Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1883-04-24
TEE CRY BONDS.

There are indications that the trouble
some city bonded debt will, at compare.
lively early day, be readjusted to the satis-
faction of all parties concerned. If this ex-
pectation can be realized it will operate to
the material and speedy advancement OF
this city. There are very few communi
ties of which we have record that have con-
tinued 90 steadily and healthily to prosper
as has Sacramento, that have at the same
time been so burdened as this people. The
sity has progressed, has augmented lite
trade, widened the sphere of its commercial
influence, enlarged It's local industries, con-
stantly and generouly increased the ca-
pacity and usefulness of its local institu-
tiors, improved it's streets and highways,
and strengthened its defenses, all in the
face of obstacles and under the shadow of
burdensome rates Of taxation which have
been experienced by very few cities, and
which would long since have crushed a less
hopeful and determined people. There has
been advanced proposition to refund the
city indebtedness. It has met with almost
unanimous approval. To that end
scheme ia outlined to issue bonds at
lessened rate of interest, on the basis of 62dd
cents on the present par value of the out.
standing bonds. a very large and respect
able body of citizens deem this figure too
high. They claim that to refund at so
cents will give the city's creditors as much
as their debt is now worth, if not more. 1t
is held that the Legislature has itself indi
rectly fixed lesser value, namely, 35
cents, by the limitation it put ON
the purchase of bonds by the Fund
ed Debt Commission. The holders
of city bonds at the highest mar.
ket rate have not been able to
command in recent years more than fifty
cents. To refund, then, at that figure will
not inure to their loss, but on the contrary
will give greater certainty to the payment
of the debt and increase the value of their
security. The new bonds would rate at
par, and thus the owner of q given amount
of the debt represented by bends would
have as great sum on the credit side of his
cash account as he now has. No one de-
sires reputation, and there is no reason
whatever to suppose that bonds issued
under compromise would ever be ques-
toned again. The people wish to pay.
The more speedily they can do SO the bet
ter they will be pleased. But they have
Enthusiastically announced their inability
and unwillingness to pay par value, and the
city is low, and for some time has been, in
the attitude of determined resistance to the
payment of the debt at its present figure.
1t is not probable that all the bonds could
be called in now, but it is quite certain
that any holders not coming in will
be resisted by the city as is now
being done in the Courts. The re-
cent decisions of the Courts give
reason for the conclusion that even if the
bondholder can recover, he will have no
method at command to give his Judgment
effect. A called meeting of representative
citizens is appointed for this week to ad.
wise with the city authorities on these sub
jects. 1t is to be hoped that there will be
cool and deliberate consultation and ex-
preston. That meeting will be no place for
" financial cranks or pronounced repudia-
tionists it should represent the business
ssgacity of the city, and the spirit of fair.
ness and fair dealing in the discharge of
our indebtedness. The desirability of
achieving settlement of this troublesome
matter is apparent to every well.wisher of
this city, and the effort should be made to
bring it about at the lowest fair figure.
There is common ground on which the
creditors and debtors may meet, consistent
with the claims of the one and the ability
of the other, and that ground should be oc-
nf1pied