Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1876-07-06
THE CITY DEBT.

In Mayor FIIppin's Message 10 the !
General Council.
At the meeting Of the General Council,
held on yesterday afternoon, Mayor Flip
pin presented the following message,
which lays bare our financial condition
with a scslpel;
To the Honorable General Council:
The debt Of this city is now, in refund
numbers S., 700, 900. There are now
$500, 900 of matured coupons unpaid.
These bear seven per cent interest. The
annual interest on our debt is about
1850, 900. Our annual expenses must be
about $500, 900, if we do anything toward
the necessary repair Of our rotten pave
ments. The interest collected at the
rate fixed by charter is less than $50, 900.
The sinking fund collected at the rate
fixed by charter is less than SEC, 1000. 1t
is now ascertained that our taxable
values, including realty, personally and
merchants capital, everything, for 1875,
after all proper deductions have been
made, are less than 1923, 600, 900. Our
State and county tax will be about $780,
900. The mandamus tax being collected
for 1875 will be about $400, 600. To meet
our Indebtedness for 1875 we must raise
nearly 81, 400, 600, which is more than
six per cent. upon our values; these are
the approximate figures for 1875.
The real estate values, unlike the
| others, must remain as they are for the
next three years unless the next Legisla-
ture change the mode of assessment. II
it should, this will be much disminished,
for its value, of course, depends upon the
personally and merchants capital, and
this last will be at least twenty per cent.
less in 1876 than in 1875. With reduced
values and increased debts, the rate and
aggregate of taxation must be much
higher in 1876 than in 1875. Under op.
pressiVe taxation our personally is
shrinking into nothing, and will continue
to do SO at q greater ratio in the future
than in the past. With no personally
our real estate is comparatively value
less, and Memphis, in commercial i'm
p~ortance, dwindles to a mere point on
the map. Our personality, exclusive Of
merchants capital, is about a half q
million less in 1875 than in 1874 Our
real estate. in 1874 was $24,473 $50, in
1876, $l9,329,6 800, but this sum, after
proper deductions have been made for
over.assessments, reductions by County
Court, ETC., is reduced to $l6,666,805.
1t is true that the purchase Of our
, bonds of late by your Sinking Fund
, Commissioners has given the outstsnd
. ing ones a spasmodic stiffening, but the
hectic flush bespeaks death rather than
life. This is a faithful summary of our
condition. Here is the outlook. 1t is
, unpromising. The fact is, we have
reached that roint that, with all the
. economy in the world, and the most ju'
! dicious application of our revenue, when
collected, we are getting several hun
n bred thousand dollars deeper in deb
every year. Look at this statement anC
see what We lack yearly of paying oul
u interest alone The truth must be tolC
b sooner or later, and the truth is, it il
n simply and absolutely impossible to pa,
this debt in its present shape. We arr
utterly unable to do so now, and ar
IT growing weaker as our debt piles highe
and higher. There has been a genera
4, shrinksge Of values. In view Of thi
. acknowledged fact and our increasinI
q poverty, it will he to the interest of GU
or creditors i refer to no other considera
If tion) to meet US in a spirit Of comprC
mise.
Z Now the average marketable value 9
he our bonds is about 40 cents, and unles
TO there is some adjustment of our 6nanceI
N their value viii rapidly decline. Seml
thing must be done, and that quickly.
believe this debt can be settled advsI
It, tageously to our creditors and to the citl
As | have said, it will be to their interel
90 TO do so, and their interest will be th
. prime consideration which will NOV
81 them. Any settlement will better u.s.
e. we cant be damaged. Somebody, f
he the city, must conduct the negotiation
NJ with its creditors. TASK you to empow,
me to do 60. Somebody must be trusted
1t is a large commission; | know OF
ed fully appreciate its magnitude and Il
X manifold difficulties and embarras
ments attendant upon its proper exec
ton; put upon me, if you will, the co
on sequences of failure; somebody mu
at undertake this settlement, and unless
Ia. is commenced, it can never be consur
u mated.
su' Our Legislature will meet in Jsnuar
he whose action we must invoke, and ii tn
ct, session passes without our having aceol
,se plished anything, two years mere mu
!. elapse before it will be convened agai
:" leaving us in the meantime to more Ii
lip cation, more taxation, ending in q p'
int feet paralysis Of business, from viii
i've for years there can be no reawakenin
We should, il possible, between now q
January, 1871, see our creditors q
re- conclude with them some definite teri
of of settlement. The Legislature W
beyond a doubt, enable us to carry
into immediate effect. There can be
Wn- opposition when our creditors and o.
esi- selves agree, the matter being purl
the local in its character. What we
should be done without delay. Tit
are the UNPLEASANT facts, succinc
uld stated. / believe your good judgmr
but will dictate the proper course to be p
oen sued in this hour OF u beloved cit
great distress. Very respectfully,
"as JOIN r. FLIPPIE, Mayor
and July 5. 1879.
the Both Boards promptly complied "
by the Mayors request, and empowe
ght, him to hold a meeting with the credit
lose Of the city and endeavor to effect SO