The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-24

Mr. w L. Taylor, in his speech Tuesday
night, recalled the circumstances which led
to the adoption of the constitutional amend
ment limiting municipal Indebtedness. The
case will bear stating in detail. The provi-
sion referred to is as follows:
No political or municipal corporation in
this State shall ever become indebted, in
any manner for any purpose, to an amount
in the aggregate exceeding two per centum
on the value of the taxable property within
such corporation, to be ascertained by the
last assessment for state and county taxes
previous to the mourning of such Indebted
ness; and all bonds or Obligations IN excess
of such amount, given by such corpora
lions, shall be void.
This provision became Incorporated in the
Constitution by vote of the people March
a. 1881. 1t was submitted as an amend
ment along with six others at special
election and was adopted by much larger
majority than any of the rest. The people
recognized it's Importance, as any one will
on reading it. The words "No political or
municipal corporation in the State" in
clude every county, township and incorpo-
rated city or town in the State, and the
limitation on Indebtedness applies to all
these. The provision has been in force
more than sixteen years and has had
powerful effect in restraining the creation
of municipal Indebtedness.
For this beneficent provision in the Con-
stitution the people are indebted to the
Democratic party of Indianapolis Justice
must be done though the heavens fall and
justice requires the admission that but for
the Indianapolis Democracy the 2-per-cent
debt limitation provision in the Constitu-
ton might never have been thought of. 1t
came about in this way: In 1874. after a
long period of Republican rule in which the
city prospered and progressed, the Demo-
cratic party came in control of the city
government and remained in power two
years They were the most disastrous years
in the history of the city. 1t was period
of misgovernment extravaganza and cor
ruption, and at the end of it a bonded debt
of 81, 209 900 had been created, all of it bear
ing $40 per cent. interest. Taxpayers
were indignant and alarmed. With city
debt increasing at that rate and at that
rate Of interest, and with no restriction,
they saw nothing ahead but confscation of
their property and ultimate bankruptcy.
The result was a concerted movement
quiet but powerful, irrespective of party
and representing the interests of taxpay-
ers as against those of taxeaters, for con-
stitutional amendment that would put a
limit to the creation of municipal indebted
ness The amendment was brought before
the Legislature adopted in 1877, readopted
by the succeeding Legislature, submitted to
the people and by them ratified. It's pres
ence in the Constitution is due, under Prov
idence, to the action of the Indianapolis
Democracy. 1t is a singular coincidence
that sixteen years after its. adoption by the
people, when the city fOr the first time
found itself with a debt below the consti-
tutional limit, the same party, once more
in power, should again be engaged in fore
ing the bonded debt up to the 2-per-cent.
limit. The people still paying interest
on a large part of the debt created between
1874 and 1876 and the present administra-
ton has made an addition to it of $57000
for which the city has nothing to show as
yet but hanging garden. That, however,
is another story. The point of the present
one is that the credit of first suggesting
amendment to the Constitution limiting mu-
nicipal Indebtedness belongs to the Demo-
cratic party of Indianapolis.