The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-06-06

THE CONDITION OF THE CITY.
The writer, at the outset, seriously questions
the assumptions that the city debt is charge
on individual property, and that ooim such
property the city is able to meet its obligations.
The first question, according to the writer, is,
can this city stand the assessments necessary
to pay its debt?
The debt amounts to s5,50O.0O0, Of which
sec. 900 is in Judgment, $4,000 more Is past
due. $4,000 more will fall due in October, and
5000, 900 more, on an average, IN each OF the
next twenty years. To meet this the city has
assets to the value of s350,0O0, part Of which,
however, is pledged to special DEBTS, and Is
mot, therefore, Immediately available. These
are, OF course, insufficient, and the debt.
therefore, only can be paid by taxation. The
property of the citizens, If taken at once, Is
perhaps sufficient. The real estate Is csti-
mated at S23, ,0OO, 900, and personal property'a at
10000, 900, and upon an immediate sale un-
der assessment il would perhaps yield the
necessary sum.
But, admitting that an Immediate sale of all
the property in town would give the means
for paving the debt, 1t must be considered that
"the city is not permitted TO become bankrupt"
The debt must be drawn with interest as it be-
comes due, and the question is whether the
city can stand the protracted taxation ncces-
sary for meeting interest and paying principal
as they fall due. According to the writer, the
city is in diseased condition, there are 100000
of tax executions, little capital comes In, real
estate falls in value, and ''the land which in
Summervllle yields seven per cent, in Charles
ton, for reason Of the two per cent. for taxes,
yields but fye." In summing up this branch
"f the subject the writer says:
The city is in competition with other places
on the seaboard, having equal advantages, and
without the stunning weight of such @ debt; and
il is to be seriously questioned, whether, fthe
debt be in fact charge On individual pro-
perty. af.a be enforced through continued
process of assessment. this city can endure to
the end in the form Of an organized political
community. The debt, when contracted, was
not necessarily mortal. Admitting individual
liability. it was not then so disproportioned to
the business and resources o. the city; but the
disasters of the war. while adding to that, have
left us with means diminished and utterly in
ADEQUATE to such burden. and the city itself.
II would certainly seem, ifit may not be dis
charged upon a surrender Of its available re-
sources, must sink under the pressure.
CAN THE DEBT BE PAID
Reviewing the schemes already published
for arranging the city debt, the writer says:
The assets Of the city, assumed to be worth
81 SOC, 900. are worth little more than the one
fourth of it: submitted to leading brokers Of
the city, they report, as will be seen below.
that their market value Is but about S445, 900.
of which s2IS,9 ,941 is Of the sinking fund, and Is
pledged to specific debts. Tie fund, therefore,
available for a reduction Of the city debt. is
not more than $4,000, and that, whatever
the discount. could not materially affect this
mass Of So, 500, 900.
Nor will the stock of the city be purchased
by the city at considerable discount: even so
small sum as $4,000 upon the market for
the purchase of city stock, however carefully
masked, would be discovered, and until eX-
hausted would elevate the price.
Nor will the creditors extend The time. The
stock falling due, will be worth its face in cur
rent funds admitting, of course, the Obliga-
ton and ability Of the city to provide for 1t.
The value Of stock not due Is little over so per
cent The creditors will not be apt to accept
stock at so per cent. for his past due stock Tor
which he can exact payment at par. The ex-
ecutors of Gibbon demanded new stock and 40
per cent. more in available assets, and the
debt, therefore, must be paid as 1t shall ma
tlre. or we must pay rulnous price for the
Indulgence.
Nor is there room to hope for fund 10 meet
accrung stock from reduction Of the city eX-
penses. 1t is not 10 be presumed that the
present party in power will reduce; 1t Is not to
be assumed that they can be turned out of
power; it is not TO be assumed that out Of
power the expenses would be less. All city
governments, for many years, have been eN-
travayant Administrations have been turned
out for their alleged extravaganza, but only to
be exceeded in expenditures by those which
succeeded them. Expensive, therefore, as
may be the present government, we have no
reason. in our experience. to expect another
less so.
Nor does the writer admit that new obliga-
tions, "non-taxaDle and payable in gold, will
be accepted by the creditors at premium"
for the bonds of the city cannot be better than
those of the State, which sell at about 80 cents.
The writer therefore assumes that
Non-taxable and payable in gold, they will
not be taken at par; taxable and In currency,
they will be taken only at rlllnous discount;
and it is apparent, therefore, that we cannot
postpone tliis debt but by sacrilices that will
render it, if possible, still more intolerable.
And none of these schemes would lessen the
pressure of taxation, while the mass Of debt In
tile background twill discourage new lines Of
buslness-wilI crush the germs OF enterprise
will force locations for necessary business be-
yond the linesn 1t is, therefore the deliberate
conviction of the writer, THAT if this debt is
to be paid, it will require the entire mass of in
dvidual property; and if 1t is to be paid by
continual assessments, it will survive that
property, and, still unsatisled, will administer
on the mortal remains OF Il ruined CITY,"
GENERAL ASSETS OF TIE CITY.
The following valuations are certified to be
correct 10y Messrs. H. H. DeLeon and j. II.
Wilson, brokers OF this city. under date of May
10, 1910:
Price Price
Securities per Par value. per Market
share. share. value.
Blue !: II GeI
X u i road
; i,nI