, 1875-09-24

toz1,rises havo proved Improbable. III other
woria, ncariy NIL of these Investments hRvo
hocn a dcnl loss; and, M tho money was
usually raised by Al, ixsso Of l'onds, thu local
DELTA havo been incraa*etl to tho nnount Of
thu aggregate subscription To raitrond and
other individual achomes. Fortunately, n,nny
Of tho States, following tho example Of ILL.,
noia. hnyc n,lopted n constitutional prohibition
OF the loaninK of tho public credit, nnh II Ia
hoped that all The Stetoa will Ito 60 na rapidly
AZ changes in their Constitutions arc male.
Tho expenditures for local improvements
havo heon Of tho nlost reckless and e1travn-
CANT nature. Thuy havo bcen encouraged
and increased t'y tho aLspnco Of my li.nitn-
tion upon municipal iudebluilnesa 1llinois
iu 1871, following tho "ran' y Of Iowa, fixed
constitutional limitation Of + per cent u,,on
tho taxable valuation OF Tho property, mud
some other Stntcs hayo since dune the ea,nc
thing. But this Limitation rcnl1y ntlmts Of
debts amounting to 10 per cent OF tho yalua.
tion, sinco both city mud county may con.
tract debts TO tho amount Of per cont each.
In the minority Of tho States, however, there
has been no limitation whatever, and the H.
eense has been n constant temptation to Of
t1ce-holders and amply improved by tho con-
tractors md unscrurnloua politicians. Not
only hnvo tho local improvements advanced
at ratio not justified by fhe resources Of tho
city, but the absence Of nil restriction has
given full acopo for pluuder. Tho only way
to check it is by imposing the constitutional
limitation alreasly existing in this aud few
other Stntes.
Another rcason for tho rapid Increase Of
taxation, Notwithstanding the ynst ss.ma Of
money borrowed, in the high ratio OF interest
which American citiea nrc raying. This
ranges all tho way from 7 to ~ por cent
rarely lower than tito former figure, and fire.
quently as high Especially in Southern citics)
~ the latter. The absence OF all restriction
hna likewise been the CAUSE Of tho e1orbitant
interest which il pnid. Tho tax-eaters havo
boon willing to borrow at any fgnro 40 long
aa they could rniae tho money required to
carry out tho schemes for improvement to
which their individual profits wero incidental.
On tho other hand, capitalists have only been
induced TO loan whore the privilege Of boz
rowing il unrestricted BY tho offer Of high
rates of interest. Tho constitutional 1imita-
ton alone can countcrnct both these tendon-
cies, and place city debts at ns low ratio Of
interest ~ public securities ought to COM
mand.
Tho remedy for tho c1travagancc whicl,
bns led to tho enormous load Of 1ocal indebt-
cducss in this country is in tho hands Of tic
people, aud there alono, The indifference OF
tax.pnyors to local political matters is mainly
| responsible for it, and revival Of interest
| alone Gun overcome it. Such revival eau.
not DO postponed, however, very long with.
out rendering repudiation imminent, and
popular government for cities a failure.
Aside from the constitutional protection sug.
| gested, the Taxpayers alone can combat the
e1travagance, rccklossncss, and dishonesty
indicated by local indebtedness Of $780,.
970,517 by organizing their votes and inhu'
enco to place tho administration Of loca
adnirs in the hands Of honest md competoni
men.