ADDRESS.

GENTLEMEN OF THE CITY COUNCIL:

depression in business.

We assume our duties here under the stress of Continued unfavorable circumstances. The depression in trade and industry continues unabated. The hand of labor lacks employment, or finds itself inadequately rewarded. Incomes from real and personal property are reduced or suspended, and commerce, foreign and domestic, languishes in a stagnant market with small and precarious profits. Of course, the people thus crippled in their resources find even the most necessary taxation a burden, and anything beyond that would be intolerable. The question for us, therefore, is not what expenditures and enterprises would be desirable, or ornamental, or even useful for the future, but what are indispensable for health, for order, for security, and for the accommodation of such traffic as there is, for maintaining the public property in repair, and keeping the machinery of our vital institutions of education, charity and

reform in vigorous operation. I will state the

present financial condition of the city.

It appears that the increase of the gross debt, during the municipal year, has amounted to $458,478.43, and that the increase of means on hand, for paying off the same, has amounted to $764,058.02,- showing an actual reduction of indebtedness amounting to $305,579.59. The debt of the city Dec. 31, 1875, may be stated briefly as follows:

1

The average rate of interest paid by the city on all its loans is 5% per centum. The average rate of interest on gold debt of all classes is

92

41% per centum. The average interest on all

999

currency loans is 50% per centum.

A detailed statement of the city debt, prepared by the Auditor of Accounts, is appended.

According to the best estimate that can be city debt. made now, the net debt will be less at the close of the current financial year, April 30, 1876, than it was April 30, 1875, although we shall have borrowed money for public improvements within the year to the amount of two and a half millions. This favorable result is owing to the growth of the sinking fund from the taxation required by law, and also from unexpended appropriations, the balance of which goes to swell that fund.

of expen

From a diligent inquiry at the several depart- Reduction ments, I am led to believe that the levy of this ditures. year may be reduced a million from last year. It does not appear that any new public buildings will be required this year, except, possibly, a single Primary School-house; and I am confident that no propositions for large street improvements, and not many for small ones, unless paid for by abutters, will find favor this year, either with the City Council or the people at large. Active committees of the City Council, mindful of the public uneasiness under the burdens of taxation in these

8

MAYOR'S ADDRESS.

hard times, will doubtless discover other methods of retrenchment, small separately, but considerable in the aggregate. They will see to it that all materials and commodities required for the city's use be purchased at the lowest market price, with such discount as is always obtainable when the consumption is large and constant, and the payment sure.

Market price for labor.

Salaries of

city officers.

Labor also, like other commodities, has a market price at any given time. That price should be paid and no more. The city is only one of many employers, and should not assume to fix the price, but only follow it. Anything paid for labor above the market price is a disguised gratuity, and we are not warranted in dispensing gratuities, except through the established channels, and according to the recognized principles which govern the city's charities. City business should be transacted upon strict business principles. Any departure from this rule opens the way to favoritism and corruption, and would always incur the suspicion of it.

It may be thought by some, that, among the minor methods of retrenchment, the first step

should be a reduction of the salaries of the city officials. If the City Council should see fit to adopt such a measure, I, personally, should waive legal rights and submit to it cheerfully. At the same time I am bound to express my deliberate conviction that it would be injurious to the best interests of the city. We have in the executive departments many men of the highest ability and character, as well as of large experience in their special duties, whose services are invaluable, and the amount of whose salaries is an almost inappreciable item, as compared with the sums they save by their efficiency and fidelity. A reduction of compensation would inevitably lead to the employment of an inferior grade of character and talent, and we should lose thousands in saving hundreds. From a financial point of view, the city cannot afford to lose the services of her best men, least of all in hard times like these when economy is indispensable.

for current

The principle has been acted on, during the Taxation last two years, contrary to previous practice, of expenses. paying as we go for all ordinary constructions, such as new school-houses, engine-houses, police stations, street widenings, etc. An exception was