The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-26

that the city of San Francisco would al
find themselves knocking in vain at the
city treasury for the satisfaction OF claims
long since overdue.
AT the committee meetings of the board
any proposition involving the expenditure
of money entails a long discussion as to
the condition of city finances.
Downtown the merchants have ceased to
think of the condition of funds, but are
bordering on the question whether they
ever will be paid for the goods, wares and
merchandise they have supplied the city.
Not long since contractor for supplies
for the prisons refused to furnish any more
goods for the reason that his demands on
the treasury were not available. The con-
tractor for the burial of the dead refused
to make 1nterments while the matter of
payment for his labor was involved in
doubt.
Suggestions of nun icipal impecuniosity
are continually obtruding themselves and
the whole world may know to-day through
the columns of the daily press that San
Francisco is hard pushed for money to
meet current expenses. The city has done
many things that would if done by an in
dividual justify his creditors in an applica-
ton that he be declared an involuntary in
solvent.
For several years past there has been a
deficit in the funds set apart for current
expenses. Last year there were floating
claims against the city amounting to about
$500, 000 this year there will be a deficit of
like amount. Next year the deficit will
in all probability be still larger. Notwith
standing the shortage in funds there are
many important works that should now
be prosecuted that are not even given con-
sideration, for the reason that it appears
that the Supervisors are powerless to move
under the supposed restrictions and lmita-
tons that have been placed on the use of
public money by the laws of this State.
1t is this condition of affairs that has led
to the serious consideration of the subject
of finances. The merchants who are wait
ing for the money the city owes them
think there is remedy for the financial
trouble and they are anxious that it be APP
piled. They contend that the Supervisors
are vested with full power and authority to
pledge the city's credit and that, having
pledged its credit, they are vested with full
power and authority to make good all its
obligations. They are satisfied to accept
audited demands against the city treasury
for the various amounts due them, but
even that degree OF satisfaction is denied
them. The official acts necessary of per-
Torrance before their demands can be pre-
sented to the treasury are estopped by
some provision of the laws applicable to
county governments. There is partial
remedy for the stringency which is certain
to recur next year in the law governing
the creation of bonded Indebtedness by
cities, towns or municipal corporations.
1t was provided by an act Of the Legisla-
ture of March 10, 1889, that whenever the
legislative branch of any city, town or
municipal corporation shall, by ordinance
passed by vote of two-thirds of all its
members and approved by the executive of
said city, town or municipal corporation,
determine that the public interest or neces-
sity demands the acquisition, construction
or completion of any municipal buildings
bridges, water works, water rights, sewers
or other municipal improvements, the cost
of which will be too great to be paid out of
the ordinary annual income and revenue
of the municipality, they may by ordi-
nance passed by vote of two-thirds of all
its members and also approved by the ex-
ecutive, call special election and submit
to the qualified voters of said city the
proposition of mourning debt for the pur-
pose set forth in the ordinance.
The limit of Indebtedness fixed by the
act of March 10, 1889, was per cent of the
assessed value of all the real estate and
personal property of such city, town or
municipal corporation; but by an amend
ment of this act, approved March Ii, 1891,
the limit was raised to Is per cent of the
assessed value of all the taxable real and
personal property OF such town or munich
pal corporation.
The act provides that all municipal
bonds for public improvements issued
under the provisions of the act shall be
of character of bonds known as SERIALS
and shall be payable in the manner fol-
lowing: One-twentieth part of the whole
amount shall be paid each and every year,
together with the interest on all sums un-
paid at such date. No bonds shall be of
less denomination than 500 nor of a
greater denomination than $1,000. The
bonds must be sold at not less than their
face value, and the proceeds of the sale
shall be placed in the municipal treasury
fudd, and must be applied exclusively to
the purposes and objects mentioned in the
ordinance until such objects are fully &C