Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-06-09
THE CITY CREDITORS.
Mayor F1fppin Advocates a settlements
with the B0ndhOlders, and Re-
cOmmends Legislative
Relief.

At the meeting of the general council
held on Wednesday last Mayor Flppin
sent in the following important message
on the subject Of city finances aud city
creditors. The message will no doubt bs
acted upon at the meeting Of the general
council 10 be held this afternoon st the
city hail.
Cry HALL, MEMPHIS, June !, 1876.
To the Honorable General Council:
GENTLEMEN-Ths much vexed Nicol-
son pavement scrip question, 1 am glad to
stale, lis n0WupOn argument in the chan
cery court. had hoped that it would
have been disposed of before this, SO that
all 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 nearing
when, il possible, some basis of settle
ment should be reached with our cred
itOrs preparatory to the assembling OF
the legislature in January next. That
body, by appropriate legislation, will
certainly enable US to consummate
whatever adjustment we may be atls to
effect. The first question, it seems, is
this: What smouLt, including interest
aud sinking fund, can the city pay an.
Iually? This sum must be determined,
for the most part, from our taxable values
and the necessary annual expenses of the
city government. These vaiues for 1876
will probably approximate those OF
1875. Ascertain the annual amount
which can be applied to the retirement
Uf our interest and debt, fix the rate,
and these will indicate the body of the
debt. We must not only have the will
tut the ability to pay the sum de-
termined upon, and to carry out in the
utmost good faith any settlement made
with our creditors. II they surrender
the bonds now held 1t will be only be-
cause it is to their interest to do so, and
for the reason that their substituted So.
curieties will be of higher value. We
can, if new bonds with coupons are
issued in lieu of the ones now held
either upon q reduction Of the rate of
interest or the face value OF the bonds,
secure them in the amplest manner. Let
the coupons Of the new bonds be re-
ceivable for every species of city in
debtedness, including, OF cOurse, every
species of city taxes. The taxes an
nualy levied will of necessity exceed
by several hundred thousand dollars the
maturing 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, and as part of the contract
With the bondholders, let it be enacted
that the eity's rate IF taxation should
never exceed q certain maximum stan
dard. This will prevent municipal ex-
travagancs. And, at the same time, let
another clause be incorporated In the
act, stating that the city shall issue no
moro bonds. Ii provisions like these
we're engrsfted in the act authorizing
the funding Of the present bonds into
new ones, 1t would ma ks the coupons of
the new boz ds absolutely se collecting.
But for the exchange Of such undouttsd
securities, 1t Is, Of course, expected That
concessions would be made by our cred.
itOrs, but to what extent we are now not
a6ls to state, and cannot know, except
upon q conference with them. If any
o her feasible plan, by which we NAV
the more easily pay our debt can be
devised, it snould by all means be
adopted. While this question has doubt.
less undergone much thought and in
vestg alton at your hands, still, in CT.
der Ihat some definite and decisive
actio be tsksD, and this at an early
day, would ruggest that there be added
to our finance committee other mem
beIs OF your body, not exec eeding five in
number, who will act in connection with
said committee, which will report their
action at an early day upon this most
important questi IN. This report should
indicate the basis Of settlement, and
when adopted by the board it should
authorize Its consumm s'ion. I shall use
10 every way my brst efforts t. adjust
this question so vital to the present aad
fuIIrs interests Of the city, and would
most gladly avail myself Of the expert
ence, good seLse and practical knowl-
edge of our city affairs Of tbe members
of your honor able body. I tbiuk it is
time that steps were taken In the mat.
ter. 30, Il possible, to come to a sstisfsc-
tory understanding with cur creditors al
the earliest practicable period, for the
reasons heretofore mentioned.
' J. r, FLIPPIN, Mayor,