Wheeler Compromise - Worsening Economy in Louisiana

Worsening Economy in Louisiana

The economy of Louisiana towards the latter half of the 19th century was in difficult shape. In New Orleans, the economic situation was "pitiable beyond all precedent in modern history" with immigration low, a lack of confidence in the government, an depression, high unemployment, and robberies and high taxes were both commonplace, and the population had decreased by 30,000. Taxes outstanding amounted to over $400,000,000 as much business was being conducted on credit. In total, $25,000,000 of debt wracked the government.

By the start of 1875, begging was commonplace, and starvation was becoming more and more common. A resentment between the working classes and those in government grew, as the latter remained in relative luxury. This was compounded by unwise legislative decisions, leading to city expenses exceeding income. Laws on customs often restricted the flow of revenue in the merchant quarters, and high taxes dealt heavy blows to immigration rates.

The people of New Orleans, and indeed of the whole of Louisiana have been enduring for six long years privations and suffering that no other people in the United Stares have ever endured. Our property has no salable value, our working-men are without employment, our merchants without customers, houses and stores vacated in every street.

The rural situation was equally dire, with plantations losing value in the countryside. From November 1871 until November 1873, over eight hundred separate plots of land had to be sold to pay taxes. As a result, crime increased, and much blame was attributed to the local government, together with allegations relating to corruption as Governor William P. Kellogg appointed three comrades to positions in the Supreme court.

In 1874, $200,000 was defaulted on tax returns, and it became gradually more difficult to sell land for tax money.