The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1879-01-23
Municipal and County Indebtedness.


portance of some legislative protection to
counties and municipalities from the harm
growing out Of subscriptions to works of
internal Improvement. We did this, not
because we are not earnest advocates Of all
public enterprises which have for their OBJ
ject the development of the material re-
sources of the country, but for the reason
that the absence OF legal restraint has
tendency to lead to reckless appropria-
ton of the property Of the people to enter
prises ruled by private corporations. Since
New York Times that Gov. Mcclellan, Of
New Jersey, Gov. Cullom, Of Illinois, and
Gov. Hartranft, of Pennsylvania, have made
some startling exhibits of the effects of sub
scriptions Of this kind by counties and cities
in their respective States, which are destined
to enforce condition Of hopeless bank
ruptcy in some of the municipalities in those
States. The indebtedness of the State of
New Jersey is $2,196,30O while the local
and municipal Indebtedness of the State ag-
gregates something like $50,00o.000, or
about 10 per cent. on its assessed valuation.
The Times says the Governors inquiries ap-
pear to have been confined to nine cities,
and the exhibit he makes more than justi-
fies the apprehensions that have been enter.
tanned with regard to the financial future Of
them. The nine comprise jersey City, Ho-
boken, Newark, Paterson, Elizabeth, Rah-
way, New Brunswick, Trenton and Cam
den, the aggregate indebtedness of which, is
$36, So, 722, or nearly one.sixth Of their tax
able property, which is set down at $685.
l45,7O7. OF the 1904, 1874 taxation levied,
only 1928, 1898 is on account of the State
The city taxes are So, 44O,034. The debt OF
Railway, per head, is S243,and the expenses,
also per head, s23; OF Elizabe th, 1924 and
sl4 respectively Of Jersey City, $3.50 and
SIG respectively. This heavy indebt edness
was incurred, most Of it, in flush times, and
when people could see nothing but an un-
broken season of inflated prices and ficti-
tious prosperity. The result with which they
have to deal is certain bankruptcy, sooner
or later.
The municipal debt Of Illinois is little less
than s52, 600, 900, about 80 per cent. Of which,
according to the Auditors report, represents
obligations incurred in aid of railroads.
Gov. Hartranft, says the Times, discusses
at some length, the need of reform Of the
municipal system of Pennsylvania, which
at present fosters extravaganza, debt and
taxation. 1t is apparent to all, the Govern
or says, that under the present system the
bankruptcy Of the larger cities of the State
is only a question of time.
In Ohio, Gov. Bishop shows that while the
State debt does not exceed $4,000, 900, the
county and municipal debts, in the aggre-
gate. exceed $4l,00O,0 900. The Governors
of Michigan and Indiana both call attention
to the ruinous policy of municipal and coun-
ty recklessness in voting heavy subscriptions
| to public enterprises. In fact the evil is so
wide spread, that general attention is being
called to it, and the people invoked to give
more cautious and intelligent attention to
all matters connected with and growing out
of the ballot.
We cite these references to the subject
which we hastily discussed last week, in or
der to draw the attention of the Legislature
to the necessity of imposing some severe re-
strictiors upon county and city subscriptions
to schemes of public improvement, if not to
inhibit them altogether, before Virginia, in
her municipal and county burdens, becomes
as FRUSTRATED as she is with her State debt.
This is a subject which might profitably
engage the attention of the Legislature and
lead to some good results, if we give it that at.
tention its Importance deserves. But we need
expect nothing practical to result from leg.
islation, so long as that body is in frame Of
mind to tolerate such insidious papers as
that presented on Saturday last by Gen. B.
7. johnson on the exploded and obsolete
notions of State Rights.