The central Presbyterian. [volume] (Richmond, Va.) 1856-1908, 1874-12-02
Municipal and State Debts.

speaker DIANE, IN an ADDRESS receuIly
delivered before the Northern Wisconsin
Agricultural Association, submitted body
of statistics showing the aggregate of mu-
nicipal and state debts in this country. The
sixteen cities of the United States which
have each population of more than 1OO,-
600 and an aggregate population of 4,5OO,-
600 owe municipal debts to the amount of
$3.50, 100000, or about $50 per capita of
their entire population, nearly one-third OF
which is the debt of the City of New York.
The twelve cities that have each population
exceeding $4,000 and less than 10000,
with an aggregate population of about $780,
600, owe 10000, 900, giving $40 per capita
for the whole list. The ffty-three cities
having each population exceeding 10000
and less than so, 900, with an aggregate
population of about l, 800, 900, owe SIS, 0O0,-
900, or $50 per capita for the whole. The
one hundred and FIVE cities and towns that
have populations between 10000 and 20 OOC
each, with an aggregate population of nearly
1,400,0 900, owe something over $95 100000,
or about $22 per capita for the whole. Add.
ing these cities and towns together, we have
1856 cities and towns with population exceed.
ing 7,000,000 and an aggregate municipal
debt of about $3.50, 100000. Add to this
the debts of towns having less than 10, 0OC
inhabitants, which Speaker Blaine estimates
to be less than $50 600, 900, and the total
municipal debt of the country amounts to
about $3.50, 100000.
To these municipal debts proper add the
county debts, amounting to about $3.50, OOO,-
600, and the state debts, amounting to about
$500, 900, 900, and the aggregate public debt
of states, counties, cities, and towns in the
United States is 81, 40 900 900. The an
nual interest on this debt, reckoned at 7 per
cent. per annum, is $79,800,000. The only
way in which the principal and interest of
this huge debt can be paid is by taxation.
The debtors are political bodies, and not
business corporatlons-rich only in the pri-
vate wealth of the people and having no
resources except as they are derived from
taxing the people. The tax burden for the
annual interest and for the ultimate payment
of the principal is and will be heavy bur
den for the people to carry, especially when
we add all the national taxes and the taxes
to meet the annual state and municipal ex-
penses. Speaker Blaine expresses the opin-
ion in respect to state debts, amounting to
$500 100000, that "there has not been
realized on the average fifty cents of palpa-
BILE, permanent value for each dollar raised
and expended" There is no doubt that the
borrowing policy by states and municipalities
has been carried to great excess, and that
it has led to much extravaganza and improv-
idence, and sometimes to gross frauds, in ex-
penditure. The people have not by any
means received full and fair equivalent for
the debts contracted against them.
1t is time to call halt in this borrowing
system and place the legislatures of the sew
eral states under such constitutional restric-
tions that they cannot mortgage the prop.
erty of their constituents or authorize mu
inequalities to run in debt without having the
question first submitted to popular vote
The power of voting appropriations and that
of levying taxes must necessarily be left
almost entirely to the discretion of legisla-
lures and they will be far more likely to
act discreetly in respect to the former if they
must provide therefor by a tax levy. There
is great financial wisdom in the principle laid
down by Thomas Jefferson, which has often
been quoted and which we reproduce as fol-
lows:
"Never borrow dollar without laying a
tax at the same instant for paying the in
terest annually and the principal within
given term, and consider the tax as pledged
to the creditors on the public faith. On
such pledge as this government may al.
ways command, on a reasonable interest, all
the lendable money of its citizens, while the
necessity of an equivalent tax is salutary
warning to them and their constituents against
oppression, bankruptcy, and its inevitable
consequences revolution"
The pay-as-you go system for ordinary
expenses is always the sound rule; and for
extraordinary expenses the tax system, as
by Mr.. Jefferson, is equally sound.