The morning call., 1891-07-22
FEATS OF FINANCE.
A Chance for the City Fathers to
Rival Jay Gould.
They Must Vault the Constitution and Juggle
Supreme Court Decision Before
They Can Pay Thar Debts.

Upward of month ago nearly all Of the
CALLS contemporaries began to publish fig
ures purportiDg to represent the city g deficit
for the fiscal year just closed Such mess
oil senseless estimates it would be hard to
scrape up anywhere. They varied all the
way from $4,000 to 100000 and were in
yarlably quoted as authoritative.
Inc course Of reasoning by which all those
results were reached would make a head
stone grin, and yet they kept on appearing
from day to day, each time showing differ
ent result and always reached by different
process of calculation.
THE CORRECT ESTIMATE.
The CALL was the only journal to state
al That time that all such estimates were
visionary, the result of Speculation and
wholly misleading. Subsequent develop
ments In the city's department OF finances
prove That The CALL was right. 1t is now
discovered with reasonable degree of GER
tainty that the deficit will reach at least
$4,000. and probably more. The out
standing warrants have not ali been count
ed, because the reports from the several de-
partnents have not been made. The
authorities will not be at all surprised to
ma that the total sum has erept up to $780,
oOO, where ex-Supervisor Boyd prophesied
month ago 1t would reach.
HOW WILL THE DEFICIT BE MET?
The all-absorbing question is, How is
lhlS delcu going to be met? In past years
IL mas been q comparatively easy problem
to solve There has nearly always been a
surplus IN few departments, and after
having been dumped into the general fund,
according to law they were ireapportiOned
to piece out the short funds. This year no
such happy dilemma will present itself.
There Will be trifling SURPRISES here and
there, but nothing like the required sum.
CONSTITUTIONAL PROVISIONS.
The Constitution is very outspoken on tue
question of finances, and may make it de-
cldeuly embarrassing for some of the city S
creditors. Section Is of Article Y reads:
No county, CITY, town, etc, shall incur any in
oeDtedhess or liability In any manner, or Tor any
purpose, exceeding In any year he income and
revenue provided for II for such year, without
the assent OF two-thirds OF the qualified elect ors
thereof voting at an election 10 bs held for that
purpose; nor unless, before or at the time OF In
curing such indebtedness, provision shall be
made for the collection OF an annual tax SUI
nclent to pay the Interest on such Indebtedness
as IL Tails due, and also TO constitute sinking
fund FOR the payment OF the prInciDal within
twenty years from the lime OF contracting the
same. Any Indebtedness or Liability Incurred
contrary 10 this provision Shall be void.
THE LAW Is A WISE ONE.
This very point has been raised before
and adjudicated in the Supreme Court
Three years ago there WAS deficit, and the
San francisco Gas-light Company asked the
Supreme Court for writ of mandamus
compelling the Auditor to sign their demand
for $4,000, or Whereabouts, due for lighting
the city. In passing upon the case Justice
Ross, referring to the above section, said it
was wise one, aud undoubtedly intended
by the trainers to protect municipalities
against corrupt misrule. 1t might, no doubt
would, work hardship on scme of the city's
creditors, out that was misfortune they
had only themselves to blame for ''All are
presumed to know the law" he said, land
whoever deals with municipality is bound
TO know the extent OF its powers. Those
who contract with it do so with reference to
the law. and must see that that limit is not
exceeded"
A CHANCE FOR EXERCISE.
In view of this somewhat emphatic
phase OF the case, it is hard to see just
where contractors and creditors representing
about S250, 900 worth Of demands are goin Z
to get of"
The city financiers in whose hands this
matter rests win have to do some magni f.
cent financial Juggling. acrobatic feats and
ground and lofty tumbling TO appease the
wrath of the hungry creditor and yet avoid
any friction with the Constitution.