Quoting an article originally printed by the Waxahachie News and reprinted in the Dallas Morning News, August 21, 1934, page 11, entitled Civic Honesty, it reported that a solution to Cisco's Municipal Debt had been agreed upon. This debt problem had been in litigation for four years.
City officials announced they had reached an agreement with New York bondholders to fund the city's bonded indebtedness on a basis of approximately 25 cents on the dollar. The agreement was under a new Federal law which enables debt-ridden municipalities to revise their indebtedness with the acquiescence of a certain proportion of the creditors.
The city's total indebtedness before the agreement was reached was about $850,000. (These figures are not the same as reported in earlier reports which stated that Cisco had an indebtedness of $ 6,000,000) The article continued, “One reason, we believe, why the individual population is in such a ghastly mess, financially, is because of civic mismanagement. Cities, schools, churches and institutions have spent money like water—and some of them flatly repudiated their bonds. Many debtors today would like to follow Cisco's example and get a settlement for cents on the dollars.”
