The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1895-11-08

the charter that all loans in anticipa-
tion of the current: revenues shall be
entirely cleaned up at the end of the
fiscal year, very easy thing to do if
no more than One-third of such
revenues are anticipated.
But what have we done and what
are we doing? Our tax levy this year
is, for all purposes 100000. All of this
sum save perhaps sinking fund, 81, 900,
and deficiency, $4,000 was levied to
cover actual expenses which must in
evitably be incurred in conducting
the affairs of the city during the year,
and no part of it ought to be antici-
pated, because the fund cannot posi-
oily be restored before the end of the
fiscal year. Again, what will be the
"taxes and revenues of such fiscal
year," A very large part of the taxes
for any year is Of course the tax upon
real estate, and our experience teaches
US that but very small proportion of
such taxes are. paid prior to June 1st,
SO that no prudent person would bor-
row expecting to repay during the
fiscal year, from taxes upon real
estate. 81
1t is very doubtful whether there is
any takes and revenues of a fiscal
year." until the taxes are actually
levied against the property and are in
process of collection, and for the pres
ent year the tax levy has not been
completed, and will no be for some
time to come.
With this condition of things we
have already borrowed in anticipa-
tion of current revenues in round
numbers 1924, 600, and SD, 200 more is
wanted. 1t is not doing violence to
our past experience to say that the
amount already borrowed is in excess
of the entire taxes and revenues which
we will actually receive and which
are now in sight for the current fiscal
year. We have no right to anticipate
one dollar of the license fund.- because
no man can say that any license
money will be received until it is
actually paid in. Its payment de-
ponds wholly upon the will of persons
whomay or may not apply for license.
Past experience teaches US that
special assessments are among the
most doubtful sources of revenue.
Probably 1000 of special assessments
with accrued interest and penalties
now stand upon the books uncOllected,
some of which are in litigation, and
nearly all of which are long since due,
and, the prediction is ventured that
not fifty per cent of these assessments
will ever be collected. No sagacious
business man would borrow money
and pledge his business integrity that
the same should be repaid from funds
so prOblematical as our license fund
and special assessments.
What is here said about license
funds may be said about water rents
as well. Water rents are collected in
advance, and it cannot be. said that
any person or number of persons will
consume city water for the next six
months; this depends entirely upon
the will of the consumer.
1t is too clear for sincere discussion
that we have already anticipated cur
rent revenues very much beyond the
legal limit.
1t is said that the banks of the city
have declined the new loan asked for
and they are criticised for so doing,
but it IS confidently predicted that
| this refusal, based as it is upon true
reasons, actually existing, is the most
wholesome lesson which we have been
taught for years. We dislike very
much to have our greatness bellttled
but it is a wholesome lesson neverthe
less, to learn that we are not SO great
after all. Norman is pleased to heal
that it is.doubtful whether his credit
is good, but when this information
comes from his long tried and always
true friend, itiSigood medicine though
perhaps little bitter: it leads him tt
study himself and to look for the true
cause of his condition and standing
The banks of the city have Away!
been it's most cheerful lenders, anC
this refusal to loan to the city now
ought to and will induce the proper
authorities to take such steps as il
their good Judgment will remove al
stains from the credit OF the city
This can OnlySbe done in one way, an(
that is, rigid and long continued
economy. There is no glory in pro
curing this'lo elsewhere; the coun-
Gil would dislike to involve frienc
in trouble by fiattering him into max
ing loan to the city when it is with
in the power-of any one tax payer tc
prevent payment Of the loan.
Let no one, be misled, but let oul
affairs be conducted in a credltablt
manner, and above all let everyone in
terested in the, prosperity of a city
second to none in resources, TO THAT
extent that our credit may speedi
ly be restored, and we be for the first
time in many years placed upon
solid financial basis.
We owe our thanks rather thar
our criticism, to the banks,
LORIN CRAY.