St. Paul daily globe., 1885-02-02
$4,000 90

Total bonded debt. 977, ,140 II
| This city debt does not, of course, include
the $250,000 school bonds and $i99,000
Ramsey county bonds, as they are liabilities
of independent corporations and should not
figure with city Indebtedness (Although the
faith and credit of the city of st. Paul, and
county of Ramsey, are pledged to pay princi-
pal and interest). any more than the proper
tion OF the S5, 600, 900 state debt, which would
be one-tenth for the city of st. Paul and
| county of Ramsey to pay. or $500, 600, some
time in the future, in paying one-tenth of
| the state taxes.
| Arguments will be made that the cities of
the state viii not have to pay any portion of
the state debt by direct taxation, on account
of the increasing revenues from railroads.
Such arguments will justly apply to the debt
OF the city of st. Paul
| The revenues of the water works have paid
all running expenses, and also paid into the
city treasury, semi annually, all interest
npon the 81, 100, 600 city bonds issued for the
purchase and extension of the works, since
| owned by the city, without having to resort
to general tax levy for the purpose.
The workhouse will also approximate to it
in case the present careful mana. ement is
continued. Wild, deliberate and studied
statements have been made by men that the
present city debt should not be increased, as
it would depreciate the city credit
1t is well to consider such statements from
practical point of view and discard all theO-
ries In the first place capital aud the money
centers care not whether the debt of cities
amounts to five, ten, fifteen, or twenty per
cent. OF the assessed valuation-exccpt 80
fur tho animal nj ic rutin in the
estimated cash value, and that cities have
the means to pay the Interest promptly, when
due, without any distress by direct taxa
ton.
The annual interest upon the present
bonded debt OF the city of St. Paul amounts
to Sl72, 500, of which $52, 500 is the annual
interest upon the water bonds, leaving bal
ance of Sl20, 600, raised by direct taxation,
which, upon the SCI, 900 900 assessed yalua-
tion (being net more than sixty per cent. of
the cash yalue) Is less than two (2) mills on
each dollar, and only a fraction over one
mill on each dollar of the cash value.
The representative bonded debt of cities is
not the debt In point of fact, and should
never distress the people so long MS the an
nual interest upon such debt ls within rea-
son, as II does not become necessary To pay
the principal any further than 10 take care of
the maturity, by extensions, which are al
wavs in order aud legitimate. The interest
is iu fact the debt and must be paid. Indi-
vidual liabilities cannot be properly classified
with municipal. There is a limit
to individual notes, both prin-
cipa and interest must be paid.
The individual dies, but the municipality
lives forever. That which is beneficial to a
city would often prove beneficial II adopted
in private business.
Ninety per cent. Of the successful business
meu prove complete failures in public mat
ters, as 1t is often the case that private busi-
ness methods fail to accomplish grand re-
suits.
think there are bills before the Legislature
authorizing the city to issue $4,000, 900 five
per cent thirty-year bOnds for the following