Every evening, Wilmington daily commercial., 1906-04-14
AIseAlLANEous REooRn
our Illegal floating peht.

Our Illegal Floating Debt.
The hope expressed by Chairman White
Of the City Council finance committee,
In an interview printed in yesterdays
Every Evening, that the city might
manage to "get along" during the coming
6scal year on the present tax rate e-Sl so.
on the SlO0-is as vain as any earthly
wish can be. Its contamination is only
possible by a continuance Of the illegal
practices Of borrowing money and creating
floating debts, which have been the rule
in the city finances for more than ten
years.
Chairman White frankly admits that
tho deficit at the close Of the current year
will be between $4,000 and $4,000. This
Is the result of the sl.50 tax rate BY
means Of an increased assessment the
revenues Of a Sl.5O tax rate may reduce
this floating debt during the course of
the next hscai-year, but it will be abso-
lutely impossible TO wipe it out. The most
that could be hoped for would be a re-
duction Of possibly 25 per cent, and this
is exceedingly doubtful.
Under the law there is only ono thing
for the City Council to do-lay a tax rate
that will produce revenue sufficient to
meet every demand upon the city during
the ensuing fiscal year, including the deficit
oi $4,000 or $4,000 that is bound
to 30 created this year. Under the law
tho City Council has no authority to
create a dollar Of floating indebtedness.
The City Councils Of the past which
created and continued the debts that have
reached such large proportions were guilty
OF deliberately setting aside the plain
mandate Of a law that was passed for the
specific purpose, among other things,
OF making it impossible for the City Coun-
Gil to extend its expenditures beyond its
receipts in the course of any one fiscal
year, except in the event of an extraor-
dinary and unforeseen emergency, for
which the procedure to be adopted was
carefully and explicitly defined.
We suppose, however, that the present
City Council viii continue in the illegal
and cowardly course laid down by its
predecessors and deliberately disobey
the plain injunction of the law-as il is
already doing in borrowing money for
current eXpenses-by laying tax rate
which win absolutely insure another
deficit at the close of the fiscal year 1867.
And so the borrowing process will continue
indefinitely, until the Legislature takes
hand and authorizes the funding Of the
floating debt and its addition TO the
bonded indebtedness Of the city.
IL is altogether probable that to raise
revenue sufficient 20 meet the last dollar
Of next year current expenses, including
the paying off Of the floating debt that
viii be accumulated Ny the close Of the
pending current fiscal year, would require
tax rate Of at least Sl.75 on the Sl0O.
This would be a severe burden upon the
people but the financial imposition would
not be nearly so disastrous as is this con-
slant exhibition of deliberate defiance
of the law. If murderers and thieves
were permitted to walk our streets with
out the slightest attention being paid TO
their crimes, il would not constitute a
more demomlizingohie t-lesson-although
it would threaten more Immediately danger
10 life and property than is afforded by
the reckless contempt for law displayed
by our City Council in its performance
OF the public duties enjoined upon it by
the people.
Years ago the Legislature enacted a
law in which il was specifically ordained,
in consequence Of a well-dehned intent.
that the City Council should not spend
a dollar in excess Of its revenues in the
course Of any fiscal year. Years ago
similar restrictions were imposed upon
our Board Of Public Education. Yet the
latter body without authority and in
defiance Of law, incurred a large debt
which is still in existence. IN the con-
struction Of the High school-pmnging
blindly into the project without the re-
motest idea Of whore the money was to
come from while the City Council spurns
the law with absolute contempt. year after
year in the creation of a floating debt
How long shall this amazing condition
OF affairs De permitted TO continue, good
citizens Of Wilmington