COST OF GOVERNMENT IN MASS. 223 



measure of the differences between towns and cities. Tiie differences in general 

 debt per capita for cities and for towns over .5000 are as follows: 



There is apparently little relation between per capita valuation and per 

 capita debt. Towns of 5000 or more population show greater variation in per 

 capita debt than do cities, and the group average is only $33 compared with 

 $55 for cities. Only ten towns in this group have more than $60 per capita 

 general debt. There is a close correlation between size of town and per capita 

 debt, and most of the high figures are for towns of more than 10,000 population. 



Debt in towns of less than 5000 population is not a serious problem. Sixty- 

 six towns in this group reported no debt in 1926, and in many other towns debt 

 incurred for public service enterprises is of more importance than general debt. 

 Only a few towns in which assessed valuations are high reported more than $50 

 general debt per pefson. The pay-as-you-go policy adopted by many towns is 

 responsible for low per capita indebtedness. Only four of the 237 towns of this 

 group showed a ratio of general debt to assessed valuation of more than 4 per 

 cent on January 1, 1927. 



Siunmarizing, the total indebtedness of the State and local governments 

 does not appear excessive when considered in connection with the common 

 measures of safety. However, many cities and towns are approaching the 

 danger point if their assessed valuation is a fair measure of ability to pay. 

 Cities and towns vary greatly in per capita indebtedness and in the ratio of 

 debt to assessed valuation. In general the outstanding debt per person is in 

 proportion to the size of the city or town, whUe there is little relation between 

 valuation and debt. Direct taxes per person tend to increase with indebtedness. 

 This is partly due to the legal requirement that a certain amount of the loan be 

 repaid each year, but principally to the fact that those cities and towns finding 

 it necessary to borrow extensively have already attempted to meet their in- 

 creasing expenditures by heavier taxes. 



APPENDIX 



In the following tables, where total expenditures are shown for various 

 functions, payments for both current maintenance and permanent outlays are 

 included unless otherwise stated. 



