The Council Bluffs nonpareil. [volume] (Council Bluffs [Iowa]) 1857-1867, 1860-02-04
THE ACTION OF THE CITY COUNCIL ON
THE INTERE EST DUE ON ITS BONDS.
IL lQSG h. "a.


In the year 1856, the City of Council Bluffs
issued $40 900 in Bonds of $1,000 each, bear
ing 10 per cent. interest, payable annually
son the lst day of October, Mt the Corn Ex-
change Bank, New York. For those Bonds
the City received $500 in cash, at least 5
per cent. more than the market price of
such securities at that time. The money
was paid out on the Streets Of the City, and
we are now enjoying the benefits of the i'm
provements. The interest for the years
1858 and 80, due October LIST, 1859, now
four months past due, the City failed to
provide for. The holders of those Bonds
'haye been waiting patiently for four months
FOR their pay, not even protesting the paper
keeping good our credit, and waving their
rights in the matter. The City Council had
IN adjourned meeting to consider the mat
ter-and voted down resolution which pro-
vided the only means within the City's pow
er to pay the debt. The resolution nropos-
ed to place in the hands Of the Finance Com
;mittse Cassidy, Lewis and Rogers and City
Recorder, $3.50 in City Warrants-to be
negotiated on best possible terms for cash,
not less than IS cents on the dollar, to pay
the interest on City Bonds, amounting to
$1,000, and the interest accruing on that
amount since due, Oct. lst, 1859. Thus lit
tcrally regulating debt to which the CT.
ty's honor and credit, as we'll as its obliga.
CATION, is staked. Two members voting
aye aud seven nay, and one absent. And it
goes forth to the world, that Council Bluffs,
who have just voted to issue So, 900 in
Bonds, repudiates the interest on $50, 0OGs
and forces the parties holding them, to sue
Or take $1,000 in City Warrants, worth to-
day, $3.50 in cash. Such q transaction as
this, no member Of that Council would dare
enact with his own creditors, while he had
the ability or resources equal to the City's,
TO pay. An action, which, if persisted in,
forever ruins the credit of our City abroad,
which, up to this time, has stood number
one. The question naturally arises, what
course is left n creditor of Council Bluffs ?
Only onc A suit in the District Court
Judgment against the City, with interest
and cost on debt, must, Of course, follow
and then the City Council is required by
law, to Immediately provide special tax
for payment of judgment or the property of
the "City Fathers" is held for the debit
Now will such course in the end cost the
City 81 $50, or not? There can be but one
answer to that. 1t will, and $500 added to
it. The arguments used against adding $3.50
to make the $1,000 in cash, and meet our OBJ
legations, and save our credit, was its ruin
Gus extravngance, its bad precedent, and
that the money obtained on the Bonds, done
the City little or no good. The first objcc-
tion is answered, for in the end, we have to
pay debt. cost Of collection, suit, interest
and all expense of seperate tax added. Its
precedent amounts to nothing, for the first
interest was paid in similar manner, and
now, every bill paid by the Council, is from
50 to 100 per cent. above cash price for the
same articles or work. The last was after
squandering the money obtained under false
pretenccs, We make the lender liable Ier the
deels and acts Of the borrower. One
Councilman asserting, he would spend $40
ia collect one, but not one cen. bonus would
he vote to enable the City to pay an honest
debt. He was willing to tender $1,000 in
City Orders, to pay $1,000 that called for
gold, while Orders are hawked about our
streets at IS cents on the dollar; be was
willing to pay loo per cent. in addition to
cash paid on old bills on work done for the
CITY, but was not willing to pay the City's
note in City Orders, with Is per cent. added
to make them cash. A majority of the
members who voted to literally rcpudiate
m honest and just debt, also voted, short
TIM since, to add 49,, 5000 to debt, al
ready contracted, and in similar manner,
upon which they cannot or will not pay the
interest, let alone tho principal. To do
item full justice, they tried to hide behind
. decision Of the District Court. That
City cannot issue Orders at their cash val.
No to pay note or coupon, while their right
to order the issue of Orders to any amount,
Is not questioned. They stullifed them
selves on tbs count, by Offering to issue as
q compromise, at IS on the dollar. Con-
aista ncv thon art \ laval