he conclusive IT tho committee had diitsreh
4 from the Governor his recommendation
would probably have prevailed heca,lse IN"
4 opinion Ut this chief mnRtstath OF tho state "
entitled to great weight and huy revenue
bin must receive his approval W become
law hut the committee agreed fully with Tho
Goveruor'p vnwa. Tho ordinance relative ~
thu State debt" was adopted by the Constitu-
tionnl Conventlon after prptfart"d and ~
hn,lstiva discussion. as the last ana tlnai
spttlemcnt OF the bonded debt ~ tho STATE.
and was ratified by more than majority OF
all tho people. II Ia " part ~ tho cnHstlt'l
tlon, and is no longer open Tor d'sriss'"n;
4 Ii provides that each holder 81 y consolidated
bond shall have tn" option, either to fec"lv"
thn facn of his bond WHEN due ~ tho wear
| 1914 with interest from January l. 1910. at
4 3 per cent per annum 'nr the iirat ny" S'"fa:
| 3 per cent for tho next iitnen years, ana
Der cent the1t,ttnr. or toexchangn hls bond
for u new bond ut seventy-five cents on thn
dollar on which amount q" shall receive
per cent per annllm interest until paid
All tho honhhudMs may demand the new
| bonds iha consolidated bonds amount W
about So 600 OON. If refunded the new bonds
will amount to about $9.ooo00o. Four per
cent Interest on this sum VIII BE- EGO geo. ~
| S3G0 900 interest can lawfully LA datnAndeM
| fr,t,l tho State, one hnH on tho first Of July.
| 1870, and the other half On tho iitst of Jan
unry. 1891, that much interest thx inust PC
\ collected III the year 1880 10 provide For tfs
full payment. Article ! Of the debt nrhi-
4 M ftt..fas
annual tax sufficient for TN III pay
| ment OF said intcrest, not exceeding
throa mlla" II Is plain that the convention
considered that three Mills were requires.
rpou tho basis OF aaseaaInents provided Ter
in tho constitution, ana that 1t contemplated
the lrvying Of that rate Tor years TO CONE.
| until the Increase Ia Has'~ament might lls-
tfy u reduction. FL" suhirmnru ~ ,nx's 70
| pay the interest was II e doubtful suili-
| cheney but was M, absolute Huifi,ienuy, which
could not iaii To fully pay he outside limit ct
Interest ns allowed hy th" debt ordinances.
The bonds held by the parties who hay" IN
atltutrh the numerous suits against the State
amount to less than ono million dollars. aa
declared I'm the Val inus bills AMI psfittona.
The holders Of the Remaining Sll 0ooo 600 NJ"
nuesrent II Ia believed, IN tna bast In
formed monetary ctrclrs, that nearly all the
honhholders will accept tho new bonds. r.
cents per dollar and per cent intsreat, pro-
vided they are fully assured that said
Interest will ba promptly patti. great
calamity would helall W" state u the INTEREST
provided for IN the debt ordinance should be
dufn,lted. All the bun,iholder. would then
resort to the Frierat cnurtR, aud tho sym
pathy Of the inauc II world and the support
OF universal public opinion outside oil TINS
State would be 40 strong in their favor that
the courts would 40 to the full extent or their
constitutional powers to grant them relief.
Such powerful and hostile litigation might
possibly result In the State having ultimately
to pay the whole pr cent Interest on the
fac" Of the bonds. which would force the pay
ment Or tho five and oIM-hAlf mills Tax as
heretofore collected. The contingent enemies
can Do converted into nctiv" friends nf the
State by tho payment Of the hlgh'st
ratio OF interest which they arc en-
titled to demand. The remaining dis
satisfied hondhodcrs would be lett with
out any consi,, rahe influences or public
sympathy and, In the end, would assent "
the debit settlement nad' by the State. They
can ntford TO accept that settlement, always.
proriied, that the interest ha fully and pune
tullly paid. IT thus paid. confidence Will be
soon rest red. and there Is no reason why y
Louisiana 1 per coat bond should not be
worth par with money IN London nt ! per
cont Der annum. to d per cent III New York
United States tours selling at l07 and the
United States refundtDg tts outstanding
| bonds at 81 per cent and Mt par. Our new
| bpnds, ~ oar would represent seventy-tiv
cents on the dollar Tor the present old honda
4 figure which nil hontihodrra Will vet ~
able to realize, If they refund and hold on u
their bonds aud give the new stat" govern
mnnt their encouraAnmont and support IA ,ts
efforts To make kOuu the stipulhtloils OF the
Debt Ordinance.
On tn, other hand Il simple mathematical
calculation dem ,nstratrs that the State OF
Louisiana will save millions Ut dollars ny In
ducinx the bondboldcrs to refund their bonds
thus:
PRINCIPAL.
Tho principal OF the consolidated
bonds is. Observation-Disclosures, Sl2,ooo.O O(
Seventy five cents on the dollar
thereof Ia 5000. 0ot
Amount of principal saved by -m-..
rcfundtng ..4.....-........ 100000
INTEREST, .M=
Two per cent on $4,000 900 for five
years Ia ..-,... -4..".5. $ .0o(
Three per cent on Sl2.ooo,ooo for Is
years Ia .4 "Yy5 .4"4$.-"5.-. a,ipu,uut
Four per cent on $4,000 900 for IL
wears Il G.72o.Oo(
Total interest on face of old
b ,nds for "a years Is ........ .S13.32o. DOC
-Four per cent interest on 50 600
for "a years is -..-........--..-. sSl2.2iooo.
Balance OF interest saved to
State by retundina .7...... 5 .O0t
Add principal saved rs above, 5000, o0t
Total saved to the State by re-.
funding .4.5....44..1..... s 1850, O0t
katundnH saves the State the splendid sun
OF to1u millions Of dollars. Three mills vii
induces this rei,indIng. because hat rate will
be sufficient beyond doubt. while a lower
rate will not be sufficient.
On page 2aa Of the Auditors Report for lS1.
the assessment rolls show a gross valuation
of NEUTRALITY-SUSPICIOUS. S159.ou0,00t
Three mills on which will yield,
gross #.m..... ..4.-..45. -5.......- <.Luot
Drductirg p per cent FOR expenses
and delayed collections .-5..... l1o.25t
Leaves net taxes collected In
lssn a57. Isl
Opinions differ M to whether the ASSESS
ment to be made this year under the pending
act will he more or less than the assessment
made In 1879 BID connecting that 1t will b.
greater and tuat possibly few thousand
dollars Surplus taxes may ha collected these
tn,fts not Inst. They will reman Ia thu
tr.asu either t, pay future interest. or. as
provided IN tbs first clause Of section Of tbs
present act.
TO BTY Ut TIE BONDS @.