The times. [volume] (Richmond, Va.) 1890-1903, 1894-11-06
TOO MANY BONDS ISSUED.

This narrow limit, statement No1I
shows TO be due TO the fact that we
have been tCo prodigal in the issue of
bon g, since ;he Increase in our bonded
Ind ebtedness from February 1, 1891, to
November |. 1894, has exceeded the
eighteen per cent. in bond issue which
the increase In real estate values during
thSt period warranted by $40J 700.46 But
II 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
100000, that the new assessment will
show like increase.
II We were satisfied that our new
asst ssment would show an Increase Of
over $.0O0.O00 we would feel less alarmed
at the rapid growth OF our bonded in
debtedness.
When we remember. however, that our
last assessment was made in 1890. a year
when the real estate market was very
active and real estate sold regularly at
high prices. and that the assessment was
based on these facts and that our next
assessment will be made next year. and
tsat real estate Is at, this time much
depressed, without a good prospect Of an
increased activity in the near future, we
think II a question OF great doubt wheth-
er there Will be substantial increase
In the new assessment over the present
assessment.
This being so. it is evident that the
city should not increase its bonded in
deb.edness until a substantial Increase
In its taxable values is had, except in
cases OF urgent necessity.
case of urgent necessity for an in
crease I'm our bonded debt and which will
materially reduce our already too mar
row margin of bond limit already con-
fronts us.
Your committee refers to the all-impor-
tant water question.
IL is conceded on all sides that at
an early date an issue OF bonds will
haze TO be made TO provide the necessary
water for the health OF our people and
the protection of their property.
THE METER SYSTEM.
II the meter system is adopted the
issue OF bonds for that purpose will
amount to 100000.
III we discard the meter system and
adopt the plan of laying additional water
mains. We will have to issue $4,000 of
bonds to pay for the additional water
mains.
The superintendent of the Water Works
insists that the laying of the new water
mains will require an additional ex-
ditional pumping capacity needed to
supply the new mains with water.
Granting that the superintendent of
water overestimated the need OF add-
great expenditure for this purpose Will
have to be made for several years. yet
Il is apparent that the adoption of either
the meter system or the laying of new
mains will necesstate a large issue OF
bonds. which will materially reduce our
present narrow margin of iSS.l23.44
The present 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 Indebtedness.
There are other good reasons why such
q good surplus should always be main
tained, city with Large bonded
debt usually finds Its bonds dull of sale.
and when sale is made /; is usually
below par.
The city Of Richmond has suffered a
less In the sale OF its bonds for several
years. owing TO the fact that ITS bonded
Indebtedness has grown too rapidly and
has exceeded what the increase In its
taxable real estate values warranted.
Your committee deem this question
Of bonded Indebtedness one OF the mos
important questions which its duties re
quirc II TO consider and therefore fee
constrained TO impress on you the ne
cessity of great caution and care before
any further Increase Is had
IL Is far better that the execution OF
plans for the public good which have
merit and are desirable. should be post
poned rather than they should be car
ried out and the credit of the city be
thereby impaired.
cUHBENT RxPrNsKs.
We will next consider the subject OF
the current receipts and expenditures OF
me city. as disclosed by the following
statement.