Boston, for water, $8,226,000; for ferries, $669,000; for rapid transit, $3,434,000; total, $12,329,000-18.41 per cent. of gross debt.

Baltimore, for water, $8,627,500; for rapid transit, $1,220,000; total, $9,847,500-24.6 per cent. of gross debt.

Cleveland, for water, $3,950,000; for cemeteries, $150,000; for markets, $160,000; total, $4,260,000-19.6 per cent. of gross debt.

Cincinnati, for water, $6,828,600; for railways, $16,353,000; total, $23,181,600-62.4 per cent. of gross debt.

Providence, for water, $5,647,000-31.4 per cent. of gross

debt.

Grand Rapids, total, $1,225,000-55 per cent. of gross debt.
Duluth, total, $2,606,000-50 per cent, of gross debt.
The debts of these cities compared as follows:

From the above figures, the following statement may be

compiled:

State and Municipal Debt Analyzed.-According to The Financial Chronicle, during the calendar year 1903 the States and Territories of the United States, and their municipalities, issued bonds amounting in the aggregate to $152,281,050.

Of that amount State bonds amounting to $8,974,650, or 5.89 per cent. of the total, were issued.

County bonds reached an aggregate of $16,024,726, or 10.52 per cent. of the total.

School district bonds issued aggregated $9,274,920, or 6.09 per cent. of the total.

Municipal bonds aggregate $118,006,754, or 77.49 per cent. of the total.

Refunding operations account for 8.69 per cent. of the total, leaving 91.30 per cent. as the net addition to the total combined debt.

The above bonds were issued for the following purposes: For water, 14.44 per cent.; streets and bridges, 20.51 per cent.; sewers and drainage, 10.60 per cent.; schools and school buildings, 10.28 per cent.; general buildings, 8.56 per cent.; parks and museums, 5.16 per cent.; electric light and gas, 1.20 per cent.; funding and improvement, 3.87 per cent.; miscellaneous, 16.64 per cent.

All but approximately 7 per cent. of the total issue of these bonds bear interest at the rate of 3 to 5 per cent. Of the total 1903 issue 11.45 per cent. bear interest at the rate of 3 per cent.; 35.92 per cent. of the total issue bear interest at the rate of 3 per cent.; 31.17 per cent. of the total bear interest at the rate of 4 per cent.; 5 and 7 per cent. of the total bear interest at the rate of 4 per cent. ; 8.94 per cent. of the total bear interest at the rate of 5 per cent.: 3.06 per cent. of the total bear interest at a rate higher than 5 per cent.; and 3.59 per cent. of the total pay an unknown or unusual rate of interest.

State, County, and Municipal Debt Limitations.

STATE OF ALABAMA.

Constitutional Limitation.-Article XI. of the Constitution, adopted 1875, contains this limitation of the State debt-making power: After the ratification of this Constitution, no new debt shall be created against or incurred by this State, or its authority, except to repel invasion or suppress insurrection, and then only by a concurrence of two-thirds of the members of each house of the General Assembly, and then vote shall be taken by yeas and nays, and entered on the journals; and any act creating or incurring any new debt against the State, except as herein provided for, shall be absolutely void; Provided, the Governor may be authorized to negotiate temporary loans, never to exceed one hundred thousand dollars, to meet deficiencies in the treasury; and until the sum is paid no new loan shall be negotiated; Provided, further, that this section shall not be so construed as to prevent the issuance of honds in adjustment of existing State indebtedness.'

STATE OF ARKANSAS.

Constitutional Limitation.-The State Constitution (1874) prohibits the loaning of the credit of the State, or of any political division of it, for any

purpose whatever; and prohibits the State from assuming or paying the debts or other liabilities of any county, town, city, or other corporation, unless such debt was created to repel invasion, suppress insurrection, or to provide for the public welfare. It also provides that no county, city, town, or other municipality shall issue interest-bearing evidences of indebtedness, except such bonds as may be authorized by law to provide for and secure the payment of the present existing indebtedness, and that the State shall never issue any interestbearing treasury warrant or scrip.

