Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-08-28
MUNICIPAL INDEBTEDNESS.

dESIaI TGtuTHS from nineteen oates
show a municipal Indebtedness of $685.
$50, 600. This represents only about one
half of the country, though it perhaps in
cludes the heaviest municipal debts. In
1870 the total municipal debt of the coun-
try was $S6S, 000,0 900. This time it is evil
dent it will exceed those figures by five or
six hundred millions. 1t is evident that
though during the past ten years a good
deal OF attention has been called to this
subject, and though many new State Con-
situations have been adopted with a view
to checking extravaganza, the increase of
debt has been steady and large so steady
and large that it becomes necessary to in
quire what all this is to end in. At pres
ent the municipal debt of New York is
$40, 000 GOO; of Massachusetts, $50, ;
coo, 900; of Illinois, So, 00O COO; CT Ohio,
Sal Geo COO; of New Jersey, SIS, coo, OO0 !;
of Missouri, $4,000. GOO; OF Louisiana,
10000 GOO; of Kansas, $4,000, coo; of
Rhode Island, So, 100000; of Indiana,
SI4, 600, eco; OF Connecticut, 81, 000, coo F.;
of California Sll 500, 900. The county
debts alone of Pennsylvania amount to
SIS, 000,O 600. 1t will be seen that CaIifor-
MIA makes very favorable showing when
compared with many other States, New
Jersey, for instance, having four times as
much debt of this kind to carry. But it is
evident that if every decade is to increase
the aggregate Of municipal Indebtedness at
this ratio, the time is not far distant when
the more extravagant localities will be
crippled, if not ruined, by their financial
burdens. We know here what it is to
carry heavy local debt, but some of the
debts of Eastern communities are actually
enormous, and thelarger theyare the greater
is the danger that they may be repudiated.
There can be no doubt that there are many
cases in which the consideration received by
municipalities for obligations incurred is
wholly inadequate, and that Court of
equity would approve the scaling of such
debts. The fact remains, however, that
the attempt to pursue such policy too
commonly produces more harm than good,
by injuring the credit Of the community,
and thus checking its increase. The convic-
ton, nevertheless, is growing upon thought
full observers that it is safer aud easier to
prevent the contraction of municipal in
debtedness by refusing authority to get in
debt to the city governments, than by
trusting to character and Judgment in the
selection of officials. What people are
sure not to do is that which they cannot
do. There never can be any real certainty
that they will not do what is within their
power. Charters and constitutions which
prevent Boards of Supervisors, Aldermen
or Trustees from plunging their towns into
debt, may be at times productive OF incon-
venience, but in the long run they are far
better than looser instruments. They
make it certain that there must be thor
ough discussion before any debts are con-
tracted. They remove the strongest in
centive to corruption, which consists in
the temptation to mortgage the property
of other people when one has the power to
do so. And it is plain that this tendency
to impose closer restrictions upon munich
palities must grow. Local debts are al
ready far too heavy. There must be a
period of sharp retrenchment, or there viii
presently be collapse.