The Portland daily press., 1862-10-23
The City Loan The Facts.

the Mayor, has authorized loan Of $4,000,
bearing 9 per cent. interest Is not the Mayor
aware that many cities in New England are
Issuing their bonds bearing per cent. inter-
est, and dispose of them at premium? Is he
not aware that a large sum OF money is lying
idle, waiting for Il sale investment, and that in
dications are that interest will not exceed A
per cent? Many believe that il will fall to 3
per cent. Is he not aware that the credit of
the city would stand higher by issuing its
bonds at per cent than it would if issued at
per cent? Let the City Council meet and
reconsider their vote and issue their bonds for
this loan at not exceeding per cent, and for
them they should obtain premium.-l Adv.
1t has been "a matter of surprise to many
that the city of Portland should continue to
haze money at per cent. interest, while the
city of Boston obtains premium OF per
cent. for bonds bearing per cent Interest,
and the cities of Providence, New Haven and
even Lynn, obtain loans at the same rate, al
though at a lesser premium.
As loan of $4,000 is asked for by the city,
to complete the most magnificent school house
ever erected in New England, it is at least de-
srable that the tax upon our citizens, should
be rendered at the present time rs light as
possible.
1t is known by every one familiar with
finance, that interest has been declining for
considerable period Of time, and that there is
every probability that it will 90 to 4 per cent
per annum. Can it be possible that other in
terest are at variance with those of the city,
that it should escape the lynx eye of a bank
PRESIDENT Argus.
The order of the City Council to which ref
erence is had in the foregoing extracts, was Of
fered, and simply referred to the Committee
on Finance, at the meeting OF the Boards on
Monday evening, and is reported in the Adver-
tiser, in the proceedings of the Common Coun-
Gil, as follows:
That the City Treasurer, under direction OF
the Committee on Finance, be authorized to
hire forty thousand dollars for a term not eX-
cceding ten years, and interest not TO erceed
sic per cent, to be appropriated to the payment
of expenditures in building the school house
on Cumberland street.
The Argus reports the action of the Board
of Aldermen in these words:
Order authorizing the City Treasurer to hire
$4,000 on ten years, the same to be appro-
priated to payments for the new school house
on Cumberland Street, was referred TO the
Committee on Finance.
The reader can Judge as well as we can, of
the motires of the Advertiser and Argus
which now are practically lone and indivisi-
Bile" in their raids upon the Administration,
upon the City Government, and upon the in
terests Of the city generay-which prompted
them, in the face of their own records, to mis-
represent and talsify the action of the city.
One of them says in express terms, that the
City Council has authorized a loan of $4,000
at sir per cent, while the other lugubriously
declares it 'has been a matter of surprise to
many that the city should continue to have
lhire money at sir per cent" when they both
unwittingly furnish the evidence in their own
columns,-though in previous issue-that
the one statement is utterly false, and that the
other implies an utter falsehood; that all that
has been done is to refer an order authorizing
loan at not exceeding sir per cent, to the
Finance Committee.
1t is well understood that the Advertiser is in
an interest totally hostile to the city of Port
land; that its editor cares nothing for the iu-
terests Of the schools or anything else here,
except by demagoguery or any other means, to
get city Government after his own heart,
that he may drive sharp bargain to furnish
the city with water from Sebago Lake and he
would doubtless find no fault with Water
Loan, to any amount or at any rate ofinterest.
no mater how extravagant, if he could only
make the water flow through his pipes, so
when the whim came over him, he could drive
the city into any pet measure ofhis. or cut off
its scateri We hardly think he will carry his
scheme into effect, at least not till some better
evidence is afforded of the wisdom of commit
ting such important interests to hands that
have heretofore proved exceedingly uncer-
tain.
The Argus makes a fling at "the most mag
niicent School House ever erected in New
England" That paper takes no pride in such
institutions" and we are assured the only op-
position that has been manifested towards the
erection of new School Houses, has come from
distinguished friends of the Argus, and men,
bers Of its narrow-gauge party. We think it
will find it an uphill business to bunt its en-
gines against the pride of New England-our
common schools, or the houses necessary to
accommodate them and the editor of the Ad-
vertiser. though in the classic language of
Train, zone of those strong fish that went
against the tide and headed up the stream"
will find it difficult to make headway in the
same direction.
The Argus, in its own peculiar style, sneer-
ingly refers to ''the lynx eye of bank presi-
dent" in this matter. Mayor Thomas and Mr..
Spring of the Finance Committee, are both
bank presidents, and the fling is doubtless in
tended for one or both of them. They need,
as financiers, no defence from us, nor do we
think confidence will be diminished in either
OF the gentlemen by the filings referred to.
A word for the facts. When the order was
introduced in the Board of Aldermen, the
Mayor stated explicitly fact well known to
the reporters of the city papers-that he was
satisfied the loan could be negotiated for not
exceeding five per cent. He did suggest, sub
stantialy, the propriety of referring the matter
to the Finance Committee, for them to con-
slider which would he best, to make five per
cent. bonds, and sell them at or about par, or
to make six per cent. bonds and sell them for
twelve or fifteen per cent. premium. This pas
the object Of the reference.
The city has not hired dollar for about four
months, and then its bonds sold for 5 per cent.
premium. One fact more the Boston five per
cent bonds, which the Argus says obtain a
premium of eight per cent, pay interest in
gold, and it is the unusual premium on this
article which serves to give those bonds an
apparanf adrantara oya. e;,.;I.. la..l