STATE OF CALIFORNIA.

Constitutional Limitation. It is provided that no county, city, town, board of education, or school district shall incur any indebtedness exceeding in any year the revenue provided for it for such year, without the assent or two-thirds of the qualified voters, and provision must be made for an annual tax sufficient to meet interest as it falls due, and to constitute a sinking fund for the payment of the debt principal within twenty years.

STATE OF COLORADO.

Constitutional Limitation-State Debt.-The Constitution prohibits the creation of any debt "except to provide for casual deficiencies of revenue, erect public buildings for use of the State, suppress insurrection, defend the State, or assist in defending the United States." The debt contracted in any year to meet "casual deficiencies" is limited to $100,000; the public building debt, to $300,000, and then only after having obtained the sanction of a majority of the qualified voters of the State. In 1876, the State assumed $42,000 of territorial debt, and subsequently it was paid off. In 1877, the State began to issue "treasury warrants" and "certificates of indebtedness," and in 1881, "loco weed certificates," under the constitutional provision permitting the creation of debt to meet deficiencies of revenue. There has been a difference of opinion as to whether the amount outstanding has not exceeded the constitutional limit.

Counties.-The Constitution prohibits the creation of debt by any county, except for the purpose of erecting public buildings, making or repairing public roads and bridges; and the amount of such indebtedness created in any year is limited to $3 on the $1,000 of taxable value of property in counties where that value is less than $5,000,000, and to $1.50 on the $1,000 where it exceeds $5,000,000; and the aggregate indebtedness of any county can never, at any time, exceed twice the amount fixed by the above limit, without the sanction of a majority of votes cast at a special election held for the purpose of submitting that question.

Cities and Towns.-The State Constitution prohibits the creation of any debt by any city or town, "except by means of an ordinance, which shall be irrepealable, until the indebtedness therein provided for shall have been discharged, specifying the purpose to which the funds to be raised shall be applied, and providing for the levy of a tax sufficient to pay the annual interest and discharge the principal of such debt within fifteen years, but not less than ten years from the creation of such debt"; but no debt shall be created without the sanction of a majority of votes of qualified electors; and the aggregate debt shall never exceed 3 per cent. of the property in valuation. Debts contracted for supplying water to cities or towns are, however, excepted from the operation of this section of the Constitution.

STATE OF CONNECTICUT.

Constitutional Limitation.-The State Constitution, by an amendment adopted in 1877, prohibits the loaning of the credit of any county, city, town, borough, or other municipality to any railroad corporation, or mak

ing any donation to, or subscribing to, the capital stock of any such corporation; but this prohibition does not affect the validity of any bond or debt incurred under existing laws prior to the adoption of the amendment. The Revised Statutes provide that "when any town shall have made appropriations or incurred debts, or shall hereafter make appropriations or incur debts exceeding $10,000, it may issue bonds, either registered or with coupons attached, or other obligations, payable at such times and at such annual rate of interest, not exceeding 6 per cent., payable annually or semi-annually, as it shall determine.

STATE OF DELAWARE.

Constitutional Limitations.-There are no general provisions regulating the creation of debt. The State, however, is forbidden to borrow money or create debt. Article VIII., Section 3, however, provides for "casual deficiencies, repelling invasions, defense of the State in war, and the payment of existing debts."

No county, city, town, or other municipality is permitted to "lend its credit or appropriate money to, or assume the debt of, or become a shareholder or joint owner in, or with, any private corporation or any person or company whatever.'

The power of municipal debt creation rests with the General Assembly, and the General Assembly considers and passes special acts to provide special requirements.

STATE OF GEORGIA.

Constitutional Limitation.-The State Constitution adopted in December, 1877, prohibits the creation of any bonded indebtedness by or in behalf of the State, except to repel invasion, suppress insurrection, or defend the State in time of war, and limits the amount of floating debt which may be temporarily incurred in case of deficiency in the revenues to $200,000.

