The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1879-10-02

slder this question, would say. let no good
cluzen pc induced by any prospect of advan-
tage TO nlmself or to his party to take single
step toward reputation. Let him set his face
like flint against the first dawning of an ATTEMPT
to enter upon that downward pathway. 1t has
been well said that the most expensive way for
community to get rid of it's honest debts is
Reputation.
returning to the subject of municipal debts.
it is not alone those that live in towns and
cities who are interested in their wise and
economical government All who trade with
their cltzens, all who buy of them, all who sell
70 them-ln word, the whole of the laboring
and producing classes-must bear share Of
their burdens The taxes collected In the city
find their way into the price-lists of what is
bought OF and sold to the farmers and laborers
IN the CITY On the questions of debt and tax
alton the jewellers of the city and those who
habitually deal with them form together one
community and have common interest
The usual argument in favor of creating
city debt Is, that the proposed building or i'm
provement Is not for this generation alone, but
is also for the benefit of posteritv. and. there
fore, posterity ought to help pay for it. This
reasoning will not bear examination. Each
generation has its own demands upon its purse
1t should not be called on to pay for the cast
off garments of it's ancestors
The appliances and structures which our
ancestors provided for water, light, streets.
parks, cemeteries, for putting out fires, for po-
lice, for locomotion, for education, and for the
thousand other necessities of city life, would not
be well suited to the tastes, habits and wants
OF our day. This generation must have steam
fre-englnes and water-works, and it's tax-pay-
ers do not want to be called upon to pay for
the cisterns, the fire-buckets and the pumps of
thirty years ago
Municipal borrowing is the parent of waste,
proflgacy and corruption. Money that comes
easily goes easily In this career of reckless
extravaganza cities build and buy what they do
not need, and pay for what they get far more
THANH is worth. adopt the words of the val
liable report Of the Pennsylvania commission
appointed to devise plan for the government
of cities. To sum it up, it too often happens
that " the men who authorize the contracts are
substantially the men who profess to perform
them. The men who fix the prices are SUBJ
stantially the men who receive the pay for per
forming the labor, and the men who Issue the
bonds are the men who receive the money"
The magnitude and the growth of this evil
are shown by statistics with which the public is
familiar do not choose to detain you by re-
peating them in detail
few weeks ago the New York Tribune
called attention to an excellent article on this
subject in the Princeton RevieW, by Mr. Robert
T. Porter. In which it is shown local debts have.
since the war, increased out of all proportion
to the increase OF property and population. Mr.
Porter shows that in 1870 cities the debt in
creased from 1921 ,312, 009 in 1868, to $644, 97S-
663, in 1876. The percentage of increase is
about 20O per cent. in ten years, while the prop
erty OF these cities increased but rs per cent,
and their population only 80 per cent. The to-
tai local indebtedness of all of the States,
emitting the Territories, it is estimated in the
article referred to, at the close of 1S73 was
l,O5l, l06, liz. In many instances it is shown
that the annual amount of interest paid by cit
les on their debts is almost equal to the total
annual expenses for carrying on their local
governments. The volume of the local indebt-
edness of the country already exceeds one-half
the great war debt of the nation, and the inter-
est upon them, from the high rates usually
paid, will soon equal the total interest upon the
national debt.
The urgent question thst is now pressing
for consideration is, how to deal with these
large and increasing local debts? The best an
swerit seems to me is simple, ready at hand,
and sufficient. Do not have any local debts.
Let it be embodied in the constitutions and
laws of every State, that local authorities shall
create no debts; that they shall make no ap-
preparations of money until it is collected and
on hand; that all appropriations shall be for
specific objects, and that as to existing debts
suitable provision shall be made for their ex-
tinguishnent
debts--will be dificultand embarrassing Val
liable reforms always are difficult and
thorough work often is embarrassing If we
would be rid of the peril Of approaching bank
ruptcy and reputation, which now threaten
80 many towns and cities. there must be d
halt to this dangerous downward march. If
the remedies have suggested are too radical,
let others be proposed and acted on, and that
promptly.
The policy of preventing the creation of
local debts by positive constitutional prohibition
is fully sustained by the experience of the
States with respect to State debts. Constitu-
tions in many of the old. and in all of the new,
States have been adopted within the last thirty
or forty years, and almost all OF them contain
provisions denying to State Legislatures the au-
thority to create debts except in case of war,
instruction or other extraordinary emergency
Under the operation of these prohibitory pro-
visions, the debts existing at the time of their
adoption have been greatly reduced and the
only States now embarrassed by debt are those
whose constitutions do not contain this wise
prohibition.
The general policy of the National Govern
ment on the subject of debt has always been
sound. 1t may be summed up in few words
No debts to be created in time of peace, and
war debts to be paid off as rapidly as possible
when the war ends.
The Revolutionary-war debt, at the inaugur-
alton OF the present form Of government, March
4, 1889. amounted to SIC, 100000 and after sue
cessive refunding, in long bonds was
paid off by their redemption, finally, in 1885.
The debt created by the war OF 1912, after
refunding in 415-per-cent bonds, was also
paid in 1885, and at the close of that year the
nation was practically free from debt.
The debt incurred on account Of the Mexi-
can war amounted to $83, 552, 698, the bonded
debt bearing per cent. interest, running from
five to twenty years, and treasury notes at
various rates Of interest, from 1 mill to 2-5
per cent. All of this debt was redeemed prior
to 1870, excepting very small amount not yet
presented for redemption.
AS marked evidence of the fidelity with
which our national obligations of this descrip
ton have heretofore been met, it is worthy of
note that, during the war of 1912, the interest
on the portion Of the debt held by British sub
jects was regularly paid, the agents of the
holders in this country, owing to the Interrupt
ton Of direct commercial intercourse, being
sometimes obliged to resort to circuitous and
extremely difficult routes for the transmission
of payment find the fact remarked upon by
Mr.. Alexander Trotter, the British author Of
standard work published in 1889 upon our ma
tional financial position and credit ut that time
The author also notes the fact that the act of
Congress passed by the first Congress that as
sembled after the adoption Of the constitution