The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1888-01-19
CITY BORROWING

It is probable that the Legislature
will empower cities to borrow money.
The necessity for such power has been
shown in the case of at least two cities
within the past two or three years.
These are Ogden and Salt Lake, both
of which require more'money than they
can obtain from the ordinary revenue.
True, the taxes are low, but if they
were So high as to be oppressive, the
incomes would be insufficient to meet
the demands for Improvements. After
cities reach q certain point in the mai
tiers of population and industrial i'm
portsnce, they require more public i'm
provements than they can pay for st
the time; those improvements are es-
sential to the growth and pro-
gress of the cities, and to the
general welfare. Salt Lake, Ogden,
and perhaps other cities have
reached that condition where their out
lay for few years should be greater
than their incoma; hence these munich
palitIes should be given the right 10
borrow money. otherwise they will be
checked in their proper growth and de-
velopment. This city requires sewers,
more water, better streets and other
things which cost money and which
cannot be had without drawing on the
future. It is believed that the Legisla-
ture is not averse to granting the neees-
sary authority to borrow to cities, and
thai the power will be conferred in the
charters. But it will be well to hedge
the power about by sach restrictions
and safeguards that while they shall
not interfere to prevent the negotiation
of loans they will make it difficult if not
impossible to abuse the credit of the
corpora tons. and iufict burdens and
obligations which the taxpayers are
unwilling or unable to bear. 1t would
be dangerous to open wide the doors,
and allow corporations to go out and
borrow as long as their credit was worth
anything. It would also be unwise and
unjust to permit any considerable Dor
rowing that was not authorized
and sanctioned by those who will
b'come the debtors-the taxpayers.
The ordinary revenue is sufficient 70
the current expenses, and extraordinary
expenditures ought first to be submit
ted to the people for approval. In
other words, the power to borrow ought
rot to be vested in the City Council
until the propositions to borrow have
been passed upon and approved by the
tag payers. Nor should a bare ma
jerity vote on proposition to create a
debt be sufficient. a two-thirds, if
not three-fourths, majority should be
required before loan can be con-
tracted. If the proposition is fair
and reasonable one, three-fourths Of
the people will cheerfully sanction it; if
it is not fair and reasonable, it shou d
fail.
Again, it will be we'll for the Legjsla
ture 10 forbid the issuance of bonds
even if the tax payers shall vote them,
except for a specific purpose, and then
not in excess of certain amount, this
latter being regulated by the corpora
ton revenue; and provision should be
made for the payment of all loans con-
tracted by requiring the setting aside Of
q certain percentage of the entire
revenue for the redemption of bonds
While the cities want power to borrow
they do not want, or should not be per-
mitted, to borrow more than they car
pay. Also, if reasonable provision shall
be made for payment it will be easy tc
obtain money at low rate OF interest
This matter of borrowing is import
ant to the people. and while the latter
expect the Legislature to deal justly
and GENEROUSLY with them, they also
expect the Legislature to be wise.