essential than
the power to tax. The present-day city must spend large sums in making
public improvements the cost of which it is necessary to distribute over
a period of years. To limit too narrowly the borrowing power of cities
for these purposes would prevent them from realizing the full benefits
of unhampered self-government. This does not imply that a city should
own and operate all industries of a quasi-public character, but it does
imply that it should have the unquestioned right and the power to do so.
Unless this is the case it is not in a position to secure the most
favorable terms from such private corporations as may be allowed to
occupy this field. Unreasonable restrictions upon the borrowing power of
cities by placing obstacles in the way of municipal ownership of public
utilities tend to deprive the people of the most effective safeguard
against the extortion of private monopolies.

The limitation placed upon the amount of municipal indebtedness has not
had altogether the effect intended. This is mainly due to the fact that
the debt limit fixed in the state constitutions was in many cases so low
that it did not permit cities to make absolutely necessary public
improvements, such as the paving of streets and construction of sewers.
To make these improvements without resorting to credit would require the
owners of the property affected to advance the full amount of their
cost. This would in many instances be extremely inconvenient.
Accordingly, an effort was made to find some method of evading these
restrictions which would be upheld by the courts. This was accomplished
by issuing bonds to be paid out of a special fund which was to be
created by taxes assessed against the property of the district charged
with the cost of the improvements. The courts held that this was merely
a lien upon the property of the district in question, and not a
municipal debt within the meaning of the above-mentioned constitutional
limitations. These decisions by the courts may not appear to be in
harmony with the letter of the constitutional provisions relating to
municipal indebtedness, but they are hardly at variance with their
spirit. The object of these restrictions was not so much to limit the
rights of the property-owning classes as to protect them against the
extravagance of the propertyless voters. To make an exception in favor
of municipal indebtedness incurred in this way and for these purposes
was not calculated to wo