The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-06-28

ra, two ordiuauceS introduced by me
.cto The Common Council at its last meeting
n III ,tion to the city debt are so important
= tari- relation TO tue public interests that
Lax your permission TO explain them.
Tne iirst provides that the sinking fund be
.or;awi,h placed in The condition it would
l4,~ b,en 10 had the requirements of the
t.,:ier been coip piled with by issuing to it a
c,..ttic.te of debt equal 10 the amount that
g5v.At % have been paid heretofore.
lie charter Of 1870 required that one per
a,,.. on the debt existing 1T the time OF its
wage be paid into the sinking fund every
yp,r, aud that whenever any new debt was
...a.rG the same provision should be made
t,:;.. Now the city bonds have thirty-four
y,a., 10 run from date. and one per cent. per
..aYm for that lime will pay the principal ii
i-yr.:cl, and The interest thereon rtlovested
,y",y half year. \ debt therefore secured
* : sinking fun! Of one per cent. per annum
! il r"aiity provided Tor and will pay list |!
It maturity.
propose q: once to make this arrange.
,.rt tor The existing debt; TO place the
>bhInc Fund where it would have been
,,g the requirements OF the charter been
crrylied With, ald thus at once provide for
t., i,aymcnt Of the debt at maturity. The
cs...Ic- Of 1870 requires this to be done, but it
Ia, not been complied With. The present
Cg.ucli has provided for paying the one per
,.ii. On the whole debt Tor the future the
,,,o,a>ed ordinance makes up the deficiency.
~. object and effect OF this is TO improve
-, credit of the city; 10 place it on the
,,fL" footing as other places Of its size, pop.
,..;icn, and wealth. .........e-. .-.e....r.s ...
IN not at all appreheusiye as to the
@nauut Of the debt. That will not ipjure
J.. provided il be created for intelligent and
rl.Er7 improvements. shall be perfectly
wiling TO borrow money to put into any
roper improvement; that will deyelope the
iosyu. provided the interest paid by Us is re.
paid by the investment.
The deb, OF Baltimore is uiirty:fre mii-
lions: but her six per cent. bones are above
pa! uccause ouiy Scrc!t millions of debt is
unpsoGuctive, and that Is provided for by q
roper sinkins.fund.
Ire debt OF Richmond is about four and a
II millions, which Will be four and three
quarters when the wa'er-works are COM
l.c.ad. OF tbs, | think, two millions pay
...r!est: so that, in substance, this city only
ty-s three millions Of dollars. With the
..yment of this debt 1T maturity provided
:o-, !.er credit will a! once be enhanced.
>a. is nov paying eight per cent. for
Money, Counting In the exemption from
,ilv TAX Zone and baif per cent?, she pays
;nr money borrowed from her own citizens
1.i,, and half per cent. This rate is too
Al-.. When the city is ready to pay nine
aaJ balf per cent. for money the citizen
cILHot borrow for less than ten per cent.
NJw. with high interest, Improvements can
Lyt ne made. II the city pays it taxes are
Iii ,u.r, rents are increased, the price OF liY.
iu- j raised. At the same time the capitalist
" Il not invest in buildings, because the OILY
r..v, him more than real estate. The ope-
!4ioI iu houses canno. build them, for pay
.uc 50 much interest there is no profit in
IA,m Therefore, employment for labor is
wages are craDped, and every in
du>try feels the effect.
The effect OF the proposed ordinance rela-
ting 20 the sinking fund will be to raise the
credit Of the city SO as to enable her to bor-
r1w money ut six per cent, and as time goes
on and her prosperity and Solvency become
more clearly understood, to borrow at i've
;~r cent.
When we get 10 this situation we shall not
LI,r the city absorbing all the capital here
seeking investment, but that same capital
VII 20 into buildings, improvements, manu-
:actures, any enterprises that will pay best.
NOY. in order that the city may have the ad-
vantage Of her enhanced credit, when
!: j. established, the second ordinance
by me provides that all bonds
a@:c.fler isueG shall be for thrtys
.yUr years, reieemable at the pleasuH
D. the city II any time after ten years. The
Il, q Of this wal be, first, when the present
.,>laEding bonds mature we can renew
sUt4 as We a.e not prepared 10 pay by this
t"" teu-thirly-luur hoDd. We will have to
pay probably seven 10 eight per cent. at first,
". ~ our credit appreciates we will borrow
\! RON live 10 six per cent, call in our
even and eight per cent. bonds, and pay them
~ with the money He have borrowed at five |
Nd sX per cent so likewise as TO bonds |
s,Nrd for new appropriations. We thus |
,s' control Of our debt and can re- |
,us" our rate 0i interest as fast rs |
]-r credit will furnish us with money at |
Ir>s rate. The United States Government |
III retired its six per cent. bonds, being
g." 10 borrow money at five, and her four.
..t-a.hali percents. are now rapidly ap- |
.oacliDg par. All these things enure to
~ Druetit. II The United States only pays
9ti and Il half per cent. for money, and the
ly orly six, then there are plenty OF invest
-"Lt> that could be made here that would
;: yu,t as safe aad would pay as well, and
.9ir ne SHOULD have The benefit Of Increased
,'I'al for tie great enterprises which lie in
/" Il ot Us aud which must be undertaken
III accomplished il the next few years.
BRADLEY I. JOHNSON.