The daily Cairo bulletin. (Cairo, Ill.) 1878-1???, 1878-06-04
NEW SERIES---NO %.

/ 'y "ip''Hhib''iy ''lltti,
but it is believed that if the
calculations We're made with exactness the
amounts falling due at each specified period
would exceed the amounts put down in the
foregoing statement, and the aggregate
amount of payments would also thus be
larger.
1t is probable that under the provisions
Of an act Of the legislature, contained in
the revised statutes Of 1877, chapter 113,
scction'l, page 749, new bonds in renewal
Of those now outstanding, as they respcc-
lively become due, could be issued by the
city and county, if suitable arrangements
therefor could be made with the holders of
the maturing bonds. The provisions of
law above alluded to are as follows. viz
THAT in all cases where any county, city,
town. township, school district or other
municipal corporation has issued bonds or
othereyidences of Indebtedness t0rmoney. or
has contracted debts, which are the binding,
subsiSting, legal obligations of such county,
city, iowa, tow Iship, school district or other
municipal corporation, and the same, or
any portion thereof remain outstanding and
, unpaid, it shall be lawful for tho proper
corporate authorities of any such county,
city, town, township, school district or
1 a
other municipal corporation Upon the STIR
render Of any such bonds or other evidences
OF Indebtedness or any number or portion
thereof to issue in lieu or place therof. to
the owners or holders of the same, new
bonds or other evidences of Indebtedness.
in such form, for such amounts, upon such
time, not exceeding 90 years, payable at
such place, and bearing such rate of interest.
not exceeding the rate of interest specified
III tEc bonds or evidences of Indebtedness
in lieu Of which they are issued. as may be
agreed upon with the owners or holders of
such outstanding bonds or other evidences
of Indebtedness provided,
that no new bonds or other evidences of
Indebtedness shall be issued under thi, act.
unless the same shall be first authorized by
Il vote of anna jority Of the legal voters of such
county city, town, township, school dis
trio, or other municipal corporation, voting
at some general election or special election
ncld for that purpose"
But it is to he observed that this arrange
ment can apply only TO the principal of the
bonds, the issue OF bonds for the interest
which has either already accrued or which
may hereafter Income due, being interdict-
ed by section IL, Of article . OF the const-
tuition of the State Of 1870, which saws:
mo county, city township, school district,
or other municipal corporation, shall be
allowed to become indebted in any manner
or for any purpose to an amount, including
existing Indebtedness, in the aggregate
exceeding per Centum on the value OF the
taxable property therein, to be ascertaincd
by the last assessment for State and county
taxes, previous to the mourning of such in
debtedncSs" A. this limit of Indebtedness
has already been reached by both the CITY
and county any issue of bonds for interest
! which has already accrued and is unpaid
or for interest hereafter TO accrue would
he Illegal, and not being binding oblira-
ton upon either the city or county they
would not'bc received by any one, and
thus the only source from which means can
be derived to meet this interest i direct
taxation Of the property Of the
city and county. This interest alone,
for the term the bonds have to
run, to be paid by the city would be about
$3.50, 10 -, and by the county about S270,-
600 90 making together Ss52.,l0 10,
sum greater than the whole amount required
to be paid for both principal and int.
rest under the proposed funding
arrangement as will be seen by
reference to the particulars of that ar
rangcment, which will hereafter appear in
this report.
But with their large existing bonded in
dcbtcdncSs unadiustcd there would not in
the opinion of your committee be tEc
slightest probability that either the city Of
county could effect renewals of any of their
bonds and therefore there would be moth
ing left for them to do but to make pay
mcnt OF the entire principal and interest of
the bonds themselves as they each respect
lively fell due, or he subjected to the annoy
ance' veNation and injury of innumerabIe
law suits, judgments executions and other
proceedings to he instituted by bondhold
ere to collect the amounts due them. As,
IN the opinion OF your committee, it would
simply he an impossbilty for the city and
county to make payment as required, the
other alternative Of annoyance vcxaton
and injury would inevitably be the result,
and it will require but limited reflection to
forecast the disastrous CONSEQUENCES of the
"a tt.lIItt all 4 -