Perth Amboy evening news., 1920-02-28
The County Debt Limit.
Newark Evening News.

t4NVNoAh fNiA'H W
At the present debt limit of two
per cent. Of the total average assess
ments upon land and improvements,
the counties Of this state together
possess unused borrowing power
amounting to s17,2&7. 900. 1t Is now
proposed in House bill 146, of which
Assemblyman David Young of Morris
is sponsor. to increase the legal limit
to fou per cent.
This would add $53,377, 900 to, or
just double, the debt mourning power
of the counties. according to a state
ment on the subject matter of this
bill issued by the Department of Mu-
nicipal Accounts. The ratables of
each county of course govern the debt
at a glance just what a wide-open re-
gime of money spending and county
debt building could-and possibly
wodld-follow the removal Of the
present conservative, but safe, re-
striction.
THE Young bill is the product Of a
movement which the boards of free
holders of the several counties orig
mated. The demand for the expan-
sion of the debt limit m only
from them, with road contractors and
material men lowering In the back
ground ready to assist in the prospec-
tive carnival CT free spending. No
public sentiment or it can be detect.
ed. Only four counties-Bergen.
Cape May, Middlesex and Morris
show a net debt of more than two per
cent, and each Of these is operating
under a provision of the Pierson bond
act which permits them to increase
their debt by one per cent. of the val
uations. Two other counties. Salem
and Burlington. are close to two per
cent. but in the remaining counties,
Essex and Hudson included. the mar
gin of unused borrowing power that
now exists Is enough to allow spend
ing of large sums-upward or ST.
600. 900 in some instances-on tho
basis of the average ratables. And
these do not include the increased
assessments of this year or the new
power that will come with the matur-
ing of series bonds and accruements
to the sinking funds.
The reua ty of a reduced or ex-
hausted debt margin in an increased
tax rate and hlgner taxes. In the
counties, as we'll as in the cities and
smaller MUNICIPALITIES. the trend to-
ward unprecedentedly high taxes Is
SO great tnat the people are crying
out for relief. But here we find the
boards Of freeholders replying to ap-
peals for retrenchment by scheming
to secure additional power to increase
the debt. 1t might strike the taxpayer
that when public expenditures. of q
nature requiring bonds issues. especi-
ally in times like these, approach the
point beyond which the officials may
not go, it Is a signal. not for remov-
ing the legal obstacle to debt build
ing. but to remove the officials and
stop spending.
The Young bill would add more
than 50, 900. 900 to the present lei In
curing power of Essex and Hudson
counties based on the average of the
assessments of the last three years.
They do not need it. Without 1t they
will have their unused power,
amounting in each county to close to
$4,000. 900, increased this e In
Essex the new ratables on real estate
amount to about $4,000. 900, The
other counties will benefit proportion
ately as their taxing boards increase
assessments. Most of the counties are
benehting by the states program in
road Improvement, which Is outside
of county indebtedness.
In many localities, assessments are
-"' -'Nl'~'- in"Senuate far below
true value ven when true value is
deSpite all eff
forts made to elevate them upon an
auet uale ard just basis. In respect
to this a deep feeling exists that IL
the counties should all make an intel
ligent effort fairly to equalize the tax
assessments. no reaso would remain
for an increased debt limit.