, 1875-04-25
--~--.IIIIIIIIIIIIIIIIIIIII.III
Year.


be understood when it is known that the tax
1ev7ed annually is merely to cover the amount
appropriated for that year; that the fiscal
year begins April !, and the taxes to meet
the appropriations for that year are not due
until December following, and aro but par
tally collected until July or August Of the
following year. To illustrate: The fiscal
year 1874 ended March 81, 1875; the taxes
for 1874 were due in December, 1874, have
been partially collected, but their great bulk
will not be collected until July or August,
1875. In the meantime the appropriations
for 1874 have been all expended; when the
city has no money it Of necessity has to owe
its creditors, issuing to them either war;
rants on the Treasury or certificates Of
indebtedness. As the city has no resources
save the proceeds Of taxation, and as the ap-
preparations invariably equal the tar levied,
the nmount of uncollected taxes at the end Of
the year is fair estimate Of the amount Of
the city Indebtedness, properly payable on
demand, butremaining unpaid The amountof
the floating indebtedness Of the city on the LIST
of April, was, therefore, substantially Sc, 750,-
600, less so much of Inst years appropriation Us
had not been expended. On the 1st Of April,
1874, the amount Of the uncollected tax was
about S., 500, 900. There has been, therefore,
large increase of the uncouected ta1, Us CON-
pared with last year.
The misfortune Of Chicago is that her rev
enue to meet her appropriations is not col
lected for several months after the expiration
Of the year in which the money has been ex-
pended. In other words, Chicago e1pends
her money one year in advance Of its collec-
ton, and any failure in the collection leaves
her with floating debt equal to the defcien-
cy. This floating debt is largely in the form
Of Understanding obligations
The failure to collect thetax, therefore, sub
jects the city to the necessity Of borrowing
tho amount due at interest, nnd hence the
deficiency is constantly increasing from year
to year, and the charge for interest increasing
proportionately. .
We call the attention of the public to the
fact that the city is 1aboring under serious
financial embarraSsments for the want of this
uncolected revenue, The $500, 600 and more
due on the warrants of 1869 and 1876, which
warrants were destroyed BY fire, may be con-
sidered as lost. But the taxes of 1871, 2, 9,
and 4 ought to be paid. The power Of the
city to coerce the collection of personal tax
is deficient, and the payment Of that tax de-
pends on the voluntary action of the citizen.
Over one million Of dollars of this tax is due,
and for the want Of that lawful revenue the
city is paying hundred thousand dollars
year interest on temporary loans. For much
Of the unpaid real-estate taxes Of 1879 and
1873 the city holds certificates Of purchase at
ta1- sale, but these are not available as money,
and to supply the deficiency in therevenuethe
city has to borrow money. There is 1ooseness
in The law regulating sales of land for taxes
which renders it unsafe as On investment to
purchase at such salos; so the city has to buy
in the property. The legality Of any title
thus acquired is so questionable that no per-
son is under any apprehension on that score.
Still, taxpayers should understand that in
the end they have to pay the penaltyon these
tax certificates, and have to pay in addition
taxation to meet the interest on the
money borrowed by the city to meet its cur
rent obligations.
The tax-sales for the taxes OF 1874. will
take place in few months, and the prospect /
is that the amount Of unpaid taxes for which !
the city viii have to take certificates Will be
greater than any preceding year.. This
whole system Of paying taxes in this city, 1
owing to the loose laws, the imperfections Of
assessments, irregularity of proceedings, |
technicality Of the courts, and carelessness |
of collectors, officers, and propcrty-owners,
has fallen into slip-shod, uncertain condi-
tion,~ which is fnst involving the city in
financial confusion. :.-... .>.
Even if this whole sum of Sc, ,750, 900 of
back taxes were collected, it would not dis
charge the unfunded liabilities of the city
and meet al the outstanding appropriations;
there would be large deficit still, the
growth Of several years expenditure beyond
income received This thing cannot 20 On
forever. There is limit even to financial
6ting; and, II citizens will not pay their
taxes, than the city must IN tina como to
! ataaa-stil1 Tks ,raeties ot TIN cdunaa
- ~~ *1 ''-'f' - &'-