Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-11-06

Excess of bonds over IS per
cent. of increase in taxable
values from February /.
1891. to November l. 1894. IS 4o9,70o4 G
TOO MANY BONDS ISSUED.
Said statement No. shows that with an
authorized bond limit of is per cent. of
taxable real-estate values, our bonded in
debtedness amounts TO nearly II per cent
of said values, and that we have now
but little over / per cent of our limit for
further bond issue-viz., 1888 3.4i.
This narrow limit, statement No. 2.
shows to be due 10 the fact that we have
been too prodigal In the issue of bonds,
since the increase in our bonded indebt
edness from February !, 1884, to Novem-
Der l. 1894. has exceeded the Is per cent.
in bond ISSUE which the increase in real
estate values during that period war;
ranted by $i09. 7O0.i6. But it may be said
that a new assessment of our taxable
real estate Is to be made next year and
that inasmuch as our last assessment
shows an increase In taxable real estate
values OF more than 81. 600. 900. that the rev
assessment will show like increase.
IL we were satisfied that our new as
sessment would show an increase Of over
100000 We would feel less alarmed at
the rapid growth of our bonded indebted
ness.
When we remember. however, that our
last assessment was made In 1890, a year
when the real estate market was very ac-
tive and real estate sold regularly at high
prices. and that the assessment was based
on these facts. and that our next assess
ment will be made next year, and that
real estate Is at this time much depressed
without a good prospect of an increased
activity in the near future we think It
question of great doubt whether there
will be a substantial increase I'm the new
This being So II is evident that the city
should not increase its bonded indebted
ness until a substantial increase In its
taxable values is had. except In cases CT
urgent necessity.
URGENT DEMAND FOR WATER.
A case of urgent necessity for an in
crease In our bonded debt and which will
materially reduce our already too harrow
margin of bond limit. already confronts
u.s. Your committee refers to the all-im-
portant water question. 1t is conceded en-
all sides that at an early date, an issue
OF bonds Will have to be made 10 provide
the necessary water for the aeaIth of cur
people and the protection Of their prop
erty.
II the meter-system Is adopted the
issue Of bonds for that purpose will
amount to 100000. If we discard the
meter-system and adopt the plan OF laying
issue $4,000 OF bonds to pay for the adj
ditional water-mains. The Superintend-
ent Of the Water-Works insists that the
laying Of new water-mains will require
an additional expenditure Of $4,000 to
supply the additional pumping capacity
needed to supply the new mains with
water.
Granting that the superintendent OF
water overestimated the need Of addition
al pumping capacity. and that no great
expenditure for this purpose will have
10 be made for several years, yet 1t is
apparent that the adoption OF either the
meter-system or the laying OF new mains
will necessitate a large issue OF bonds
which VIII materially lessen our present
narrow margin OF $685. l23.A The pres
ent pressing necessity for the Issuing Of
bonds to provide sufficient water for our
people shows the absolute necessity OF
our always maintaining a good surplus
on margin Of authorized bonded iniebt-
edness
CAUSES BONDS TO SELL Low.
There are other good reasons why such
good surplus should always be main
tanned. a city with a large bonded debt
usually finds its bonds duh OF sale. and
wnen q sale Is made II Is usually below
par The city OF Richmond has suffered
loss IN the sale Of It's bonds for several
years. owing to the fact that its bonded
Indebtedness has grown too rapidly and
mas exceeded what the increase in Its
taxable real estate values warranted.
Your committee deem this Question of
bonded Indebtedness one Of the most inn
portant questions which its duties re-
euire Il to consider. and therefore Zee,
consu1ned % impress On you the ne