New-York tribune., 1875-09-18
TIE DEBTS OF CITIES.


THE PROPERTY OWNER.
To the Edttor Of The Tribune.
SIR: 1t is we'll that we celebrate with rejoicing
our centennial anniversaries. Better yet VIII IL Do
if at the same time we consider how far we have
neglected TO hold that vantage ground when heVS-
lutionaTy heroism gained for the Republic Better
yet will it be if our Joy is tempered Will candid SELL
examination, and with patient search for methocs
by which better results may De reached Self-goV-
ernment az we have used or abused it, has proved
to us i'll some respects less blessing than cirse.
He is lot the true friend of that system who shuts
his eyes TO the fact. Nor shall we best honor The
memory OF Revolutionary sr,s by insisting that ali
the methods which served for the scattered and
mainly agricultural population of l77G are neces-
sary the best suited u the needs Of 1876. Hoping
to contribute something to that sober inquiry which
BELTS the tno ask attention first to some facts re-
spccting the cost OF fgoycgnemt in It's municipal
branch.
Monarchy and arstocTacy are called expensive
luxnries to Great Britain. within the last five
wears our local officials have become luxury stili
more expensive. County and municipal governments
now probably costs lis more each year than tho en-
tire revenue of the British Crown. The revenue OF
Great Britain is about r37d,33o 900 yearly whe
tha; of the United States il only T2S3 3,i757o1. But
tho Whole amount raised by taxation for local pnr-
poses in Great Britain is about Sl1o930,0oV; IN
England and Wales G22, ,957 .0Il: IN lrcland, -
gOj, 30 and in Scotland, f2,323,1oJ Thus the to-
tai cost Of governing Great Britain with ali iiS eX-
peGsivc luXuries, is about rJl7,2G0,OOO. Inc cost
of State and local government in this country, as re-
ported IN tho census returns OF 1870, was T2soo9l,-
600 yearly and had this not increased the aggregate
cost of our government would now be about FJ1O,-
O69 900 yearly. But the cost Of municipal govern
ment has increased, and that very largely. Although
the United States has reduced itsrcyennc about $780,
OO0. 900 within five years, and lts debt from
50, ,iSO6 672, ,t27. July l, 1870, TO S@27o.932Oss
July l, 1879, the aggregate sum raised by
taxes of all kinds has scarcely decreased at
all. while the aggregate Of state, county
and municipal indebtedness has increased not lar
from $4,000 coo. Thus we have been creating
State and municipal debt faster than we have been
paving National debt by $50 900, ,O00 yearly AID the
actual cost of our Government in all It's branches
has therefore been by that amount greater than tic
entire amount raised by taxation OF all kinds. Nor
is this all Ike Increase OF State and local debts
renders necessary an increase OF State and local
taxation to meet the interest. We shall ilnd tuat
local taxation has in rcaaed far more than ha' heen
necessary for that purpose, SO that the aggregate
cost OF Government in ali lis branches to tie people
Of the United States is considerably more than
$6 20 900 900 yearly, FIG per capita But az cost
ofSj 600 600 orabout S1Gper capita 70 The people
of the British Islands, the Government oi "rea'
Britain maintains its crown and aristoeracy' i's
church establishment poor establishment, municipal
governments. and distant colonies, its army OF
$4,000 men. its gairisons every land and is
heets on every sea. Can we boast that the cXreri-
ueut of self-governmeut has been remarkably eco
n0.ncal i'll its later wOrkingsf
GROWTH OF MUNICIPAL DEBTS.
The growth of municipal debts Is alarming Ac'
corning 10 the census 0t 1870. our states, count's.
citie9. and towns owed $SG6,G7G,000 The debts OF
the States were then $352.s66.63S, and careful
review in The Financial Chronicle OF Nov II, 1874.
showed that the State debts then amounted to
1882 G7O.5l7. An increase Of S3O'OCO,ooo OF
SO 600 900 year. il not remarkably large. In
1870 the debts of counties were TlSI,0Oo,ofo ana
at the close of last year the Hon. James c. Blaine
estimated that the county debts were still not less
than S1SO,OO0,OOO. Whoever considers that
90 900 miles of railroad have betn built since the %
census was taken will conclude that Mr. Baines
estimate errs if at all on the side of caution Al
though some large county debss lave since 1870
been transferred cities it safe to say tnat
the aggregate has not diminished. But when we
consider municipal Indebtedness very different
rate of increase appears. According TO the CENSUS
the aggregate Of city, town and ali other muneIpai
indebtedness in 1870 S32S,2 i,520. But now
only five cites-New York. Philadelphia, Boston,
BrookIvn and Baltimore--owe about S:}32oOo,OOo.
Mr Blane's estimate placed the aggregate oi NUM-
cipa indebtedness, near the close OF last year. at
500 900 900 Large As this sum s, ana though his
high reputation entities statement from hin 10
great respect, facts compel the conclusion that'
tl,rougl care not 10 exaggerate, he has named an
amount much TOO low.
Ronds of only 32 cities, quoted by The Financial
Chronicle Of June % in its list Of city securities"
with the latest municipal reports OF those c'ties'
show that their debts amount to fj2o,o3-,'- see
Table "AD But annual reports OF Massachusetts
show that i8 other cities of that State had dcDts'
jan l. OF $24 70j,360, and that the aggregate III
debte,lness of all cities aud towns IN that state was
S,042I24J-a sum greater by S36,9l4,6:j+ than
the debt of Boston, the only city OF that state IN
cluded in Table A" Again, the report OF the Sec
rotary Of State of Ohio shows that on sept !. 1871,
4 debt of 81 900, I'll owed by ctIes towns, ana
Municipalities of that State. exclusive of tie debts
Of CINCINNATI and Cleveland, included III Table AZ
Time in olv two States and 30 cities there appears
municipal indebtedness Of S17l ,457 ,O70-a sum
larger than Mr. Baines estimate for the whole
country Yet these municipalities, according 10
the census must have owed less than twOthirds OF
the total municipal debt.
The debts in 1870 of all the cities named are not
accurately known. In Table 4. however, the pres
ent debts of 81 cities contrasted Will the III
debtedness in 1870 not of those cities only, but OF
all the cities towns. and other municipalities IN the
32 counties in which those cities are situated The
whole municipal Indebtedness in those counties GER
tanly exceeded, and probably by a considerable
sum. tie actual indebtedness of those cities only
A. the aggregate debt OF all municipalities in those
counties was only $l9s S35,7ls and with TIE mu-
ncipa debts Of all other counties III Ohio and Mas'a
chuse,ts was only S2l7,6l2, ,003, while the muncl-
nal indebtedness in the whole country was S32s,-
2l4 500 it is proved thar cities and towns still re-