Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1882-04-24

| Will sell 90,uUU worth at oU OF 0f Genus On
the dollar. Bonds have been offered re-
Gently at the latter figure. But by doing
this he expects to gain enough on the
appreciation of the remainder to give him
handsome profit on the transaction. 1t
follows from this that the present endeavor
to depreciate the bonds is in the interest
of the bondholders, and not of the city,
and the proof of this has been already
made in the suddenly increased activity of
we'll known spectators and brokers who
hope to make "turn" out of the unintelli-
gent proceedings of certain of our citizens.
1t is necessary to understand, further
that the bondholders are not in the least
alarmed for the ultimate payment of their
securities. They say that they have taken
the best legal advice in the country, and
they are perfectly confident Of their ability
to compel the settlement of their claims in
the last resort. Some of them are willing,
as before observed, to sell part of what
they hold at low figure, but they only
that by so doing they can actually increase
the aggregate value of theirremaining bonds.
Of course it must he evident to every in
telligent man in the community that even
il it were possible to carry out the revolu-
tionary programme proposed at the meet
ing last week, it could not produce any
good results to the city unless two things
could be counted upon: Q} That the city
should have funds to purchase the bonds at
low rate ~ that the bondholders should
be frightened into willingness to sell them
all at that rate. II the city has 10 money
to buy bonds with, and if the bondholders
viii at the best only part with enough of
their securities to enhance the value of the
balance, it is perfectly clear that this
movement can only appreciate the property
of the bondholders.
But it may bring about serious mischief,
by precipitating collision between the
city and its creditors, and if the latter
have been well advised, as they firmly be-
lieve, the result of such collision would
be the enforcement of the payment of in
terest. 1t is necessary to realize that these
bondholders do not consider themselves
in any way dependent upon the opinions
or sentiments of this community. They
claim to hold a perfectly solvent debt,
and to be able to compel payment of it,
and they are no more concerned as to our
feelings about the matter than creditors
usually are when they know that their
debtors have ample resources. To talk,
therefore, as if it were altogether ques-
ton of what this community chooses to do
in the premises, is misleading and imprac.
tical. Ii the bond holders are right we
have no choice in the matter and it must
be said plainly that no one up to this mo-
mert has succeeded in establishing any
valid ground for serious doubt as to the
impregnability of their position before the
law. 1t would be pity if any of our
citizens were deluded into refusal to pay
their taxes by false belief in the efficacy
of such action to improve the financial
position of the city. 1t would entail
serious inconvenience and probably not
little actual injury, upon the city, and
would be very apt to end in pecuniary
loss to the recusant parties. 1t is still less
worth while to encounter such risks for
no better end than the enhancement of the
property of our creditors.
1t has been suggested that possibly some
capitalist, or syndicate of capitalists, might
be found to advance money to buy up the
bonds. But it is now ascertained that out |
of $1,000, 900, no more than 100000 at
the outside could be purchased at from so |
to 81 cents. If these were 30 purchased |
the remaining 5000, 900 would 60 to par,
or near there, and when the interest for
the borrowed money was paid, and the |
coupons, it would be found that very little !
had been gained. As regards the alleged
outlawed coupons, moreover, 1t seems
questionable whether some of them really |
are outlawed after all, for it has come to
| Light that one bondholder at least has for
several years been in the habit of bringing
suit on the coupons in San Mateo county,
and if others have in the same manner
kept their rights alive, the prevalent nc
ton respecting these coupons may prove
| erroneous. Again, when the assistance of |
outside capital is talked of, we are at once |
confronted by the difficulty which the
existence of an apparent disposition to
repudiate our obligations creates For
it is evident that any capitalist to whom
application might be made would
apprehend being put in the place of the
present bondholders, if he advanced money
to buy up their claims. and as no guarantee
could be given him against the formation
OF similar repudiating movements here
| after, he would certainly decline the nego-
tiation. 1t appears from these consider
ations that the tendency of the present ILL.,
considered and unintelligent agitation is to
prevent the arrangement of any plan |
whereby the debt could be lightened, and |
to play into the hands of the Spectators
and bondholders. That any real relief can |
be obtained from such methods is out of |
the question, for, as we have shown, it
cannot bring about any actual depreciation
in the bonds. All that it is likely to do is
to create the false impression that the peo-
pie Of Sacramento are represented in this
movement, and consequently to injure the
credit and standing Of the city abroad.
TIE WORK OF THg IMMIGRATION AS.
ISOLATION