New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-09-16

RESTRICTING MUNICIPAL INDEBTEDNESS
In 1874 the State Constitution WAS amended
prohibiting any county, city, ETC., to make anv
gilt or loan of money or credit, or incur any IN
debtedneSs except for county city PURPOSES
The last Legislature proposed an additional
provision, strngently restricting the amount of
debt which may be incurred by any county
containing city of over 100, 900 inhabitants.
or by any such city. The people are invited
10 choose Senators and Assemblymen this fall,
partially with reference to their views upon this
question. The amendment is in effect:
Ihat no such county or city shall be allowed to be-
come indebted for any in any manner to an
amount which, including existing Indebtedness shall ex-
coed 10 cent of the valuation of the roa
tate OF such county or city subject taxation as IL an
peared by the rolls said comfy or ct
on the last assessment for State county taxes prior IN
the mourning OF such indebtedness and all Indebtedness
III excess OF such limitation except such as NAV now ak
ist shall be absolutely void"
Two exceptions are allowed: certificates of
indebtedness issued in anticipation of tax re-
celpts OF the current year, and bonds issued to
OBTAIN water supply; but these last must not
nave more than twenty years to run, and an
adequate sinking fund must be provided And
the amendment further provides that the
amount hereafter to be raised by tax fol county
or city purposes in any county or city such as
above mentioned in addition to providiny far
the principal and interest of existing debt shall
not, III the aggregate, exceed in any one wear .
per centum of the assessed valuation of the real
and personal estate of such county or city.n IN
be ascertalned as prescribed in regard to IN
curing debts.
This amendment deserves, and will without
doubt receive, the hearty approval and support
OF honest taxpayers. Let them take note of il
~.
IN que season. 1t Is not of a character to be
espoused by ring masters and machine politi-
clans, unless they are made to feel popular
demand. The bonanzas which the rings have
founded in the chief cities during the past ten
or twenty years have owed their existence To
the ease with which city bonds could be put
upon the market. 1t has not been difficult for
ingenious managers to win votes for a plausible
public work to be built with the proceeds of an
issue OF bonds Amy such scheme gave them
and their followers abundant ready money : il
cast the payment of the bonds and the taxation
needful therefor upon the far future. New
York City readers do not need to be reminded
how heavy Is the burden of DEBT which has
thus been accumulated here Many other
cities suiler III like manner The way is now |
opening Tor honest voters to stop this abuse for
the future. Let them not fail to say Yea.
with respect TO cities whose debts now exist |
ing may exceed the limit of 10 per cent. the
proposed amendment directs that anv such citv |
"shall decrease the amount each wear at the |
rate OF at least l per cen, on the assessed |
valuation OF tn" taxable property of said city |
until such debt is reduced to an amount eouaI |
to the rate of said 10 per cent" This provi. |
sion for reduction of existing debts NAV. nor |
haps, be inefficient unless supplemented nv |
legislation directing the manner in which the |
reduction shall be made, and imposing the duty |
definitely upon designated officers. There is
reason to believe that the general prohibition
against mourning future debts, if finally
adopted, will be enforced directly by the courts.
Several of the States have found need in recent
years OF adopting similar constitutional pro-
visions. The people of Illinois, by the Constitu-
ton OF 1870 forbade any city to become n-
ueoted more than per cent on the value of
taxable property therein. Chicago's fiscal
ofhcers, disregarding this, and Notwithstanding
the city debt exceeded the per cent limit. is
sued certificates of Indebtedness for temporary
Loans y; obtained the cash for them from con.