The San Francisco call., 1910-06-18
LOUISIANA CREDIT
DOUBTFUL ASSET
Ii Exposition Is Merely Finan-
cial Question San Francisco
Has Won Fight Already
By PAUL SINsHEIMER

1t was in an Off year that San
Francisco floated some of it's most sue
cessful bond issues after the fire of
given another exhibition of successful
collective financing. The pledge OF
$5.750.0O0 for the exposition under pre-
vailing conditions is but another com
mercial paradox. At the same time
that money was being subscribed this
week in blocks from 81 900 to $4,000
the stock market was lifeless.
1t would appear that the goal of
$500, 600, which il is intimated con-
gress may set, will not prove embar-
rassing TO the projectors of the enter
prise. There are many ways by which
this sum could be realized quickly.
LOUISIANA'S CREDIT POOR
This merely Is offered for purposes
of contrast with the southern rival for
the fair. If it is to be reduced to a
decided now
1t has been noted that the state of
Louisiana proposes to authorize spe-
cial bond issue, for sum ranging from
s5,0OO000 to s10.00O,O00- In these
plannings the credit of the state of
Louisiana has not been taken into
serious account. The attorney gen
eraI of New York in an opinion last
year intimated that savings banks OF
his state should avoid Investment in
Louisiana state bonds.
The trouble dates far back and grew
from the repudiation of what are
known as Louisiana's baby bonds
securities offered in denominations AS
low as s.. Some action is cOntem-
plated to rehabilitate these bonds. but
it provides for payment at only so
cents on the dollar.
IN DIFFICULTY NOW
recent authoritative review Of
Louisianas finances directs attention
to this very thing and speaks some
what pessimistically in this vein:
Considering the depleted cOndi
tion of the states finances, the
prospect for the early redemption
of these baby bonds. even at so
cents on the dollar, could not be
very bright. especially considering
the fact that the constitutional
limit of taxation nearly has been
reached in Louisiana.
! The practical reputation OF
! these bonds has not been without
its attendant effect upon the
circumstance may find some diff
fculty in refunding the states
regular bond Indebtedness,
amounting to more than S11,OOO,O0O,
which falls due in 1914
None of this is set down in dis
para cement of a competitor but merely
to direct attention to the healthier
financial atmosphere hereabOut.
REPORTS SHOW PROSPERITY
To this condition the reports of the
California development board and the
state mineraIogist bear eloquent testi-
mony. In the former it is recited that
the products of Californias mines.
forests and farms marketed in 1909
brought in a revenue of $455, 5,369,837.
The approximation is sufficient to an
swer for the coming year. for 1910 will
show an increased output in nearly
every product. In fact. it is possible
that the present year will bring total
of half a billion dollars
The only threat of disturbance comes
from the transportation companies, and
as far as san Francisco is concerned
rather from the steamship than the
railroad lines. The rate adjustments.
while temporarily to the advantage of
the shipper. will tend to disrupt the
normal conditions without prospect of
permanence in the reductions The in
vasion of the Magellan route by the
n-Hawaiian steamship company