The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-09-27
VOL. Vino. SO5.
COMMUNICATION ON THE FINANCES =
" BEING REPLY OF THOMAS SWAMI, MAYOR,
To 4 Resolution OF THE TWO BRANCHES OF THE
IITX CNITNCII.
MAYORS OFFICE, |


MAYORS OFFIcE,(
Baltimore September 18th, 1860. !
To The Honorable, The Members Of the First and second
Branches Of the City Council:
GENTLEMEN Il have the honor to acknowledge the re-
cept oyour preamble and resolution of the 4th instant
in the following words, viz:
recent public meeting of portion of the citizens of
Baltimore assembled for political purposes which is cal
culaed convey unfavorable and erroneous impress
sion respects the financial condition of the corporation
therefore be it
'.Resoired by both Branches Of the City Council of
Baltimore That the Mayor be- and he is hereby request
ed to transmit the Council early possible state
the Indebtedness of Incorporation, together
its relative position as to the past and present"
This resolution, informed, refers report made
recent occasion by committee consisting of Messrs
George NJ. Gill, chairman George W Brown S. Teak,e
Wallis, Charles Webb and Felix McCurley, of which the
following is an extract:
The stock Indebtedness Of the city on the
Oath January 1850 amounted to. s14577 295 IL
To this amount must be added the guar
antee for the Parkersburg Railroad... $500 600 90
The city water debt must probably be increased and
there must also be added debt for new City Hall,
other the Amshouse and another for special appro
priaons beyond the estimates Of the Register another
for the floating debt and another for the purchase, i'm
provemen and support Of the Park the first cost of
which is about 100000.
adding these items together, the for which Bal
tmore is must soon become responsible may be set
down at not less than twenty millions of dollars.
THE population of the city is about 22O 900.
THE taxable property within the limits of direct
ton amounts to Sl3l 052504 The amount required for
the expenses of the city for 1860 according the Regis
JI.Jf.
Thus one per cent on the taxable property even it
could all be collected, which is far from being te case,
would not suffice to pay the expenditure for the year
1t is computed by the Register that but six tenhs of
tax he collected during the year for which it is levi
ed, and much is ultimately lost.
at true that the interest large part of the city
debt is at present paid by different companies and
never have to be paid by the city ITSELF but with
this abatement very formidable debt remains and the
annual expenses which, by reckless extravaganza,
increasing yearly, require the hand of reform. Heavy
taxation is it does not meet the expenditure and
the deficiency is yearly increasng.H
There subject connected with the duties of this
Office which, for three years past have devoted my
with earnestness the finances this city
When assumed this trust in 1856, Notwithstanding the
marked improvement which had been wrought by nv
predecessor found its finances in most unsatisfactory
state Its securities greatly depressed. Large is
sues of floating obligations were seeking negotiation at
heavy rates ofdiscoun and mechanics and others, into
whose hands they had fallen, were daily calling at the
Mayors Office to ascertain whether something could not
be done to make them available. 1t was no fault of my
immediate predecessor that such state of things existed
In April, 1855 after Mr. Kinks into Office the
Register of the city communicated to the Council
dton Of the finances which was well calculated to excite
alarm.
felt by to the ability of the city to meet the
crisis which it involved. During the four years my
administration the rate of taxation has ranged at
rage Of per cent, 100 cts. the $780, 1t in
cordance with recommendation in one of my annual
messages that the City Council passed resolution limit
ing the expenditures Of the corporation this standard
found that it compared favorably with the average
adopted in other cities For exampeIn Boston the tax
for the present year is 93 cents; New York 81 6S in
Philadelphia 81 IS. These assessments made it is
bases
to vary the statement
much heavier rate of taxation prevails in most of
the Western cities-reachng in instances high
rs two per cent, and even more. The of
city government will show n reduction, if am not mis-
informed upon the annual disbursements of of her
sister citi Boston, this year. with population not
great raises by taxation s. 63l 81 Her
aggregate basis of assessment is S276 63399OO
THE AGGREGATE LIABILITIES OF THE CITY.
The total liabilities Of the city of Baltimore, including
endorsements, will be found comprised under the follow
ing heads
Durnosas. el0o e6
Internal Improvements .........,....4 1868 2l530
6O7542l
Cumberland Valley Railroad. ad............ 5O0OOOO 90
@ '' 2oOOOOOo 90
Northwestern Va, R. r. Co........ .... 15O0 900 90
Baltimore and Ohio r. r. loan 900 600 90
Total slG,774, ,sS9.l7
Against these there is an aggregate sink
Reducing liabilities the city total of Is 23 OO3 80
inns should be further reduced by value of city proper
ty, estimated at not less than sSOO0 900
1t may be estimated that every above enumerated
with the exception of the iai (contractel for nv nv
predecessor and that portion of the water which
spPerains to the new worksthe most valuable and pro-
ductve of the assets of the ctyhad been contracted
fore assumed the duties of this Office
ITEMS OF CITY YINDEBTEDNESs-THEIR ORIGIN yALuA-
l. The item of public miscellaneous purpoes,,
comprises variety of disbursements brought together
under this general head commencing far back 1917
and running to 1923.
