Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1878-12-12

We published a 0oleful account OF the
financial condition OF Mobile afew days since.
and now comes Charleston with tie same dis
NAL story. The Courier and NeioS says:
The city of Charleston is in as bad way It seems
as the city of Savannah was Lass year. and we can
appreciate better now than did then the pressure
of circumstances which force cOmmuFiiies ike in
dlyiduaS. to ask for the indulgence of their credit
ors. In the opinion OF the city council, Charleston
There are large arrears OF unpaid taxes. Property
has fallen IN value; the city is large indebted TO
employees and others; heavy deficiency, 10 be pro-
vided for out of the taxes OF the com
Ing year, stares the council in the
the city by recent decisions of The supreme conr of
the United States, IS precluGed from taking city
stock, which Will diminish the income from taxes
next year. Upon careful investigation Of the
financial situation. the committee Uf ways Hnd
come 10 the conclusion that the people cannot pay
higher tax than is now levied, ana that the only
way to keep down the rate Of taxation TO the present
level to actually lower the rate Is by reducing the
amount of tine city debt by reducing the rate OF
curing reduction OF principal than reduction of
interest. reduction OF the rate of IN er ST upon
have the effect, until the maturity of the
obligation, scaling the principal sixtys and
relinQuishment by the holders of any part
Of the capital value OF their securities. The
committee, therefore, ADVISE that the present six
per cent city stock be convered, vito the sanction
OF the state into four per cent non-taXabe bonds,
having Unity years TO run: Ihese b0Ed5, it Is eX-
pected, will co bmand at leass high price the
six per cent. stock comm andS and, having long
period 10 run, ana being made secure legiSla-
ton can make them, Will be desirabIe and profit
able investment. Our position all along has been
that every stick stone city is liable for the
municipal bt, and that, if ID not liable, it
is cheaper to nay than to repudiate. We shall aban
proper thing to be done, Il seems Us, IS to make
clear statement OF the financial condition
of the city. The CITY can then confer
with It's creditors as was done elsewhere and
strive to get them to consent to make such an
change OF securities as the city council PROPOSE
When it Is found that the city cannot pay in lull ard
Is really doing the best It can the hOlde Of the city
stock can be expected to acsede 10 reasonable rc-
adjustment For against the fact that the holders
of city stock enforce the payment OF interest in
FULL by judicial proceedings, is the further fact that
any corporation which is determined not to pay can
put its creditors to Inconvenience and expense by
almost lnteTnlnaD-e litigation, Moreover the
property OF whole people ganno be sold lor taxes.
what obstacles can be interpreted VII re
there is an unwillingnes5 to recognize a legal
Obligation IS sufficiently shown by the history OF the
bills OF the bank Of the Stale which have the
supreme court of the United States at their back.
and by the position of the coupons of the cLnsOd4
ton bonds, which are by contract with the holders
receivable for State taxes. There il an iuchCate
reputation party in Charleston aud the minority of
the voters who pay the bulk OF the taxes, hardly
to be relied on to resist successfully forever move
ments which look 10 reducing the burden upon every
kind or property.