The daily Argus. (Rock Island, Ill.) 1873-1877, 1877-02-05
City Council To. Nighttime City Debt.

G16y Oounc1I o-N1gnt--In ne C1by Oep6
The Union still pleads for putting off
paying anything on the public. debt, and
urges scheme which is not for the inter-
est of the people but which is very
good scheme for spectators and bond
holders. After havingibeen once defeat
ed, and after the council has !passed an
ordinance embodying the only safe and
proper system, it now begs for revival
Of its defeated scheme by issuing &c.,
900 in bonds for Is years and $4,000 for
10 years. Does it not look a little like
assumption or impudence for the minor
ity to again seek to revive their defeated
scheme for the benefit of spectators?
They don't Eseem to ..have intelligence
enough to know when they are beaten.
But the Union now attempts to smooth
over the bond-speculators' scheme by ad,
vocating what it opposed only short
time ago 1t was then in favor of ignoring
the constitutional provision requiring an
annual tax to liqudate the principal, and
it uttered the following wonderful chunk
of financial wisdom:
| 1t is much easier paying the interest on deb
| than the principal, and as we have TO leave al
our property and improvements to posteriLy, it,
just as well to let them guard and cherish our debt
or pay it II they wish to.
The Union has learned something since
then. Ithas been taught by THE ARGUS
that the constitution makes it mandator!
on the council to levy an annual tax t.
iquidate the principal. and it now says:
As there a number of aldermen who seer
TO think II good policy to begin paying off the cit
debt in annual ;iustalments, it might be accom-
panied by second ordinance requiring tax
be levied yearly to provide stated a sum, say IS
900 or $1,000, which shall be used for the purchas
Of outstanding bonds and for no other purpose
This would give succeeding administrations a
opportunity to purchase In open market such bono
as could be had most advautageously, withoU
tying them down to any particular class, as is pre-
posed by the domestic bond scheme. The polio
should be to purchase the bonds bearing the higl
est rate of interest, and only when these bonds al
uHobtainable, or are held at too high premium
should bonds at a lower rate be purchased.
The objection to this is, that when th
money is raised the average council wi
spend it for some other purpose,-as wa
done with the money levied for the sam
purpose under DIR. Calls administration
Then, $4,000 was LEVIED to pay princip;
of bonds, and $4,000 for city hall funt
What became of it? The next admin
tration "gobbled" it, and then natural
, said, What are you going to do abol
it?' That will be the case with tt
UHiOn'S scheme. Aldermen are so am
ious to get an appropriation for SOM
thing in their wards in order to max
themselves popular and get votes for r
election, that the money will all be use
up and nothing be paid on the debt I'll
c onl y way to put it out Of their power
use the money which the constitute
, compels the council to raise annually is
e include it in the interest coupon, and the
4 when the last coupon is cut off the debt
paid and ended. Besides this advantag
it breaks up all bcnd-speculating ring
: The Union wants $1,000 or $1,000 a ye
e to use in buying bonds-of course at
t premium! The interest of the Peep
: doesn't lie in that direction Their int
est is to put it out of the power Of any o
to use their taxes for speculative pu
U uoses. The council, tonight, if it has
{. due regard for the interest OF the pc
= = pie. will pass the funding ordinance ov
e the veto, or pass some ordinance viii
e includes the domestic bond principle.