LOUISIANA. 



481 



recommend proper and further legislation for the final 

 adjustment of the bonded debt of the State on the 

 following basis, viz. : 



1. That provision be made for paying the interest 

 thereon for the first five years since January 1, 1880, 

 at the rate of 2 per cent per annum in lieu of 7 per 

 cent, as therein provided, the payment of which not 

 to prejudice or novate the original constitutional con- 

 tract of 1874, unless the amendment to the Constitu- 

 tion necessary to effect the proposed reduction of in- 

 terest be adopted by the people of the State. 



2. The State of Louisiana will thereafter agree to 

 pay 4 per cent interest per annum, in lieu of 7 per 

 cent, with ample legislation to secure the prompt and 

 regular payment of said 4 per cent. 



At the request of the Governor, the Auditor 

 and the Treasurer, to whom he referred the 

 above proposition, gave an opinion, of which 

 the following is an extract : 



If the holders of unstamped 7 per cent consols 

 should avail themselves of the provisions of the debt 

 ordinance and scale their bonds at seventy-five cents, 

 as authorized therein, and the holders of consols 

 stamped for reduced interest should retain their pres- 

 ent form of bond, the yearly interest requirements 

 of the State for the existing debt would, for five 

 years, be as follows : 



$11,322,900 consols, less 25 per cent, $8,492,175, at 4 



per cent $339,637 



$265,200 consols, stamped, 2 per cent 5,304 



$198,750 constitutional bonds at 4 per cent 7,940 



Total yearly interest $352,931 



The interest account under the constitutional pro- 

 visions would require for twenty years, or until the 

 period at which the Constitution provides for the pay- 

 ment of 4 per cent on unsealed bonds : 



$8,492,175 at 4 per cent, twenty years $6,793,740 



$198,750 at 4 per cent, twenty years 158,800 



$265,200 at 2 per cent for five years, 3 per cent for 

 fifteen years 145,860 



Total interest as per debt ordinance $7,098,400 



Under the proposition now submitted by the owners 

 and representatives of bonds, the interest requirements 

 would be as follows, viz. : 



$11,588,100 at 2 per cent for five years, $231,762 per 

 year $1,158,810 



$11,588,100 at 4 per cent for fifteen years, $463,524 

 per year 6,952,860 



$198,750 at 4 per cent for twenty years, $7,950 per 

 year 159,000 



Total interest, twenty years $8,270,670 



SUMMARY. 



Bondholders' proposition $2,270,670 



Debt ordinance 7,098,400 



Difference in twenty years $1,172,270 



Less surplus from interest fund to general expenses 

 for live years 566,095 



Total difference in interest $606,175 



Or an average difference against the State of $30,- 

 308.75 per year from January 1, 1880, to January 1, 

 1900, after which time the Constitution provides for 

 the payment of 4 per cent on the face of consolidated 

 bonds stamped for reduced interest. 

 ^ We unhesitatingly advise the adoption of the propo- 

 sition as looking to a final settlement of this vexatious 

 question, and as presenting a means of partially re- 

 lieving the State from existing financial embarrass- 

 ments. The adoption of an amendment as proposed 

 will place the bonds of the State at par, and all sec- 

 tions of the State will experience the advantage flow- 

 ing from the values thus added to the resources of our 

 citizens. 



In addition to these considerations, this measure of 

 justice will unite the people of our State upon a ques- 

 VOL. xxii. 31 A 



tion which must disturb our politics and impede our 

 material advancement as long as it remains unsettled. 

 We have the honor to be,very respectfully, 



ALLEN JU MEL, Auditor. 



E. A. BUKKE, Treasurer. 



The necessary steps have been taken by the 

 Legislature to give effect to the proposed ad- 

 justment of the difficulty, and it is hoped that 

 this, with the passage of a suitable revenue 

 bill, will restore the credit of the State and 

 enable her to repair the damage inflicted by 

 years of reckless extravagance and misrule. 

 The receipts at the Treasury for the year 1882, 

 from all sources, amounted to $2,353,621.66, 

 derived as follows: General fund, $803,569.- 

 43; school fund, $205,455.20; interest tax 

 fund, $819,022.92 ; levee construction and re- 

 pair fund, $5,232.24; general engineer fund, 

 $141,753.78; interest and redemption of $5 

 bonds, $44,764.68; redemption of school cer- 

 tificates, $7,487.32; poll-tax fund, $5,209.72; 

 Charity Hospital fund, $47,672.47; levee and 

 drainage fund, $36,034.56; free-school fund, 

 $13,567.42; district levee fund, $119,870.34; 

 militia fund, $150; judicial expense fund, 

 $102,387.83 ; agricultural and immigration 

 fund, $990 ; balance on hand January 1, 

 1882, $453.75. The disbursements for the 

 same period amounted to $1,617,164.17. The 

 assessment roll of 1881 shows that the real 

 property in the State was assessed at $130,- 

 701,901, and personal property at $50,758,060, 

 thus making the former pay 72 per cent and 

 the latter only 28 per cent of the total State 

 tax, while it is well known that the value of 

 personal is quite equal to that of real property, 

 and should bear an equal share of the burden 

 of taxation. The taxation is limited by the 

 Constitution to six mills. Very large amounts 

 are due the State for " back .taxes," of which 

 it is expected 50 per cent at least will soon be 

 collected and paid into the Treasury. "When 

 this is done, and the flagrant inequalities of 

 assessments are fully corrected, the resources 

 of the State will be ample to meet all her just 

 and legal obligations. 



The total number of registered voters in the 

 State is 172,005, of whom 158,485 are natives, 

 13,276 of foreign birth, 85,451 whites, 88,024 

 colored, 69,006 whites who can write and 16,- 

 913 who are illiterate, 11,403 colored who can 

 write and 76,087 who are illiterate. 



STATE INSTITUTIONS. The Louisiana State 

 University and Agricultural and Mechanical 

 College, since the election of Colonel William 

 Preston Johnston, son of the late General Al- 

 bert Sidney Johnston, as president, has been 

 thoroughly organized and placed upon a new 

 basis. It is now located at Baton Kouge, on a 

 high bluff overlooking the river, commanding 

 an extensive view. The main building, five 

 stories in height, is 270 by 90 feet, with two 

 wings, two stories high, 158 by 60 feet. These 

 contain 79 rooms, embracing mess-hall, library 

 of 17,000 volumes, hospital, chapel, museum, 

 cadets' sleeping-rooms, class-rooms, etc. The 



