The daily Argus. (Rock Island, Ill.) 1873-1877, 1877-01-30
City Finances.

CipdIi II says.
A portion of the money to pay the principal Of |
these bonds should be collected every year but il
should not be kept on hand, 1t should be used for
the purchase of bonds in open market, whereby
the payment of interest would Immediately cease
There i no use in keeping money locked up when
the obligations of the city drawing interest,
Let it Immediately used for the purpose designed
"Should be collected every year" is not
the proper phrase Shall be collected
every yearS is what the constitution re-
qulres. OF course the money, when
collected, may be locked up and thus ran
the risk of burglars and fires; or loaned on
safe security so as to be ready when
wanted; or used to purchase Indebtedness,
OF course at a premium-paying our
creditors premium fer taking their pay
before it becomes due. In what manner,
pray tell US, are the people to be benefited
by giving long note and then paying the
owner Of it premium to take his pay be
before it becomes due.
We object to all these modes, as ex-
pensive to the people, and attend with risk
Of loss, and prefer, inasmuch as the con-
stitution requires the collection of a por-
ton Of the pricipal by taxation each year
that it be applied in payment by including
it in the annual coupon, which thus secures
the people against any risk whatever by
burglars, fire, defaulters, bad debts. pre-
MUM, etc. As long as the constitution
requires portion of the principal to be
collected by taxation annually it seems to
us that it is better that it be applied ION
the debt at once, as provided in the coupon
of domestic bonds.
The Union pretends that provision was
made for a sinking fund 1t says:
In 1872 the sum of $4,000 was LEVIED to cover
improvements, interest and iCg fund,
Well, what became oft? Why, it was
used up for running expenses, and, as far
as complying with the constitution, or the
ordinance we quoted last evening, it might
as we'll have never been raised. If 1T had
been included in the annual coupon there
would have then been no chance to mis-
apply it,
| The Union says:
| In 1876 in making the city estimates the sum OF
$4,000 was set apart for the reduction of indebted
ness and $1,000 were specially provided tor the
water bonds,
| The only portion of the above paragraph
which is true is that ZOO was levied not
for the water bonds but for interest on
water works bonds" We copied, from
the ordinances in the clerks office this
morning, all to be found on this subject
in the exact words which follow, viz;
| 1S72
| SEQ. , That the sum of s15 900 be raised by tax
alton for the year a. d. is12, for HdteT Tag.
Passed August r., 1879.
! 1878.
| SEC 4. The sum of $1,000 provided that the SAID
amount shall not exceed the sum of one mill oI
| the dollar on the equalzed assessment for 'WateI
Passed August 4, 1873.
! 1874.
| For water board tax, the sum of So 600, For sink
/ ing fund to cxtinguish the water bond debt, tht
| sum OF $4,000 THos. GAIT, Mayor
Passed August 2l, 1874.
! 1873.
Fer the payment of interest on water work.
| bonds 5000. b. DAVENPORT, Mayor.
Passed August g. 1875
For payment OF interest on water works bond
5000. WM P. BUTLER, Mayor
Passed August, /, 1876.
Thus 1t will be seen that DR., Calls ad
ministratiOn was the only one since thu
bonds were issued and the ordinance pass
ed which made any attempt to create ;
sinking fund and what that administra
ton levied for that purpose as we'll as 70,
building fund was gobbled and confscateC
and used IN by the succeeding administra
ton. Neither Murdock' S nor Daven
ports nor Buffers administration mad,
even pretcnse Of complying with thu
constitution and ordinance.
Experience, therefore, shows the folll
Of relying on the average city council tc
discharge its whole. duty faithfully in thi
respect, and that the true and safe wa,
for the people is to never permit anothe
bond to be issued unless the aDnua
coupon includes such a per centage Of tn,
-rincipal as will discharge the debt whel
the time expires for which the money wa
hired-not to exceed 20 years.
The plan proposed by Mayor Butler, is
of course, the best for the bondholders,-
not for the people. The council was no
chosen to represent the side of the bond
holders, as the Union does, but was chose
to represent the side of the people, Goo
financial men say, if the council sustai
the ordinance passed Friday evening
that all our floating debt can be gradu
ally exchanged for these domestic bonds
at par. Of course the bonds should nc
be issued any faster than this can be done
and only to the extent that this can
done
1t seems very clear that the interest {
the people requires that the ordinanc
should be sustained, The interest of bond
holders and money lenders it is not th
particular duty of the council to look GU
for,
2 d.. Bulls Cough Syrup is a purel
} Vegetable Compound, Innocent IN natur
= and wonderful in effect. For children it
: invaluable, curing Group, Whoopin
= Cough, etc.. 10 few hours. Price 9
= cents per bottle, or five bottles fer 81 ,0C
{ To Whom it Ray Concern.
Competent Judges saw that the China