Evening star., 1933-07-30
Municipal Finance
Studied by Illinois
.TO,un Officials
Modern Methods Held
Need of City At
Chicago ParIey. a
BY RUTHWELL DUNCAN.
Special Dispatch to The Star.

Special Dispatch to The Star.
CHICAGO, July 29.-Many Of the OBJ
jective ills of the municipal financial
mismanagement were part OF the
scenic setting in which was staged last
week at the University OF Chicago a
conference of mayors, controllers, audi
tors, fiscal agents and experts In the
problem Of public revenue. expenditure
and indebtedness. With its police and
teachers unpaid for six months, and
public improvements halted for lack OF
funds, Chicago furnished horrible ex-
amples to give point to the discussion.
The conference discussed many
phases of the present municipal debt
situation, tax delinquency and the dis
tribution of governmental revenues and
functions. It represented one aspect
Of a movement that has aroused con-
siderable interest in Illinois under the
fostering hand Of the political science
department Of the University of Chi
cago, namely, the modernizing Of the
local government by Smpliflcation. CO.
ordination and the development of
sound business practices. Immensely
valuable research work in that field
has been done by the university experts,
and by public finance experts under a
0ldLS COLlIIllSSlOu. uc ulOVcIucklt
makes headway slowly against political
at stake, and much confusion and con-
flicting mechanism which contributes
to extravagant and corrupt expendi-
ture. But the task Of education is be-
ing carried on with intelligence and
persistence.
The municipal finance conference dis
closed the fact that conditions in IL
linois are little different from those in
many other States. and that general
recognition is growing Of the funda-
mental nature of local government as a
factor in those problems which cause
anxiety for the taxpayer.
One of the vicious practices COM
mon in Illinois, which was emphatically
condemned by the conference, is that
of borrowing on anticipated revenue
Many cities. it was reported, are in
serious straits today because their
short term credit has been exhausted
through chronic and extravagant re-
q means of meeting current obligations.
Banks are loaded with such paper, and
there Is no citizen market for it.
The conference urged that effort
should be made to place municipal gov
eminent on cash basis by synchrOni-
zation Of budget making and tax COL
lection. There was discussion Of the
practicability Of installment tax paying,
or tax paying in advance-a method by
which the citizens, rather than the
banks. would be the creditors of their
government. Financing a municipality
through taxes Is a public ntiiity d.
nances itself through consumer rates
was proposed.
But it was recognized that basically
in Illinois, and in not a few other
States. the trouble lies in systems Of
local government 50 archaic that eco
nomic adjustment to modern needs IS
almost impossible Illinois, for ex-
ample, functions today on a funda-
mental pattern of township government
that is identical with that first estab-
lished in New York in 1901. Economy
by looping expenditures cannot solve
the problem, nor can readjustments of
revenue sources, improvements in tax
collection or other methods addressed
to mere symptoms. Local government
itself must be made efficient in mech
anism and capably manned, the con-
ference agreed.