The Detroit times., 1910-07-27

Probably rescinded by Board OF
Estimates.
AS this statement shows and as has
been foreshadowed by the recent an
nual reports of the Controller, the City
has reached and overtaken the point
where further bonds can be issued
within the present per cent bonding
Limitation. and the act now awaiting.
under the power delegated by the new
constitution, sanction by the vote OF
the people, will when so ratified. In
would have been desirable IL the City
could have retained the present per-
centage debt limit, but the forty square
miles OF our city have been dem nan In.
possible. The tax fevtes OF the last
few years. even IL the careful scrutiny
OF your Honorable Body, the Board OF
Estimates, or of unofficial critics, has
failed to point out where they might
have been lessened. have been such as
to make IL only fair that certain per-
mapent improvements, such for ex-
ample, as fire engine houses or police
stations, should be paid for by bond
issues. instead of as heretofore, from
moneys raised by taxation hut II the
per cent limit. which has been such
a significant factor In our credit rat
ing, must be left behind as ground that
can never be recovered. IL Is no reason
why we shall not take with us into
the larger credit range Of larger
city. the former spirit Of prudence and
careful management.
AS - well KNOWN. the price Oh our
securities In the past has been kept at
high water mark by tudicious use OF
the moneys Of the Sinking Fund In
bidding for bonds offered at time
when, by reason either of stringency
In the money market or too abundant
offerings OF tempting investments. buy
ers were not attracted by our low rate
only a small portion OF the bonds to
be placed during the next year or two.
can be absorbed by the Sinking Fund.
To raise the rate OF interest on our
bonds, is something we do not desire
to contemplate. and. Indeed; there
would seem to be no reason. why. with
careful management, all consideration
Of such a thing. should not be avoided.
The market for our bonds. with their
tax exempt feature, Is mainly a local
one. Between six and seven millions,
or two-thirds Of our city debt, IL held held
tinue to pride ourselves on the city's
standing. our own citizens must be pre-
pared to meet the new conditions and
to maintain at least their present pro-
portion OF holdings OF the citys In
creased bond issues. Our weather.
corporations and individuals. who now
hold such large amounts OF our bonds 1
how largely the credit OF our city de-
ponds on the successful iotation OF her
sh per cent bonds and consequently
measure OF their holdings.
The charter amendment, now await
ing submission TO the people, and pro-
ylding that city bonds may. on occa-
sion. be offered generally. in sums OF
small amount. VIII. IL In also to be
hoped. be adopted. so that there may
be this resource. whenever the bond
market IL unfavorable. or as may
otherwise be deemed advisable.
The above brief forecast OF this Tea
ture OF the City's fiscal outlook, can
not but fail to suggest to your Hon
orable Body the necessity and advis-
ability Of making haste slowly with
the increa sed bond limit. To issue
bonds IL never saving: IL merely
amounts to buying by installments and
paying interest beside. To issue low
rafe bonds at par, when the market IL
unfavorabIe. II generally impossible
and always embarrassing The City's
Counting Room should be spared either
dilemma