Daily capital journal. (Salem, Or.) 1896-1899, 1899-01-20
CITY FINANCES.
Discussion ofthe Question Of Bonds or
No Bonds.

Il W. L9lAas
| EDITOR JoURNAL.--No bonds M
mortgages are good notices 70
corporations and lndlVlduals-wh,
are out OF debt, or not seriously ln
Yolyed, but, TO the Delinquent debtor
the mortRage Ia sometimes the onl!
means Of hlI salvation, he must elthe
70 secure his creditors or be sold ou
by the sheriff. Private corporation
too, in financial straits are often saYes
from ruin only by Issuing long time
bOnd., secured by their property
franchises and everything else Of
value they possess or control, depend
Ing upon future growth and develop
ment for relief.
Public corporations although not
subject 10 the liability Of the sale Of
their property under execution or
required 10 respond IN a court Of
bankruptcy on account OF financial
delInqencies, usually regulate their
conduct 10 their creditors 10 accord
with that Of private institutions, un-
constrained by the menace OF PEN
atty 10 urge them IN be honest, they
are Just 20 ther creditors from high
sense OF honor The exceptions are
few.
The city Of Salem Is a delinquent
debtor, 80 involved an 10 be unable TO
reduce the amount Of Its overdue and
dishonored paper, indeed with tax
levy up 10 the legal limit 10 can barely
raise an amount equal TO It's current
expenses, including the interest on
It's Indebtedness, leaving its s75, 500 out
standing warrants unproYided for,
yet, In the face OF this state OF facts, |
It's council, Ia framing new charter
for the future, influenced by bad ad-
vlsors, absolutely Ignores the situa-
tlon making no provision whatever
for the council 10 act for the prOtec.
tion, OF the clty's credit and .hOnor.
Every dollar OF this Indebtedness is
conceded to have been regularly aud
Iultly incurred, It's greater portion
representing the cost OF the city hall,
nearly all OF the remainder caused by
the loss 10 the city Of one years tax
levy, by reason OF the change In the
mode Of assessing and collecting city
taxes made by the legislature ia 1893.
but few years since, the financial
Integrity OF the nation was preserved
by the prompt action OF the president
Ia Issuing one hundred and lfty mil q
lion United States bonds To maintain b
our monetary standard, an act Of y
Justice ~ our creditors redounding 10 +
our national honor and credit. G
In the history OF our own state .
when the emergency came we re- >
'ponded promptly with our bounty A
md relief bonds and the patriotic act /.
VAS approved by the people.
IL Is probable that per cent bonds
% run not 10 exceed 30 years az pro.
lded tor In the charter adopted by the %
olnt committee OF citizens and alder r,
hen' would command par or perhaps o
small premium. The failure TO make
ome eifectiYe provision In the charter
authorizing the funding OF our 1ut.
tahdlng warrants Is 10 refuse 10 pay ~
IN honest debt, aud refusal 10 pay is
iEPUDlATIoN; no good.cltlzen will
dyocate reputation, we hear no 81
such talk upon the streets" know OF
4 but one who has acted herald for W
hose who cry "leJ the bond holder hi
'ait as the warrant holder" or who 2
as exhibited In cold type any "such 81
Imllar symptoms OF reputation. -
Our people are honest In their prl- -
ate affairs, and believe viii require ~ ~
Iunlclpal affairs 10 be 80 conducted. en-
The action OF 'the city council IN u,
le matter OF framing a charter is OF 81
'urse Informal aud without any legal
eight or authority; the power. "a !
lake charters not being among those ne
inferred by It's charter, hence the -,
nod citizens OF Salem, who are the te,
al parties 10 Interest, should see 10 su
that this proposed charter, before -
becomes law, provide, for confer
ng upon the council ample authority (
iund the present outstanding war
nts by Issuing bonds, debentures,
Itillcates or other evidences OF In. q
Otedness, on either long or short -
me, as II may In It's Wisdom ordaln,
the lowest rate Of interest obtain
no, J, II. ALBERT.
Salem, Jan. 20, 1899.