2 The debt incurred for internal Improvements com
menced more than quarter Of century ago. and
prses various appropriations made by the city differ
ent periods OF her history The names of of
most useful and distinguished citizens associated with
the origin and increase of this debt The held by
the city in the Baltimore and Ohio Railroad Company
amounts to S3500000, upon which dividend of six per
cent was received during the last year. and may
peced regularly hereafter. The present market
this stock is So cent of its value Should the
city deem it prudent advisable she be reimbursed
to this extent. The SIS same company
was granted upon the application of President Harrison
during the administration of Mayor Hollins It can
hardly be presumed that the responsibilities assumed by
the city for this great work is likely to result in
g. The Court House, stock debt originated repairs
to that building and in liquidation of certain claims OF
Baltimore county under ordinances passed 1885 and 1885,
and subsequently in 1858.
a. The purchase the old water made by the
city in 1854, at cost of s1,350,O00. When into
the mayoralty various plans pending looking
increased supply of waer-from different sources The
GunpOwder scheme-involyng expenditure of at
least SO 000had passed the Council and was
not without its advocates in the community at that
time. There also other schemes in agitation The
waters OF Jones' Falls seemed to me to offer the only FEAST
BILE plan, within the compass of the cys finances In
order to disembarass the subject of the condemna
uons oil property previously made, looking to other
sources of supply, had to be abandoned.
The cost of Mr. Shades plan, subsequently adopted
will not exceed So 600 reaches that amount The
work has been pressed forward with the proceeds of the
ctys bonds at high rates, compared with other
ties of similar character Not bond has gone into the
hands of contractors The revenue of the has
ready reached limit of $50 ooO The supplies soon
TO be brought into use, will produce revenue beyond the
interest upon the entire There item prop
erty owned by the city which promises certain and
remunerative return. So far from involving risk it is
believed that the city might realize large profit upon
these works. at rates of charge for her supplies
exceeding those which heretofore prevailed have
not doubt that company could be formed to buy out
the right Of the city at heavy advance.
The ordinance authorizing the guaranty of the bonds
of the Cumberland Valley Railroad was approved June
II, 1882 The road has always paid its own interest
o. Before assuming the duties of the mayoraty a con-
tract had been made for the erection of new ia Find
ing that trouble likely to ensue-and believing that
the city had given no authority for the operations then
going forward deemed it my duty to suspend the work
The Council having sustained me in this movement the
contract was reet at considerable saving Boston
architect estimated the first plan at s450OOO Messrs
Dixon at $500 o00 and had doubt that the cost all
told, would have exceeded this last named sum- The
building, although much needed, would not have been
unaertaken Dy me at so high figure The total amount
of Indebtedness on this account stands $3.50 OOO
reducing it to 500 66 So The whole debt will he Ui
dated in fifteen years under the operation of this sinking
fund.- with the annual tax provided for that purpose
T. The guarantee of the bonds of the Pittsburg and
Connelsve Railroad commandments replaced by
the nonds of the cywas ordered by odnence of the
council IN 1888 In the first meeting which held
the Exchange, to recommend this endorsement deemed
my duty as private citizen, to oppose it. Subse-
quenty, when the bonds about to pass out of the
hands of the city, made effort arrest them on the
ground OF noncompliance the part of the company
with the terms of the ordinance. found it debt upon
the city, as had anticipated when took charge of this
office Forty miles of this road worked for the
benefit of the city, with no encouraging results Mr.
Latobe the president holds out little prospect of
better results.
s. The guaranty of the Northwestern Virginia Railroad
bonds was made under the administration of Mayor Je
rome in June, 1852 This measure received the unani-
support of the City Council
1t urged by the Baltimore and Ohio Railroad Com
pany-by the public press without excepon-and by the
whole mercantile community The interest with the ex
cepton of the half year of 1856 has been regularly paid
by the Baltimore and Ohio Railroad Company VINO be.
came the lessee. The road has cost SIS 00O the
city represents first mortgage of 81 This road
has always been considered the commercial
prosperity and safety of the city of Baltimore.
DEDUCTIONS FROM THE ABOVE EXHIBIT.
Although the items above enumerated represent nom
nal aggregate of sl6773 90l7 the actual interest paid
say 1904 S5 The interest upon z74 sO9 II thus
showing the productive character the securities held
by the city.
The only items, in this list during nv term
OF service the supply Of waer' and the new ial'
both works of urgent necessity-the former most
the latter involving bonded indebtedness not exceeding
$3.50 00O
IMPROVEMENTS PROJECTED SINCE NOVEMBER, lS56-THEIR
COST TO THE cITY-To WHAT EXTENT THEY MAY HAVE
INCREASED THE GENERAL INDEBTEDNESS.
am free to admit that during my official connection
with the affairs of this city, number of extensive
and important enterprises have been projected stated
IN my intercourse with the people of Baltimore
election that while should take in the manage
ment of the finances, to be governed sound and well
regulated economy, could shut my ewes to the
claims CT great city, occupying the favored position
upon the seaboard, and comprising population of
quarter of million Of inhabitants l could not ramain
inactive in the midst Of progress only to find
the end of my term that the great city over which
presided had fallen behind in the march Of honorable
and useful rivalry with her sister cities the appro-
priation of improvements of practical and enduring
character But affords satisfaction know the
humble part that have borne in projecting and pressing
forward these great works OF Improvement that the pub
city credit has steadily improved, until from low
standard OF depression, it has reached limit above
par
POLICE.