The record-union., 1898-07-14
THE REFUNDING PROPOSITION.

CSAANAA0-~~~
interests, and would produce almost I'M
mediate reduction of taxation and early
extinction Of the old debt. Under nor
NAL conditions it is true that what
Mayor Land proposes would effect the
end he has in view.
The Mayor has given deep study TO
the whole involved subject Of the city
debt. He is a heavy taxpayer; he IS
familiar with the needs of the city;
he is in touch with the better busl-
ness sentiment concerning city better
ments the purity and sincerity OF his
motives are not for an instant to be
brought into question. An earnest, en-
ergetic official, he is laboring diligently
and intelligently to improve local con-
ditions, and to make his administration
a distinct credit to a city to which
he is so deeply attached.
But the conditions regarding the city
debt are not normal. There is pend
ing at this time an action, upon the
decision Of which very much depends
concerning the discharge of the city
the Kendall case-is finally disposed of
in the court of last resort, it would
be unwise to attempt any refunding.
There is a deep and widespread feeling
among the people of the city that until
that case is concluded, and the liability
of the city determined concerning the
large sum involved, no refunding
scheme should be advanced. This senti-
ment we believe to be a safe one; one
every way natural, and the result Of
profound business convictions as to
good municipal policy.
But pending the settlement of mat
ters now at issue, a movement should
be put afoot to secure the repeal Of
the law creating the Funded Debt Com
mission, since the usefulness Of that
body is at an end In it's inception it
was legally, if not morally, .defensible.
No intelligence stood more prominently
forward in support of that plan of
providing for the payment Of the debt
than the Record Union" Indeed, it
took no little punishment because Of its
ord-Union'' saw that as long as city
bonds could be bought in through the
agency of such a commission at low
figure, and held in trust for the city
and final cancellation, it was a provi-
dent thing to do.
The commission was created for the
express purpose of making purchase of
city paper at a figure far below face
value. This paper was to be held and
interest collected upon 1t. for the city,
and the resultant sum, with such tax
as was from time to time levied for the
commission, used to purchase other out
standing bonds, to be again held for
the use and benefit Of the city, and it
alone There was no special protest
raised when the city credit, advancing
with city stability and growth, the
price at which bonds might be pur-
chased was raised by legislative Act.
But the moment the city paper
reached par the end of the usefulness
of the commission arrived. 1t ought,
therefore, to be abolished, and all the
credits it holds, and upon which it
collects interest from the taxpayers be
turned over to the city. AS long as
this remains undone, the commission
has no end, according to the view it
takes of the law. 1t can forever per-
petuate itself by dealing in city paper,
more or less of which always will be
out, old and new, and thus / per cent.
taxation be enforced, 30 per cent. of
which must go to the commission, or,
in other words, float through its hands
for the redemption of outstanding in
debtedness.
1t needs no bright intelligence to un-
derstand that the commission was Gre
ated solely and only for the purpose
of buying in the old debt, the debt ex-
listing at the time Of the creation of
the commission. 1t was never contem-
plated that the board should exist for
a moment after it became clear that
it could no longer buy in city paper at
a low rate, originally 30 cents and
thereafter by amendment of the law
at a somewhat higher figure.
But when it was provided that the
commission might buy in our paper
al par, or nearly that figure, the prime
object Of the creation of the commits
sion was violated. We undertake to
gay that if a census of the thought
and wish Of the people Of the city
could be taken to-day, it would be
found nine to one in favor Of abolition
of the commission, and this judgment
would be found to be the result of
sound business consideration of the
whole subject.
When this cessation Of the work of
the commission is achieved then in
deed a plan on lines similar to those
laid down by Mayor Land will be to
the fore with the best of reasons for
its adoption, unless conditions have
again changed in the meanwhile. In
deed, to refund now, as his honor de-
sires, would probably be to perpetuate
q commission, the office of which is al
ready at an end That firmly planted
body might well say that it is to re-
main In existence to handle the re-