, 1876-03-23
f!TTy INDEBTEDNESS.

BY tho City of Chicago is ono OF the vital
local questions which continue to DO DIS
ousacl. but The discussion is 1argoly be.
focpca by tic suppression Of tho controlling
facts mud nlisappIying tho Low.
I1nier tno charter aud It's amendments
of 1866, the issue Of temporary loan ccrtia-
cates in anticipation Of uncollectcd taxes
was expressly authorized by Inv, upon tho
condition that tho 1oans were not to run be-
youd tho succeeding 1st Of June. That
practice prevailed and WIS in operation at tho
time of tho adoption Of the new Constitution
in August, 1870. Il was assumed, and wo
never heard that its legality was questioned. |
that tho city chnrter then in forco continued
in operation unchanged by the Constitution
until tho latter should bo III ade especially mp
plicabie by act Of the Legislature. This cou- !
dition Of things continued until the adoption |
Of tho now charter by the ballotbox-stuifers,
when nil the provisions Of tho old |
chnrter expressly permitting temporary
loans III anticipation Of revenues woro abol-
ished. The City Government, however, con-
tinued to issue certificates Of temporary
loans, which rccitetl that they tce7e issued BY
authority Of Tie provisions Of Ms acts Of 1865
and 1861, which provisions had notoriously
been repealed THE TRIBUNE, though un.
willing, oven seemingly, to say word calcu-
lated to weaken tho credit Of tie city, could
not forbcar ron,arking On this fatal defect in
tho legal character Of the certificates, and
urging that their further issue in Tint form
bo discontinued.
The Chicago Times, which treats all quea-
| oft In of Yvft mill
without sense or reason, blindly dononnces
the city indebtedness in MI its forms md
| conditions, mud to suit its own ends assumes
that TuE TRIBUNE is of tho same opinion!
In fact, wo widely differ from tho Times in
its construction Of tho law and of tho appli-
cation Of the law to the facts. Tho Cousti-
tuition and new charter, in defining tho pow
ers OF the city, reads:
| Etfth-To borrow money On the credit Of tho cor
porat.on for corporate purposes, and isaue bonda
thcselos In such amounts and form and Hic coE.
dIttona 81 It shs prescrbe, but shall not become In
| lchtel in my manner OF for auy purpose to an
amount including existing Indebtedness, In tho aRggs-
gste TO exceed pcs eensuu. etc.
l, It will bo seen that tho prohibition is
not to the form Of tho indebtedness, which
is left to tho discretion Of the city, but is to
tho .3iset. Tho city is forbidden to "become
indebted" in my form or for any purpose
in excess Of tho & per cent, which limit had
at that timo boon already exceeded
2. What constitutes "bccoming indebted Y
There is nothing SO easy ns to incur debt.
10 hire ,uan for weeks labor is to become
indebted Mt the end Of tho week. A verbal
bargain OF promise will incur n debt; the
performance Of service or labor, tho delivery
Of property, or the furnishing of my valua-
ablo consideration In money, materials, o,
: labor, or professional service; tho purchase
Of lot for school-houso, engine-houso
police-station, or erecting buildings thereon
the purchase Of lro-ongiues, or hose, or horses
tho building of sowors, or laying wator-pipe, O
the cleaning Of tho river, or repairing the
Btreets and sidewalks; tho employment o.
: policemen, tcachers, dromen, and other scr
wants; In fact, every net Of the City Govern
: ment is becoming indebted; md, uulcS
tho money DO in the City Treasury awaitin
tho maturity of tho debt, contract, or service
and to DO then paid, there is an indebtedness
- :, oreated by tho oily. According to the Chi
= cago Times, the city dare not wait for til
y collection Of the ta1 levied to pay fo
- these obligations, dare not borrow til
~ money to fulfill its contracts, dare ne
40 change ita creditors, md laro not hav
- creditors in anticipation Of tho colc'
~ ton Of lowed taxes. Under this viii
v. ~ view Of tho case, tho Constitution
-. violated overy day tho Mayor holds his ofls
~ aud his sala,y accr11es, unless tho money
N pay that salary ia In tho Treasury; that Il
Constitution Ia violated go long rs tcache
o. or policeman, OF lre,nan, or clerk, or lahore
~ il employed, or horse purchased, co
W. bought, or gas lamp Lighted, unless Il
money nccrulng from to1os to pay therefor
M first Oh hnnd i'll tho Treasury. According
rv this Times doctrine, the1o can bo no appr
~ priation OF money not actually in tho Treas
~. ry at tho time OF tho appropriation, aud,
or there can DO no taxes lowed except to pay n
~ preparations previously made. and when n
M propriations can only be paid out Of mon
.na in the Treasury at tho time Of the appropr
ora ton, there must Of necessity DO gene
n lookup Of all the functions of govetnmo,
r,u md appropriation, expenditure, taxatis
In md becoming indebted must oil be suspe'
nj cd together, and city government DO who
m. abolished. The right To incur debt In
ha- ticipetion Of the tax levied to pay tho 90
M is wholly denled.
IN ). Tue CHICAGO Ta1nuNE docs not ag
with this suicidal view OF the case This
per holds that tho Constitution ia not ,
less lated by tho city incurring any proper, leg
her mate debt for which legal provision has b
ash made by appropriation and tax loyy, althot
de- the tax may not at tue moment be collect
ling Tho apirit and tho obvious intention Of
l A.. H. III.