San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1893-07-11
THE REPORT
OF the Special Finance Committee
on the Finances of the City.


on the Finances of the City.
At the adjourned meeting of the cit!
council held yesterday afternoon, thu
special committee appointed to look int
the matter of the City'S indebtedness t
the San Antonio National bank reported
as follows:
SAN ANTONIO, Tex, July 10, 1893.
To the Mayor and Honorable City COun.
Gil:
CONDEMNATION committee appoint
ed at your last session and to whom was
referred the correspondence between his
honor, the mayor, and the San Antonio
National bank relative tO.a settlement OF
the financial affairs of the city with said
bank alike fair to the bank and just TO
the interests of the city, would respectful =
ly report as follows:
That they have carefully examined into
the existing differences with the sole pur
pose in view of settling the same upon a
basis of honorable and fair dealing with
the bank. without impairing the eff
cheney OF the city government or riSking
its very existence. in fact none other but
this end was ever SOughytO be obtained
From our Investigation we have ar
rived at the conclusion that it would not
be to the best interest of the city to &C
cept the first proposition of the bank
wherein il offers TO lend the city $4,000 a
month during the present fiscal year 1893
94,and pledge the general revenues of the
city for that year to the payment thereof
, and that the bank be paid all of the
.,reyenues of the fiscal year 1892 SO. as they
are collected. until the present debt 10
the bank of 100000 is paid off
Our reasons for so stating are as fol-
lows:
l. Because. should the revenue OF the
city continue to come in in the same ra-
ito that it has for many years past, the
bank would not be paid off until towards
the close of the present fiscal year, say
about the month of April or May next:
therefore, the $4,000 proffered monthly
would be the only means upon which the
city could safely rely, with which to meet
its current expenses and discharge any
portion of its past due Indebtedness.
therefore being an amount wholly made
Quate for its legitimate purposes. This
proposition, il accepted. would certainly
entail the necessity of increasing the
floating indebtedness 10 the hands of
number less small holders, by reason Of
Insufficient means TO meet them. The fur
ther increase OF such a class of floating
Indebtedness would, in the opinion Of
your committee, prove disastrous
z. Because at the commencement of
the next fiscal year. we would find our
selves In exactly the same position as
we are now conditioned, tO-Wit: Our
revenues all pledged and no money with
winch TO meet current expenses. By
progression the end OF each succeeding
year would find US in no better condition
than the one before. In our opinion to
continue this policy would be to tempo
rize with and not eradicate the evil.
B. Because in the opinion Of your COM
mittee 10 further pledge or ATTEMPT to
pledge the general revenue OF the city
so as TO put the same beyond the control
and use OF the properly constituted off
cersot the city may at any moment end
In disaster TO our credit. A startling H.
instrAtion Of how this end NAV at any
moment be accomplished can be had in
the fol lowing example: 1t has been
shown by the report Of the experts that
SllO,S33.23 was taken in the last eight
years from the per cent. sinking fund
prescribed by law and was spent by the
general fund. The general fund is, there
fore, certainl y responsible for its replace
ment. But how is IL ever to be replaced
II the general revenues of the CITY are tn
be pledged in advance, thus putting ali
means OF restoration beyond our reach.
Inc result at any day may be that our
coupons VIII go TO protest for want Of
means to meet them, while the special
FUND dedicated by law TO avert such a
disaster has been passed to the account of
the general fund and spent, and while the
general fuRd, which has become respon.
si6le for Its replacement, is tied up with
pledges, liens and mortgages. A disaster
OF this kind was too recently and narrow
~ averted by this city for the experiment
to be continued.
4. Because In the opinion of your COM
mlttee we believe it to be against public
policy to pledge the revenue OF the CITY
IN advance, and are Of opinion, il made,
the pledge, not the loan, would be OF no
binding or legal effect, and would sooner
or later entail expensive litigation upon
the city. O"
Your committee is further Of the opin.
lon that IL Is not to the interest Of the
city to accept the second proposition of
the bank TO issue bonds for the burmese
of liquidating its debt:
l. Because none of said money was
used for pubic Improvements, but the
same was paid out for current expenses
for what we ourselves have ate and
drank, and it would be immoral, disbon-
est and unjust TO make another genera