The Elko independent. [volume] (Elko, Nev.) 1869-1872, 1870-07-27
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Under the s,Atnte or 1865 Boards Of County
county buildings, and to Issue bonds Of such
county for the payment Of the same in az
amount not to exceed SIS. 0eo. To meet these
bonds AID iateres; thereon, special tax is Gu-
thorizsd. not 20 eIeesL ONE half Of one per cent
en- the taxable properly cfthe county. II is then
provided that shOuld there not be q sufficient
amount to hquidate this inSsbsedaess, When
it becones-6a then such deficiency shall be
raid out Of the General Fund Of the county
The County Commissioners acted under
this statute when the present CouTt-H was
constructed At the end Of the fiscal wear
on July 4;h. the last seni-annral interest on
these bonds fell due. On looking into the
treasury for money 70 pay the interest, which
had been aecumulAting AZ the rate Of two per
cent. Per month, the enormous sum of $40
was discovered. applicable to the payment Of
this interest-not enoaeh to pay the interest
fox one mouth. They then looked into the
General Fund. and found nothing al all there.
This left the county in q very awkward posi-
tiopz whereupon the Board made the follow
ing order:
July Sim the case OF the interest on the
money nov due on the Court House bonds
due July !. $50, il was ordered that the
Treasurer be Instructed TO furnish q state
ment of the amount due Col. j. y. Williams
on said bonds, and until there is money in
the treasury il uHs agreed that We pay Col. J.
y. Williams interest on said interest ut the nate
OF ftco per cent per month after maturity.
We have not seen the Treasury statement
OF the amount due, as requested by the Board,
but the Auditors report Of that date gives the
total amount Of the Courthouse bonds and
interest unpaid S23, 100. All of this amount
has been, and still is, drawing interest at the
rate Of two per cent. per month; and, as will
be seen by the above order Of the Board.
the interest dee TO July LIST has been com
pounded and Is also drutring t,co per cent per
month interest - -
Tax payers can from this statement form a
little idea of the desperate condition Of the
County finances.
We do not allude TO this transaction 10 CEN
sure the Board for their order, They had to
do the best they could under the circum-
stances, and probably this arrangement was
the most advantageous that eould be made at
the time. Counties, like individuals, when
they get into a tight place, must make the best
terms the circumstances Will admit.
How long this compound interest is likely
10 grow. it is impossible to say. We under
stand that one of the Board has made arrange
ments for loan Of two or three thousand
dollars to meet some pressing liabilities against
the county, among which is included the in
terest due on the Court-house bonds. The |
balance of the loan is to go to the payment of |
several incidental expenses, to which We may |
allude hereafter. This loan is understood 10 |
bear interest at the rate of one and one-half |
per cent ...-...... .....
In view Of the necessities Of the situation,
we are not disposed to question the legality of |
these operations: bat they afford a startling |
commentary on the management which has |
brough. this county to this deplorable, beg
carly condition in single year. Interest at
two per cent, drawing interest at two per |
cent, is not very encouraging. If compound |
interest win not speedily and surely strike the |
victims bottom dollar, then a method for
reaching it has not yet been discovered. A
county that is forced to borrow money at e1.
orbitant rates to meet lis necessary daily er-
penses while carrying an enormous debt at
compound Interest, is in fair way to financial
ruin. e#a gH