Daily Los Angeles herald., 1883-05-03
70 Be, OR NOT TO ssa
Some Sensible Ideas From "Busi-
ness. on the Bond Issue.

EDIToR HERALp:-In reference to the
question Of tho issue or non-issuance of
bonds by the electors Of the city, there
appears to me to be some points that
have not been presented.
The talk of those opposed to the
proposition seems to be, while they con-
cede the absolute necessity of decent
accommodations for the transaction of
the business of the city, they say it
would not be safe to trust the City Coun-
ell with the expenditure Of SO large an
amount Of money raised by the issue of
bonds, bat they consider it would be
perfectly safe to trust them with the
handling of the same or larger amount
Of money raised by taxation. This idea
only needs to be stated, it requires no
argument. But on the safety question
there is this to say, the Council of this
city is composed Of fifteen men elected
by the voters to manage the business of
tis city, and it is to be presumed the
people would not have elected thsm il
they thought they could not be trusted.
And, again, there can be no step taken
by the Council in this matter, nor can
one cent. be drawn from the City Treas
ury, or anything done that would make
the city liable to pay one cent without
the votes Of ten of those fifteen Council
men being given in open meeting in
favor thereof, and their names spread
on the minutes. There is no municipal
body in the world, can confidently
assert, that by by its constitution is made
safer than the Council Of this city is
made by the City Charter.
This one opposes the measure be-
canse the amount is too small; another,
because it is too large. This one, be-
cause the location is not fixed; the other,
because he thinks it is, and he don't
like it.
The city now has outstanding bonds
paying 7per cent. interest, to the amount
of S277, 900. Sound finance would re-
qure if taxes are levied it would rather
be to pay off the 7 per cent. bonds, and
borrow the money needed at G per cent,
rs can now be done. This would be asav-
ing Of $1,000 per year, and Of $40, 900, ii
allowed to run twenty years.
The charter OF this city limits the tax
levy to sl.50 on the 500, in addition to
the amount required for interest on and
redemption of bonds. The present
growth of the city, while it will increase
the amount of assessable property, will
certainly necessitate an increased levy
for the general expenses OF the city. in
ratio in excess of the increase in the
value Of property, that is always found
to be the case in growing cities. and the
reasons are so evident that it would
seem unnecessary to state them, but as
an instance would mention, that until
last year for several years thore seemed
to be no necessity for additional school
accommodation. Last year Sl2, 900, all
that was thought necessary, was secured
by taxation for that purpose. while this
year about s45. 900 will be required. and
is imperatively necessary. Again, there
is Sll 200 bonds to become due in jan
uary next. All this will run the levy,
in addition to the amount required for
interest, etc. (say 40 cents), up to Sl.20
on the 500, and leave only thirty cents,
and producing not to exceed $50, 900, that
could be levied for building a City
Hall, so that the idea Of building a
City Hall by direct taxation is simply
ridiculous, as the constitution OF the
State makes void any debt contracted
in any year in excess OF the revenue Of
said year, without vote Of two-thirds
OF the people. BUSINESS.