Debt Limitation of Cities and Towns.-The State Constitution prohibits the creation of debt by cities in excess of 7 per cent. of the assessed valuation of taxable property, and also requires the levy of a sufficient tax to pay the interest and principal of all bonds that are issued.

STATE OF IDAHO.

Constitutional Limitation.-The Constitution limits the total debt, except in case of war, invasion, or insurrection, to 1 per cent. of assessed valuation, unless authorized by special law for some single specified work, such law (which must be submitted to the people and receive a majority of all the votes cast) to provide means other than loans for meeting annual interest and retiring principal within twenty years, and prohibits the State loaning its credit to, or becoming a stockholder in, any corporation or association.

"No county, city, town, township, board of education, or school district, or other subdivision of the State, shall incur any indebtedness or liability" in any year exceeding the income provided for it in such year, without the assent of two-thirds of the qualified electors, and unless a tax is provided for sufficient to meet principal and interest as they become due.

STATE OF ILLINOIS.

Constitutional Limitation.-Counties are prohibited by law from issuing bonds to an amount, in the aggregate, exceeding 5 per cent. of the taxable property therein, as shown by the last previous assessment for State and county

taxes.

County authorities cannot assess taxes, the aggregate of which shall exceed 75 cents on $100 valuation, unless authorized by a vote of the people.

The Constitution prohibits any city, township, school district, or other municipal corporation from being indebted to an amount, in the aggregate, exceeding 5 per cent. of the taxable property therein, as shown by the last previous assessment for State and county taxes.

STATE OF INDIANA.

Constitutional Limitation.-The Constitution prohibits the creation of any debt by the State, except "to meet casual deficits in the revenue, to pay interest on the State debt, to repel invasion, suppress insurrection, or, if hostilities be threatened, provide for the public defense. It also prohibits the assumption by the State of the debts of any municipality or corporation.

STATE OF IOWA.

Constitutional Limitations.-Article VII. Section 1. [Limitation of State Indebtedness.] The credit of the State shall not, in any manner, be given or loaned to, or in aid of, any individual, association or corporation; and the State shall never assume, or become responsible for the debts or liabilities of any individual, association or corporation, unless incurred in time of war for the benefit of the State.

Section 2. [Limitation of State Indebtedness.] The State may contract debts to supply casual deficits or failures in revenues, or to meet expenses otherwise provided for; but the aggregate amount of such debts must never exceed $250,000.

Section 4. [For what other purposes State may contract debt.] In addition to the above limited power to contract debts, the State may contract debts to repel invasion, suppress insurrection, or defend the State in war; but the money shall be applied for the purpose for which it was raised, or to repay such debts. Section 5. [Other debts to be authorized.] Except the debts herein before specified in this article, no debt shall be hereafter contracted by or on behalf of this State, unless such debt shall be authorized by some law for some single work or object, to be distinctly specified therein; and such law shall impose and provide for the collection of a direct annual tax sufficient to pay the interest on such debt as it falls due, and also to pay and discharge the principal of such debt within twenty years from the time of contracting thereof; but no such law shall take effect until, at a general election, it shall have been submitted to the people, and have received a majority of all the votes cast for and against it at such election.

Article VIII. Section 3. [State not to be a stockholder.] The State shall not become a stockholder in any corporation, nor shall it assume or pay the debt or liability of any corporation, unless incurred in time of war for the benefit of the State.

The limit of municipal indebtedness is fixed absolutely by the Constitution as follows:

Article VIII. Section 4. [Corporation not to be a stockholder.] No political or municipal corporation shall become a stockholder in any banking corporation, directly or indirectly.

Article XI. Section 3. [To what amount county may become indebted.] No county or other political or municipal corporation shall be allowed to become indebted, in any manner or for any purpose, to an amount in the aggregate exceeding 5 per cent. on the value of the taxable property within such county or corporation.

Subsequently (1900) a lower limit of indebtedness was fixed by the Legislature, which adopted the following bill:

Section 1. "That Section 1306 of the Code be, and is hereby, repealed, and the following enacted in lieu thereof: