The daily morning journal and courier., 1904-12-20

six months, no two payments become due in the same calendar year. -
 There exists at the present time a floating indebtedness of about s250.009 created by the failure to realize the estimated income, and unusual expens- es forced upon the city by court judg- ments, etc.
 The charter provides that the board of finance shall estimate the income Of the city, and may appropriate a sum for expenditures equal to the estimat- ed income. When these figures have been approved by the board of alder men the amount appropriated for ex- penditures becomes a fixed, charge, while the estimated income remains an unknown quantity. If the actual in come falls short of the estimated in come deficit is created, and money is borrowed in anticipation of taxes. If allowed to accumulate, this indebtness may reach enormous proportions, and the board of finance becomes in effect a debt creating power, condition not Econtemplated by the framers of the charter.
 During the past three years the float ling indebtedness of the city has been materially decreased, but the net amount to-day is practically the same as it was at the time of the consolida- tion of the city and town governments.
 During the past seven years the city
 has failed to realize it's estimated in come six times, and has realized an ex- cess above the estimated income but
 once, with the net result as stated.
 It has been suggested that the city
 be bonded for it's floating indebtedness.
 This indebtedness was created by cur
 rent expenses and for that reason
 should be paid from current receipts,
 rather than from the proceeds of a
 bond issue.
 If the proposed plan of collecting
 taxes on. the first of January is carried
 out, it will not be necessary to borrow
 until November, and these notes can be paid in January. making an interest charge for the two months of about ,6OO. The amount would be gradually reduced so that at the end of ten years , the average annual interest charge would be but $500. To issue bonds al 8 1-2 per cent. would create q fixed in
 terest charge of $S,75O annually, as against $S0,000. In the interest of econ omy this large amount shoul be saved It must be apparent to anyone Whe will carefully consider the existing con ditions that radical change should bt
 made in our financial system. Whether
 the proposed plan is the best that car be devised remains to be seen. A full
 discussion of the matter may develop
 something infinitely better, and fol ] that reason I ask that the resolution bt tabled for future consideration.
 It will be observed that the resolution
 proposes three radical changes in oui financial system, viz.
 } First-By advancing the date upor
 which taxes are due and payable iron } ing discount on advance payments. y Secondly providing for the grad ual payment Of the floating indebted ness by appropriations.
 Third-By making an annual adjust , ment of discrepancies between actua expenditures and the estimated income The adoption of these amendments t : the charter will place the citys finances
 upon a more business-like basis, anC will result in a substantial reduction II } the interest account, which existing N The city appropriates about one hun !, dred and fifty thousand dollars annual ; Iy for interest payments--a million anC d half every decade. This amount i : made up of three items, viz: First-Interest on the bonded indebt < edness.
 5 Second-Interest on money borrowet 5 in anticipation of taxes.
 Third-Interest on money borrowet
 on account of the floating indebtedness ' The first item is necessary. Under : ] sound financial system the second am
 third items would be wholly unneces sary.
 g When one considers that each yea more than ten per cent of the total in
 come from the grand list is appropri 2 ated for interest charges 1t becomes ap
 parent that a change in the system 1 l desirable.
 ! This system of borrowing is a5 sort . Y endless chain affair. We begin to bor f row in January in anticipation of taxe ] and continue to borrow until July