St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-12-23

ST. PAUL HAS THE CREDIT.
Comptroller Roche Tells of Her
Financial Basis, and Strength
in the Money Market.
CITY COMPTROLLER'S OFFICE,
GI.I.s- CT,

ClT1 COMPTROLLER OFFICE,
CITY OF ST. PAUL. Dec. 20, 1855. !
The people of the city of st. Paul
have hOnOred Inc for tweDty-four con.
secutive years by electing me to the
Office of city comptroller, which | APP
preciate with the deepest gratitude, and
am happy to state that the credit
of the city of st. Paul, in
the financial centers, has reached
the golden pinnacle, accomplished
through the prompt payment of the prin-
cipal and interest of her bonds, and
keeping the debt strictly conservative
within reasonable percentage of the
assessed valuation of roperty-issuing
no bonds unless for purposes absolutely
necessary representing large assets,
under special legislative actS-whicl
places complete check and limit upon
the power to Issue bonds, or to increase
the debt, giving the people an Opportu-
nifty to consider the necessity.
The present bonded debt is IS, 3SS, 900,
being a fraction over per cent of tho
assessed valuation of property for the
year 1888, or 219 per cent of the cash
value. while the substantial assets,
without initiation, exceed SS,0O0,OOO.
Dcducting the debt from the assets,
the balance will represent | .37lS plus per
cent premium upon the assessed valua-
ton of property, or $3.50 plus of l per
cent premium upon the cash value
for the year 1888, in favor of the prop
erty owners. But as this per cent pre-
MUM can not be paid directly to the
property owners, the great benefit they
derive from it is in the strength given
to the city in her financial standing.
which is the foundation of the existing
individual and public prosperity.
The census of the year 1885 shows
1887 souls. The city directory for
this year QSSS) contains 70,254 names,
showing an increase of S,003 names over
the year 1887. If by using the multiple
of 3, employed by most cities in
figuring population in the absence of
the census, will represent 210,70 souls.
But to be on the safe side by using the
multiple of 212, the most conservative
method of computation every adopted,
the population on the LIST of March, 1888,
was 1868 souls.
In considering the financial condition
of a city, the rate of debt per capita of
population should not be considered, as
in some cities large part of the popu-
lation own no property, while in st.
Paul most people own their homes.
The vital points to be considered are
as follows:
of the debt promptly paid when due?
Second-What per cent of the as
sesSed valuation of property is the debt?
Third-What proportion of the esti-
mated cash value Of property is the as
SeSSed value?
FOurth-What is the annual interest
on the debt. and what is the average
rate per cent upon the whole debt?
Fifth-Are the assets substantial and
do they cOnServatively offset the debt?
The city of st. Paul has issued no
bonds for several years for the purpose
of redemption, but levied direct tax
upon all of the assessable property for
the payment of all bonds as they ma
ture or used the surplus revenues, other
than taxes, for the payment of bonds.
For example: The city bonds redeemed
in the year 1887 were promptly paid out
of the tax collections levied in the pre-
viOus year 0SS6) for the purpose, while
the city bonds maturing in the year 1888,
were redeemed out of the surplus liquor
licenses in excess of 200 licenses, which
consider is absolutely the true policy
for all cities to adopt when their bonded
debt, like the debt of the city of st.
Paul, represents large assets, and the
percentage upon the assessed valuation
of property is within reason, in place
of levying an annual tax upon property
for ''sinking fund.-" endangering the
finances and distressing the people. as
in many cities where sinking funds
have run into corruption funds, ending
in dishOnOr and bankruptcy.
1 consider it an indication of financial
weakness for city having to resort to
Ievying an annual tax for sinking
fund.
When it is considered that cities are
in excellent financial condition when
the debt is 5 per cent of the assessed
without any assets, regard
less of the per centage it bears to the
true cash value, then the financial
standing of the city of st. Paul, with
her IS, 00O,O 900 assets, is surely grand.
Yours truly, JOHN w. ROCHE,
Citv CnrnnfroIIar