The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-03


payable semi-anuually, amounts to $loo DOS oO;
In this list, however, not included the $5OO.OO0
outstanding Belt railroad bonds, for the reason
that the city holds like amount OF tnat COM
papy's first mortgage bonds to Offset that IN
debtedness In addition the city owes $4,000.
falling due Dec 81 next. borrowed last week to
take up q loan for the same amount made year
ago. This may be called the standing temporary
loan, and small amounts will have to be bor-
rowed at short time to defray the current ex-
penses for the months until taxes commence to
come in. as was done last year
The Mayor then stated that "the original
amount of this standing temporary loan, which
was caused largely by the endorsements and
losses of ex-Treasurer Pattison, was 500, 900,
but the last Council reduced the amount 500. 600
I during its first year This was only made pos
| sible by the collection of large amount of de-
, linquent taxes during that year, which had
been accommodating for years While L hope
you will be able to reduce the amount of this
annual loan. made in anticipation of our current
revenues to meet running expenses. very much
fear you cannot do SO, at east this year. If the
city should get any material financial relief
from the Legislature next year. which can be
used to wipe out that Indebtedness. L hope 1t
will be done, and that no future Council will be
forced to allow such an annoying lncumbrance
/ to be placed on the citys credit.
1T is apparent that the 900 of our old
bonded indebtedness, falling due year from
this time, cannot be then paid. except by re-
! newal in some form. L trust the finance COM
mittee will take prompt steps to make orange
ments to refund that part of our debt at a lower
rate of interest. / also ask that committee to
renew the effort made two years ago toward re-
funding the larger sums falling due in the near
future, at lower rates 1t is certainly not inn
probable that at least the holders of the $780, 1000
of bonds maturing in 1898. would take longtime
or Al per cents in exchange for them, without
waiting until their maturity. This city ought
not to be paying such ruinous rates of interest
it now H. If any encouragement can be re-
ceived Looking to the refunding of even con-
siderable part of our Indebtedness. a representa-
tive should be sent to New York at an early day
to conduct the negotiations. You will remem-
Der that two years ago the city tried the expert
ment offplacing the 800, 900 loan made for one
year at that time, among our people here at
home. Bonds ranging from 500 to 81. 900 were
put sale at the treasurers Office. But $32. 900
of the amount required was taken here, how
ever the remainder being sold in New York.
The matter was not very we'll advertised at that
time. / believe, with longer time bonds, draw
ing or Al per CONT the $llO, 600 falling due one
year from now could be placed among our own
citizens. request that this matter receive the
consideration of the finance committee"
The municipality, he says should be able Ito
keep pace with its individual citizens in the
matter of improvements, but he fears 1t will not
be able to do so until its income is in some way
increased Under the act of 1877 the city is
limited in it's rate TO 80 cents on the 800 of
property values, and the Winter bill of 1885
ta.ns similar limitation clauses. According to
Hicks Statistics of Leading Cities of the
United States" compiled in January. 1887 but
other city has so low rate. During the
ten years this law has been in force the city has
managed, by close economy. to get along how
ever, and. on the whole, the law has been pop
ular and beneficial one. During these years
:he people have been In condition to pay
heavy taxes They preferred not to be taxed to
accumulate a sinking fund with which to pay any
part of the bonded debt at its maturity, the law
referred to specifically abolishing the sinking
fund previously provided for. and showing upon
it's face that it was the purpose to refund. in
stead of to pay. the same. OF course it must
be accepted as settled that the great bulk of
this old debt will have to be renewed, in some
form, as it falls due. Hence, he did not take
the 81, 400, 900 of permanent Indebtedness into
account except as the one hundred thousand
annual interest on that debt affects current rev.
enues.
Taking last years assessed valuations OF prop
erty and the city's net income from miscel-
laneous sources basis, liberal estimate
for this year, from similar sources is the sum of
$500 COO Last year tho seven principal items
of expense follows: