The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1883-08-23
LOCAL DEBTS.
Indebtedness Of states, Territories
Counties and cities.
The Rates Of Interest Paid on These
Debts.
A Very Heavy Burden for Postcri'y.

In 1880 the total bonded indebtedness
the United States other than national
that Is, the Indebtedness OF States,
Territories, counties and cities-amounted
according to the census returns. to Sl,llI,-
5S5 bi6. This was little more than one
half as much as the national deDt, WhiSh
amounted at that time TO the sum OF $z'lZO,-
4l5,37O. An effort was made by Inc census
Rnreau to ascertain when this large local
honded debt was contracted, in order to
ascertain whether the country Is rushing
into debt with accelerated speed, or
whether our progress in that direction mas
been Arrested since the dangers OF municip,,
AL extravaganza began to be recognized
a dozen years ago. Heavy local indebted
ness in most of the States is q legacy OF the
war. Before that time LOCAL uep.s were
,;oht Int the necessities of the war imposed
bnIdens 600 great to be borne, and par
nj their weight had to be thrown upon
nosterity, or the total debt OF 81 ,l0O OOO,-
60O-in round umbers-the time OF issue
of $500 900, 900 is unsDecified,, but OF tne
remainder only $85, 600 600 had been issued
prior to 1860. In that year the issue
amounted to S7,OO0,O 600. In 1891 II rose 10
II COO OC0 and continued about tne SANE me
for the two succeeding years, but III 1904
took a sudden bound upward and amount
cd m $40 900 900. Next year 1t IL to VS.,
OOO GOD. but the era Of speculation ana
municipal improvement which folioWea sne
war led 20 gradual Increase untn IN ioi1'
the year before the panic, tne an a1a 200 NJ
crease in local debts amounted to S73 ,OoO,-
600 higher figure than it has since attain,
Cd Still. the amount of new bonds Issued
yearly is about SAC, OOO OOO.,
The rates of interest paid on these local
dents range from 10 per cent. down to per
cent. More of the bonds bear per cent.
than apy other rate, or did IN 1851, thougn
refnndifg operations since that time must
10 u rasulted in the reissue of much OF the
deht at lower rates of interest. II might be
nnnosed that out Of this billion Of dollarse
eand over of funded debt very conslderaDl
mart would consist of bonds issued to refund
earlier bonds, in which case the showing
would not be such bad one, But IN 81
analysis of the purposes Tor wnlcn tnls
ii 10O 600 600 of bonds was issued 1t appea:
that onIv S13S, 900 900 was for refunding old
debt. A hundred and fifty-four r. lions
went for the purpose of funding ist.nng
dahl Int that must have been OF compare
lively recent creation, The largest Item OF
ali SlS5 600 900, is for railroad and other
aid" having been granted at tne llme
when the subsidy mania had possessiSn OF
the country, about ten years ago. Next
Games Si47 600 600 credited to 'water-works.
This is entirely municipal debt. "Miscel,,
janeons,' covers $3.50, 900, 900 of debt, and
then comes $4,000. COO which represents
unpaid bills contracted in the lmprovIm n eno
of streets. There is an item OF w 'ooV,Voo
for sewers which might be added TO me
street expenses proper, ma M su sGE",
of over hundred millions. Inc nDeranty
with which municipalities have gone into
public improvements is further shown by
he charge OF $40 100000 for "parks and
public places" while large part OF the
S4S, 900 600 yet due on PUBLIC bui dings
must also be municipal debt. That al .ne
improvements of rivers and haroors are not
proved he the fact that there is local debt
IF S36 600 600 created for this purpose.
Twenty-six millions represent the dept OF
edncation being set down as due on account
-Sssschools and lbraries.,' OF war expenses
not Vet settled, or refunded, there remains
S75, 100000. Lana,
Considerably more than half OF tne local
deht of the country is that OF cities and
towns. tn, funded and floating debt OF
the States aegregatipg only $500 ,Ooo out
of total of ST. ,200, 100000, Some OF the
States. cities and counties have SINKING
finds to offset portion OF their debts, put
the total amount i'm sinking iunus Is less
than a hundred and fifty millions. IRON
this time to the year l9Vo ao s ann u eco
local debt, ranging from go ,oVo,oVo 10 GoA,-
600 600. will fall due every year, while there
is $3.50 600 900, the payment OF when Is ue-
TERED until after the beginning OF the TWEEN
tieth century With so large an amount n,
of bonds falling due every year the local
governments OF the United States must
Continue TO be heavily burdened for a long
time, to pay current expenses ana ns AZ ,ne
same time wipe out the bonds. vi course
q largo mart of the bonds will be refunded,
Instead Of paid, and it will call for the exer.
cise nj much real craftsmanship To prevent
This easy way of def.rring the performance
of disagreeable duty from degenerating
into form Of dishonesty.