New-York tribune., 1875-09-27
CURRENT DISCUSSION.
MUNICIPAL INDEBTEDNESS SHOULD DE LIMITED
LAW

MUNICIPAL lNDEBTtDNfsSH SHOULD DE i.IMiIi-D
BN LAW.
From The Boston JOurHGl
Our readers are somewhat familiar with
comments upon nu'icipa, .IdeJedn's for nearly ie-
cadc has pacd since attention u debt and taxation and
the evils Of dscounne the future INST lersistenty
euo. ecd. During all this time only two papers nave
met eye bearing upon this imp rtan subject, viz
the address OF thc lion james g. bane ana the present
articc. Al the recent OF Legislature the Hon.
Edward j. Pierce handled this subjcat VITA such skill,
and convincing in his argument that It the
daty %; tine state sicp IN and mt tie deb;cOntrac
ing power o! muricipItas, tet the law regulating debt
and taxation w.1 PASSED Ihs law, 1t Ii hopei, VIII
check that suicidal policy adopted by many cities and
towns OF paying clrrcnt expenses ana in"u!sinS
in eXtrayaSan expenditures by Zorro wing money whicl
unborn generation is expected to pay. Statistics
Of value unless the facts to be deucei from them
useful in showin past errors, which ougt 10 serve as
guides Tor the future. II Is In TIC City Council an town
meetIug that minicml economy ought 10 nave us
origin le noisy denlgoguc VINO pays but small tax
lldsincs that lie has bestowed great h0nI ny Y0tinS Tor
an expenditure, not dollar Of whch VIII come from me
pocsets nf aiee inaorly of MS constituent lie has
not the sdSuiiy to LOOK little way aheah ana see that
the rch a can fold MS tent and depar! While tue poor
and even the water which he drinks costing more be-
cause the indebnss Of tie city Las been IQtcod Tue
poor ere tlas lobbtl by the poorer ieglsl&or VINO
supidly imagines that political economy CONSISTS III
voting large supplies and cxtvagant appropriations FOR
the pcneH of the iabOring classes
AN ENCOURAGING STATEMENT OF TIE DEBT OF
BALfi iORE.
From The Baltimore Gdzsfc
In stating the Indebtedness Of prominent cities
Mr. GrJsycneI commits winch could only
Aye resulted fIom ignorance Of tie true icts in the ease
In tie tabar statement pts:sed the total ndcbieI-
Of Baltimore is gyen at 320o57 72j, and from tins
is deducted tie value Of the ciys sinLiag funds wAich,
as stated by Mr. Grosvrnoi, nmount to $7,726 226.
Making the deaGction the erroneous conclusion is
reached that the net indebtedness OF Baltimore Is
.43o9 i90 thus placing tiat city fifth in TIE List with
debt only exceeded ny those of NewYork Philadelphia,
Brooklyn. and Boston. such a statement circulated
throughout the country in jonrial of fnE TRlarNE's
standing must result IN gross Injustice ana iJury
to the Monumental City, and Tor this rsason ,;ai
it is rrue that Balf.more's tot; indebt-
clness is a. stated 725 ii shoull b remembered
that tLs amount merely nominal in other wos bu,
side OF the ledger. Tie tue value Of the sinking
fun TO be deducted from the gross Indebtedness is
$J36,j6G. II may be stated incidentally that this
,non for itself and tic city annual income OF
S5ji 1913 80. The entire deDt, minus The sinking funds,
SO, l59 wc were there no otlcr deductions to
instruction of The TRIBUNE and It's correspondence we
proceed to .ure Ia the general chracteruf Bal
geAcral information, especially in the Light Of
INT diselsSicns that tils ciy ds,o largely
way. the Guys present interest in the road com
prises $500 0f i.s oarita stock, which Is
ceiyed an annual dividend of ten per cent or 2oOoO
which amount IS applied 10 nc payment "i interest on
the municipal dcDl. The market value OF this stock is
not less tn *5GS7h00, and II is obvious that this sum
as an available asset should deducted from Ae city's
liabiitIes otner words IL productive invest
ment. Again annual income Is received from rentals
on real estate Owned ny TIE ely, etc. amounting 20
Sll0077 IL IL readily at to show the citys true
financial condition tins amount capitalized al six per
cent II s3lG22, should he set opposite the ctys liza
bies. TO inis should he added $t,G00,0O0 duo
ior a mortgage formerly held by the city on
the Phtsbnrgn and Connellsyille Railway. together
ranies 10 the vaIte OF rs sDD Aside from what is here
called prodctye iHyestnents Interest is provided on
laige part the city dcb which Incurred i'll
tending further aid 10 e Baltimore and OHIO Company,
Railways, in all $J,6i7,OO0, of " len Sj,OOO,00O was
loaned to baltimore and Ohio Railway. As security
for the gross amount named, railway mOri cages are held
by the city On S5,0J0000 of tine debt interest is
provided by receipts rom watr rents, after paying the
current expenses OF this department The remaining
1t. is the Park bonds amounting SOB 566 which
interest Is paid ny the 'i'y railway companies.