The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-08-08
lCoMMUNICATED.1
CITY DEBT CORPORATION POWER, AN


CITY DEBT, CORPORATION POWER. AND
RUINOUS TAXA TION
MEssRs EDITORS: ln the present condition of
things it may be advisable to determine what are
the powers OF the Mayor and City Council of Balti.
more in relation to imposing liabilities For the
purpose of securing full supply of water the
Mayor and City Council may issue certificates of
debt, to be denominated on the face Baltimore
Water Stock, to the amount of So 900 600 This
would seem to limit the liabilities of the CORPORA
ton to the of SO, 900, 600. Now it is believed
that the expenditures incurred and to be incurred
for this purpose, will not be met by certificates tn
the amount OF 5000, GOO. If this should turn ont
to be true, in what way can the deficiency be made
up? Under the existing laws only BY an increase
of the taxes. For the correctness Of this view see
the Code at page 344, and section $780, of volume Q
BY reference to the Code, page $751; section s66 of
volume 2, it will be that the Mavor and City
Council, for the purpose of promoting and efectinr
any great or permanent Improvement, NAV issue
stock or borrow money on the credit of the corno
ration, provided the amount of said stock or money
borrowed does not exceed million of dollars ex
elusive of all debts created under special acts of AS
sembly Under this provision the power to create
stock or borrow money is limited TO one million
of dollars. 1t is true that, for wears mast tbase
limitations of responsibility have, in a great meas
ure, been disregarded, but still the power to bor
row money cannot be legally enlarged The float
ing debt of the corporation is believed at this time
to be large. We have to pay for the enlargement
of the Jail, for a Aims House, for costly Civ
Hail. and for a Park. Beyond the borrowing
by stock or otherwise of $1,000, 900, the corpora
ton cannot 90 for any of these purposes nor for all
combined. If more than n million be wanted in the
shape OF loan for the floating debt Park. Aims
House, Jail, and City Hall, then the surplus can
only be raised by direct tax.
The time has for these matters to be lifted ruv
and completely. These things are now thrown ont nv
way OF suggestions. 1t is hoped that some parties
who are well posted, will take up this subject
and let the people know exactly how matters
stand. 1t may be that without a complete chanpe
in those vino may control the city government we
will never know exactly how we stand. floating
debt sometimes proves to be very troublesome and
particular if the power to fund it does not exist
Jail debt would at first appear to be of but
little consequence, but it may be swollen into A
very considerable item-an aims house debt NAV
seem to be necessary but it, toe, under the zeal
influence of favoritism may prove to be a burden
The building of public schools and their repairs; the
building of market houses, and their repairs: the
paving and repairing of streets; the erection and
repairs of bridges, and such like things may be I'M
avoidabe, and if the sole object of them be to pro-
mote the public good, the public must paw for
them, and that without grumbling. If, however,
the public good becomes mere secondary consid-
Grafton, and the real object all the time made pa
tent be to give good fat jobs to public favorites and
| to maintain party supremacy. then indeed the
| public ought to resist, and stop the progress of
| plumber. park debt may have with it no terror
particularly ii there be fund set aside to meet it
and which we are told will suffice. 1t may be that
this fund Is one that may greatly vary, and it
arise out of transaction illegal, and so found
ed upon usurpation of power, that any citizen who
may lind it to his interest to resist, may
fully do So and thus destroy the fund. The par k
debt will still remain, after the means of liuu-
datlon are gone and destroyed. a City Hall debt
may be recommended because of the facility of Dor
rowing money from a particular fund.- and thus
making the debt perpetual. 1t viii be found how
ever, that the limitation of the million of dollars
will here operate and lift does will not the payment
OF the interest be severely felt. We may ask
if the Mayor and City Council of Baltimore have
not transcribed their powers in the various schemes
they have adopted and what is likely to be the eff.
feet upon the people of Baltimore of their various
measures? 1t is impossible, doubt, that taxation
! must be imposed to ruinous extent and the only
relief which we can hope for will be found if it all
In an application to the Legislature to increase the
debt and liabilities of Baltimore, swollen as they
already are, beyond all reasonable bounds.
| BALTIMORE.