Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1859-01-21

In our issue of Yesterday we pub

IN our ISSUE VI vcstevu"y "O ~"
lished 4 series Of resolutions offered by
Alderman Washburn at the meeting
of the Council on Wednesday after
noon. The resolutions animadver'
very strongly upon the course adopted
by the city of Kcokuk in repndiating
her bonded debt, for which the good
faith and credit OF the city had been
pledged, the endcavors which are now
being made to frightcn her creditors
into the acceptance Of one third OF the
amount in full satisfaction. me reso-
lutions conclude rs follows:
Resolred That the city Of Davenport will
continue ~ In times past to meet promptly
ell its liabilities both Of principal and inter
eat. and we call upon all other cities having
corporate debt, to join with US in taking
sneh measures for payment Of interest "a
shall show that the city Of keokuk is the
only blot upon the good credit Of the State.
The facts OF the rcradiation, which
called out the resolution, We clip as
follows, from the financial article Of
the New York Herald, Of the 10Th
instant.
We have received a printed circular,
signed by H. W. Sample. Mayor OF Keokuk,
Iowa. in which the creditors Of that city are
coolly informed that the city expects them
70 vine off half their claims. The city owes
4l.l5O. 900, t25O, 900 Of which was incurred
for municipal, and $500, 900 for inland pur-
poses. The Mayor calmly states that the
late commercial revulsion has 30 crippled
the people that they cannot pay taxes to
discharge the city . obligations and for The
benefit Of refractory creditors. who might
object to being openly cheated, he takes
care to add, in the largest capitals, that
Our debt now nearly quadruples the limit
allowed by our State constitution, recently
adopted, which provides that no city,
county or municipal corporation shall here
after incur or create an Indebtedness, the
aggregate amount Of which shall at any
time exceed five per cent. Of the true value
0f the taxable property Of such city or
county.
The Mayor goes on to say -
1t must he evident to all that our debt is
much too great for either debtor or credi
tor. 1t must therefore be reduced within
practicable amount. at least one half, or
within $500, 900, by a transfer Of our rail
road stocks This amount our people would
be willing to shoulder, aud though u bur
then fully equal to their ability to carry,
yet they would resolutely undertake to pro
vide the means for promptly meeting the
Int Int md ii n
yearly sinking fund for the liquidation Of
the principal We therefore can offer moth
ing better than the transfer Of said stocks
for the liquidation of portion of our in
debtedness; and the balance Of our debt We
propose to fund by an issue of other bonds
bearing ak per cent. interest. 10 the event
Of such an arrangement the new class of
bonds which would be issued would be our
only debt. and that debt would be fully
guarded against any increase hy the pro
visions Of the pretent State constitution
The new bonds would. therefore, be more
available aud OF more real value to the ere
ditor than those now held under present
circumstances.
The Herald concludes is article
with the following fling at the reputa-
ton and credit OF all the cities of the
West.
I'VE submit that So cool and deliberate an
attempt at Reputation has seldom seen the
light. II the city of keokuk is to be taken
"a u type Of Western cities and il the NOR
als which prompted the above circular are
those Of the Western people generally, we
fear the Western merchants will find it har-
H. Al - 700
the money they will need this spring -
The agents of the city Of keokuk will
be here from the 10th to the 30th inst,
to explain their modest proposal 10 the
creditor
With the general sentiments Of the
resolutions offered bv Alderman Wash
burn with reference to the matter, we
most cordially agree. They are cred
liable to him as their originator, and
the Council did well when it adopted
them. A disposition to pay our own
debts, and to relieve the city of Dav
export, as well as other cities of the
State, from the odium attached for The
time to western securities, by the re
pndiation Of kcokuk, is extremely
proper but in this connection while
We thus strongly dlsapprove of the ac-
ton Of Keokuk, it is we'll to remember
that we, ourselves, are not yet ont OF
the woods. The interest on our city
debt, which like that Of Keokuk, ex-
ceeds the constitutional limit, has only
been met by borrowing money at a
high rate Of interest, and by "appro-
priating" large portion Of special
fund set apart by the people, for the
construction Of City Hall and Court
House. 1t is well to bear in mind the
fact that if our taxes cannot be collect
ed with more readiness than hereto.
fore, We also may be driven not only to
adopt the course Of reputation taken
by Keokuk but to suspend payment
and allow our paper to 60 to protest
In accordance with the sentiments Of
the resolution, we trust that all legal
and proper measures will be taken to
preserve the credit Of our city, and
show to the world that Keokuk is the
only blot upon the good faith and cred
it OF the State but we here enter our
pfteet against the borrowing Of money
q high ftes to pay our interest, OF
! any further ssp prpriations" Of monies
Get apart for specific Purposes. In all
! reasonable and proper measures to pre-