, 1876-05-23

cnrnestncsS with which he insists TINT MI
other pcraons shall agroo with him. We
tnhe OCCASION, however, to repeat TINT tho
system Of Issuing certificates md borrowing
money thereon Is capable of being abused by
dishonest officer. It is, moreover, nd ac-
tually praoticol for n yenr past illegal. In tho
suit instituted by Mr. HAYES, tho unanimous
opinion of tho Circuit Judges Of this county,
with m ex-suprome Judge at their head, was
to the oiTcct that tho power Of tla city to
borrow money ia limited to tho issue of cer-
tifcatcs in anticipation Of the collection Of
tn1ea already levied md specially nppropri-
atod for the current Yenr. There tho power
OF tho city to borrow money begins aud snds,
and consequently:
i. The city has no authority to Issue cer-
tihcatos in anticipation Of tue taxes Of 1876,
md uso tho money TO take up certificates Is
sued before April /, 1875.
2. Tho city has no legal authority to use
tho taxes Of 1875 as collected to meet tho
current expenses Of 1876, but must apply
those ta1os as collected to tho redemption Of
tho outstanding ccrtif1catos OF 1876.
8. Tho city has no power in 1876 to issue
certificates in anticipation Of the ,,ncollected
taxes OF 1875, those taxes having boon al
ready anticipated by tho issue of outstanding
paper.
It will DO seon, therefore, that tho author
ity Of tho city to borrow money is elenr-
ly defined by the Court, mud is strictly
limited, md that when the city goes beyond
that limitation it is violating tho law md is
suing unlawful paper.
u.-. 5roc NJ ,ro u-,nra T.. x.o,. ~.
$4,000, 600 Of old outstanding ccrtiHcatea7
Ia it by tho sale OF certificates issuod against
the taxes of 1876? If this DO done, it is in
clear and direct violation of law. In what
other way can ho tako up those old certii-
catoa savo by applying thereto, M fast as
collected, tho tax Of 1875 and prior years7
It is question which we will not now
| discuss whother the city cnn now, in
1876, igsuo certiflcnte to bo given in ex-
change or renewal of ono Issued against Inst
years ta1eB; md It is also question
| outstanding certificates rernain as ulsy aro
until they can be taken up with the money
received from tho taxes. Tho question
whether the city can isauo paper payable on
O flxed date, whether the taxes out of which
it is to DO paid arc then collected or not, was
certainly denied by the decision Of tho Court.
The outstanding paper, whether it 80 recites
or not, il only payable out of the taxes whom
collected consequently, to leave that paper
until the ta1 Ia collected will not change OF
weaken tho only logn obligation that paper
cum have.
| Tho taxes for 1876 cover the authorized ex-
penditures from April to Dec. l, 1876
Mono of these taxes will be collected before
Jnnunry, 1877, and the groat bulk will not DO
collected before August, 1877. We confess
that we do not 500 how tho city can pay its
current expenses, including tho interest on
tho public dobt, July md January, without
borrowing money in anticipation Of those
uncoliocted ta1eH, On this lust point there
is no question as to tho power of the city to
borrow the money, and, however, much the
necessity for resorting to that proceeding is
to DO regretted, wo do not SEQ how it is to be
| wholly avoided. II may 10 in part avoided
by tho suspension of several contracts, the
abolition Of several Offices, the general re-
duction Of salaries, and tho goncral reduction
Of expenditures.
Nr. HAYES in his batter says:>
The Sc, 8Uo, 600 of our temporary debt, being all
that remains nnpa!d was Incurred for 1nuney te
pay the Interest on our funded debt and for othe,
legitimate purposes, all IN anticipation Of taxc4
and within tic appropriations.
am for paying thls debt honcstly M 1t natures.
TnM TnsuuaE Is not, but Wishes the city 10 takt
tue roston Of an nsolvcns debtor, under tho falls,
assumption that tho obligation IL questionable.
This Is nothing but rcpudlatl0n In dlsguise, and
hut thtnly disguised at that.