The Portland daily press., 1897-03-10
THE cTTY's FINANCES.

The gross debt of the city Of Portland
at tho present time is in round numbers
So 725, Oo0. The valuation Of the city by
the last rerort of the State assessors Is
$40 900, O00 The state constitution pro-
vides that 10 city or town shall create
any debt or liability, which singly, or
in the aggregate with previous debts or
liabilities, shall exceed five per centrum
Of the last regular valuation of said city
or town." Portland's debt exceeds the
five per cent lin,itsby S725, 600, and the
borrowing power cannot be restored un-
til TINT and como more Is wiped out.
The city has In available assets lIoo
shares Ct gas stock worth probably $780,
oCo and Portland & Ogdsnsb1rg railroad
SO that the net debt Of the city is really
below the constitutional borrowing limit.
But as long as the assets are not actual
~ applied to the extingushment CT the
debt theT have no effect to take the city
out Of the operation Of tls constitution
al provision. We might have an amount
of perfectly good assets equal to the
gross debt, but as long as they were not
used in payment of that debt they would
avail US nothing to restore the borrowing
power. Before we can borrow the gross
debt must be reduced below So, 000, QUO.
1t needs no argument to show that it is
very important that the city should pos
sess the borrowing power. An indivId-
usl who was carrying On business, though
perfectly solvent, would frequently find
himself in a tight place if he could not
borrow money. The city has al
ready found itself in several tight
places tecause it has rot the bor-
rowing power. 1t may be urged
that as long as the city cannot borrow 1T
is likely to be economical, and there may
be something in that, but emergencies
are constantly arising which require
extraordinary outlays-elnergencies which
no amount Of prudence or foresight can
avert. Of course Sit is possible to put
thess extraordinary outlays into tie tax
list but that would oftentimes impose
outlays are likely to be as much for the
benefit of future generations rs for the
present one. Take the case Of Turkey g
bridge Here an immediate outlay ct a
little less than $500, 600 is demanded. The
bridge must be built, because the United
States government he's ordered it, 10
put that sum into one years assessment
would increase the taxes nearly a quarter
and iu.pose very serious burden, es-
pecially in these times CT poor business
and depressed industry. We're We pos
sessed Of the borrowing power the solu-
ton of this bridge problem would be
nerfectIy SIMPLE. We could borrow the
money at low rate IF interest and by
spreading its payment over series of
years, and thus imposing some OF the
burden on posterity for whose tenefit the
bridge is to be built as much as for that
of the present generation, could make
the building Of this bridge very easy
matter. Such extraordinary demands
are constantly arising. Last year sud
den food imposed upon the city an ex-
perditure of many thousands. 1t be-
hooyes the city therefore as early as pos
sibla to get5back the borrowing power.
At the rate we have been paying our
debt for ten years rast it will require a
Good many years to do it. But we have
the means to do it in q comparatively
short time. By using our available as
sets to pay our bonds as they become
due. we can get upon borrowing basis
in @ comparatively short time. Sound
business priniplse, it seems TO us, call
for. the adoption. Of this poicy. In July
some half q million Of city bonds become
due. Instead Of refunding them some of
our available assets, such as the gas
stock or Portland & Ogdensburg stock
ought to be converted into cash and the
proceeds used to pay them.