Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-06-08
CITY FINANCES.
Mayor FIippIn's Message on the
City Debt n the city Creditors.

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Mayor FIippIn's Message on the
City Debt and the city Creditors.
At the General Council meeting, held
yesterday afternoon, Mayor Flippin sent
10 the following message which was re-
ceived, but not acted epon, as the hour
for adjournment had arrived:
CIrT HALL, MEMPHIS. June 7, 1876.
To the Honorable General Council;
GENrs-The much vexed Nicolson
pavement scrip question, / am glad to
state, is now upon argument in the Chan
Gerry Court. | had hoped that it would
have been disposed of before this so that
an ordinance might have followed, set
ting forth some definite and fixed line Of
policy in reference to this matter. This,
| trust now, will be done in a short time.
As to our public debt the time is neat.
ing when. if possible. some basis Of settle.
ment should be reached with our cred.
itors preparatory TO the assembling Of
the Legislature ia January next. That
body, by appropriate legislation, will
certainly enable US to consummate what
ever adj ustment we may be able to effect.
The first question, il seems, is this:
What amount, including interest and
sinking fund, can the city pay annually
This sum must be determined for the
most part from our taxable values and
the necessary annual expenses of the
city government. These values for 1876
will probably Approximate those OF 1875.
Ascertain the annual amount which can
be applied to the retirement OF our in
terest and debt, fix the rate, and these
will indicate the body OF the debt. We
must not only have the will but the
ability to pay the sum determined upon,
and to carry out in the utmost good faith
any settlement made with our creditors.
II they surrender the bonds nov held it
will only be because it is to their inter.
est to do so, aud for the reason hal their
substituted securities will be Of a higher
value. We can, if new bonds with coupons
are issued in lieu OF the ones now held
either upon a reduction Of the rate OF
interest or the face value of the bonds,
secure them in the amplest tanner. Let
the coupons OF the new bonds be receiv.
able for every species Of city indebted.
ness, including, of course, every species
of city taxes. The taxes annually
levied will Of necessity exceed by sew,
veral hundred thousand dollars the ma.
turing coupons. Such will be the de.
mand for them that they must always be
near or at par. At the same time, and
under the same Act Of the Legislature
authorizing the issuance OF the new
bonds, AMI as o part OF the contract will
the bondholders, let it be enacted tina
the city rate Of taxation should never
exceed a certain maximrm standard
!, This will prevent municipal extrsva
ganee. And, at the same time, let an
other clause be incorporated in the Act
stating that the city shall issue n,
more bonds. II provisions like thes,
we're engrafted in the Act author
izing the funding Of the presen
bonds into new ones, it would max
. the coupons of the new bonds absolutel,
, self.collecting. But for the exchange o
such undoubted securities it is of cours
expected that concessions would b
made by our creditors, but to what eX
. tent we are now not able to state an
cannot know except upon a conferenc
with them. II any other feasible pla
5 by which we may the more easily pa
3 our debt can be devised it should by a
means be adopted. While tits questio
has doubtless undergone much though
c and investigation at your hands, still i
order that some definite and deeisiy
action be taken, and this at an earl
day, l would suggest hat there |
added to our Finance Committee 9th,
members Of your body, not exceediI
a five in number, who will act in come
ton with said committee, which will r
j. port their action at an early day upo
, this most important question. This r
port should indicate the basis Of settl
; ment, and when adopted by the Boar
) it should authorize its contamination.
d | shall use in every way my best c
10 forts to adj ust this question so vital
the present and future interests Of II
: city, and would most gladly avail myse
Ie of the experience, good sense and pra
-" teal knowledge Of our city affairs Of Il
members Of your honorable body.
think it is time that steps were taken
e the matter, so, if possible, to come to
y satisfactory understanding with our ere
itorS at the earliest practicable perio
% for the reasons heretofore mentioned.
Respectfully,
y j. FLIPPIN, Mayor.
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