, 1876-07-03

been permitted.
sM.-eN1E.--
THE PROPOSED POPULAR LOAN.
The municipality. Of Chicago has received
some hard blows within the last few days.
t was bad enough to feel that the Colyinnn
Administration had wasted the public moneys,
exhausted the standing funds, increased the
debt without making any preparations for
meeting it, and destroyed outside confidence
in the solvency and good faith Of the city.
But lard upon realization Of this came the
announcement that the Chicago bankers
would not advance the money for the neces-
sary expenditures, and, to cap the climax,
the Supreme Court announced its decision
holding Bill 800 unconstitutional and void,
and rendering S2,0oo,ooo Of back taxes
$1,000, 900 appealed and several hundred
thousand represented by taz-certifi-
cates-practcally uncollectable. The city
is out of money; it owes sew
eral months pay to its employees, who
ere suffering for want Of it; it cannot
avoid the necessary expenditures for sustain
ing the Police and Fire Departments; it Is
inhibited from adding to the bonded debt by
constitutional provision; it can no longer
raise money in the regular channels by dis
counting its ta1-levy. This is the
situation, and it must be faced
just rs it is It suggests the curtail-
ment Of expense in every possible direction,
and the necessity for this has become so i'm
peratiye that there will no longer, we think,
be an effort to postpone it. But in the mean
time the money due the city employees for
services rendered must be paid, and money
must be had to keep up the departments
that protect life, property, and public order.
In this emergency the single relief, and
probably the best even II there were others,
is the placing Of I. popular loan Of at least
81 ,000, 900 to be taken by our own people.
The rceson the bankers are not willing to
come forward with aid is, because they do
not feel at liberty to invest the money be-
longing to their depositors (Which is the
bulk of their 1oanable funds) for so long q
period as it is necessary for the city to tn1ze
It will not be safe to agree to pay of tho
new certificates before September, 1877, as
it will not be till then that the collection of
the taxes of 1876 can be enforced. But it is
reasonable to suppose that many depoators
who have money lying idle in the banks, and
earning them no interest, will withdraw it
and invest in tho popular loan. There
could really be no more attractive invest
ment at the present time. The new certif-
Gates will be Of 8 very different nature
from those now outstanding, which were
issued in violation of law, and for the pay
ment of which the holders must necessarily
wait until the city is in funds. The certif-
Gates to be issued for the popular loan will
be drawn against the tax-loTy Of 1876, and the
money used to pay the city expenses Of 1876,
so that they Will be in every sense legal. The
security will be ample, because it is pro-
posed TO issue only Sl,ooo,ooo Of them, or
about one-ffth of the actual tax-levy. The
taxes Of 1876 will be promptly collected, for
their assessment and collection will have
been made under the General Revenue law of
the State which the courts have sustained
These new certificates, therefore, will have
as ample security, in their way, as the bonds
of the United States, while drawing much
larger rate Of interest.
4 scheme for this popular loan will proba-
bly, be introduced into the Common Council
this evening. We would suggest some modi-
fcations of the plan already proposed The
rate Of interest should be s per cent instead
Of Z, as the city is in no position to
dictate terms, and as the lower rate
would fail to reach the savings banks
and many private capitalists who can make
better Use OF their money in safe investments.
It will be folly to make $1,000 the minimum
at which subscriptions will be received Such
g limitation will serve no good purpose; it
will bo in no case 4 popular loan, and the
number of subscribers will be few. Nearly
all the loans Of Franco are placed by popular
subscription, and subscriptions as low as 100
francs (S20) are received. During the War
the United States Government issued bonds
Is low as $50, and 81, 900 bonds were about
the highest, except the registered bonds.
There is no reason, then, why the City of
Chicago, in making popular loan, should
not place their certificates as low 2s $500
aud mulhples thereof. A1essrs. MARSHALL.
FIELD and GEORGE ARMOUR and other
wealthy and loyal citizens may still show
their devotion to Chicago by subscribing
$50,000 each, but hundreds of other persons
who would be excluded by Limitation Of
$4,000 can then invest their idle moneys,
and will do so. This is an important con-
sideration, and must not be disregarded.
There is no danger to be apprehended from
counterfeiting: since the certificates will be
in no sanse currency. aud each one