The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1880-02-11
THREE MILLS FOR INTEREST.


Gov. Witt has In his message anticipated
nearly all that ie to be said upon the subject
Of the State debt. Not only does he Indicate
most graphically the condition of public SEN
tlment under which the debt ordinance was
framed BY the convention and adopted hy the
people, but he formulated, very conclsey In
our opinion, the conditions by which the
Legislature will have to shape their policy III
dealing With the matter. 1t Will he remem-
berad that, In addition to the clause recognlz-
Ing the face OF the debt and providing for o 2
and per cent as has been already explained,
there was q further clause providing for n
refunding at seventy five cents IN new bonds
In thia connection Gov. Wiltz says:
As 1t ia optional with the bondholers to re-
fund their consolidated bonds at the rate ~
q " nty Ave cents In new bonds for each dollar
FROM the date ef retund x, the entire proceeds
ef three mill tux would be required TO meet
the interest II the whole amount Of consolidated
bonds should ba thus refunded, If all are re-
funded. the new bonds will amount to about
~ 900 600 which. at per cent interest will re-
uuife faso 900 per anuum.
Al the present market value of Louisiana con
eoidated bonds tleas than hfy cents on the dol
lari n purchaser by investing $4,000 may obtain
| $4,000 IN new b n's drawing s4so interest per
annam or fully per cant interest Gu his In
veetment 1t IL therefore probable that many
of the present holders Of thp cons lidated bonds
will prefer to- exchange them for new per cent,
hnnds, even If the market price of the former
shnnld advance to more than Atty csnte ON the
dollar. Since II cannot be positively known
what portion may be refunded before the iirst
q January, 1893. neSt following your session of
Ms ss mills aa each a he
lax having been brought hin rates which
property can bear, 1t should be fully collected
aud arfilnulouaty applied. aH ordered by the
nppna ~ tho Etnta.
The fact is that 1t is greatly to our advantage
to encourage the refunding here described,
notwithstanding 1t will Involve larger pro
vision during the first n We years to meet the
interest We have declared To the world that
although we do not concede the righteousness
of the debt under which Louisiana now Ia
BORE neither do we pretend to repudate that
debt We simply accept az fact. and IN
dertake to 40 for 1t the very best that our
means Will admit This attitude, however,
which we claim ia credltable to the party as
1t is honest In ltself, can exert its legitimate
influence only when we shall have shown that
we are In conscientious earnest, and that we
are both willing and able to meet every pledge
that It involves with scrupulous fidelity.
Certainly, IL the bondholders have any conf
denee In us. they will prefer to do that which
1t s to our interest to have them do, to wit
refund their bonds at seventy-five cents on
the dollar and take new bond, bearing
per cent Az Gov. Witt shows, this will be
the better course for them, and 1t will be up-
douhtedy the better course for us, since every
bond issued under the refundlng process rep
reeents new friend and fresh sympathy for
our financial policy. A general determine
ton In this direction will imply
general recognition OF our sincerity
and a general aequiescence In our PROPOSE
tlons, and this contamination 1t is conspicu-
oualy our interest TO promote. In view OF the
litigation recently get on foot through the
instrumentality of the State Of New Hamp-
shire. An unmistakahle manifestation on
our part Of q disposition to stand by the en-
aagements we have made In the constitution
to meet them promptly III the spirit az well
az the letter-will 20 very far toward allay-
Ing any suspicion or resentment that may
exist and toward dIaarming the hostility
now taking shape III the quarter We have Ill
dlcated.
Some doubt has been expressed az to the
practirahility Of devoting 60 large proper
tion Of the revenue to interest purposes, but
we think this doubt Will be dIaapated upon
Investigation. Mr. Farmers revenue bill Ia
very comprehensive In its provisions. IL
brings into reputation all the taxable values
In the State, and arms the government with
all necessary powers IN the premises, Under
a proper execution Of that law the revenue
will be ample, after setting aside three mills
to meet the interest to defray all the expenses
of the administration. Aud since II liz practi-
cable to do this. and there can he no ques-
tien IA to the wisdom and propriety OF doing
1t, we can aee no reason for heeitatiug. A
Gov. Witt shows, the e are no means OF estl-
mating the proportion OF the debt that will
be refunded. Consequently, the only cafe
plan Ia to proceed upon the assump tion that
all OF 1t will be refunded.