Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-02-09

IN IEllS city litdl AiAN hAAtNlhSN7 u AiiS
corporation are in a condition which
calls for a thorough scrutiny and
new and vigorous financial policy
to save us from great pecuniary dis
aster. This conviction we find TO
be so widely spread and so deeply
rooted that 1t is impossible to sup
pose it to be entirely groundless.
Indeed enough is known to justify
apprehensiOns of the gravest charac-
ter regarding the unknown. 1t is
known that several judgments are
out against the city; that a Inanda-
mus Is hanging over her for some of |
her past due coupons; that money |
Is scarcely procurable for necessary
expenses !; in short, that all the
symptoms of serious corporate en-
barrassment are cOnspicuously visi-
BILE.
Now this state of vague apprehen-
sion is a very injurious one to any
community; it is like sailing in a
log on lea shore whose bearings
are unknown, a more dangerous
condition than a furious storm in
open sea. The only remedy for it
is a thorough scrutiny of the matter
and complete publicity; the reality
precisely stated and vigorously han
died would be infinitely better than
our present state of surmiseand anX-
iety.
Some years ago the finances of our
county were in a similar condition.
The county was drifting towards
bankruptcy and no one knew when
the ship would strike and the break
ers dash over her. Fortunately a
capital pilot was secured, under
whose direction the craft was over
hauled and her head put about till
she is now floating safely in deep
water. Under the able management
of Judge Tyler the liabilities of the
country were carefully estimated,
all difficulties looked straight in the
face, and at this daythepastd due inter
est on our debt Is paid, the future
provided for, and the taxes some
what lower than they were when he
took the helm. Judge Tyler will
have no difficulty in passing his
|OkimaSia when his time is out. 1t
Is high time that the city finances
were put in train for the same treat
ment; the best financial ability of
the city should be brought to bear
upon them.
We have no doubt that many will
blame this public appeal, will think
il an unnecessary alarm and say
that the whole thing should bemOre
quietly managed. We beg to differ;
the alarm exists already, and the
knowledge that our difficulties are
being vigorously grappled with will
have a tranquilizing effect on the
public mind.
There are two ways of dealing
with business embarrassments. Two
young men start in business, we
will suppose, with sufficient capital
and good hackers. They buy their
first stock within their means of
payment and do Il prosperous bust
ness. Their profits are beyond their
anticipation, and the idea occurs to
both of them that these could have
been much higher if their operations
had been conducted on a larger
scale. They find their credit good,
increase their stock, trade on a
broader basis made up partly of cap
ital and partly of credit, and find
their profits, as they supposed, much
increased. Now they 90 to borrow
ing money. What risk, say they,
can there be in borrowing at Si.t per
cent. when they are trading at tlre,lty
per cent. profit? And it is all right
for time, but dull times come,
sales shrink, those who have loaned
need their funds, their endOrsers,
unreasunably, rs they think, want
To look into things, and it - appa-
rent to both that crisis is at hand.
So far the two have acted nearly
alike, but now the difference between
the two comes out. One of them
faces the crisis at once; he examines
his liabilities, makes a careful sched-
ule of their amount and date of ma
turity he takes stock and examines
his shrinking account of sales; finds
that the stock is too large to be prOti-
tably traded on at such rates; quiet
~ sells a portion of il, at cost if he
can do no better; cuts down eXpen-
ses, business and personal, to the
lowest possible figure; provides rig
idly for every claim rs it becomes
due, and haply in the end gets into
port a wiser man, his credit good,
his capital untouched and high in
the confidence of all sensiblem
But how does the other meet the
crisis? 'Pshaw," says he sit will
never do to stop nOw-that would
bring all my creditors on me at
once" pushes things; increases
his stock; borrows money at high
Interest to meet immediate calls;
sells off at "cOst and under COST
several times; pays a few claims
with the proceeds; further increases
his stock; makes his establishment
stylish, far outshining his more care
ful friend; keeps up things hand
somely at home; dresses his wife
fine; makes a splurge with his car
riago and horses. people will
think I'm broke" he says, off 1 do
things shabbiIy :" borrows again
and again To meet his notes, finding
interest grow higher and higher.
Business men need not be told how
all this will end.
Np1v which of these two WAYS of