Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1872-02-10
OLYMPIA. SlYlRDli MORNING, fAb, n, lSl2.
TERRITORIAL WARRANTS AS an IN
VESIMENT.

There appears to be united aud per-
sstcnt effort upon the part Of some Of our
moncycd Shy locks 10 dcpreciatc the value
of Territorial warrants, and that their ct
forts have been attended with success is
apparent from the low rates at which they
have been sold within the past few weeks.
1t is acknowledged that the late officers
having charge Of the Territorial finances
were utterly incompetent for the trust-to
use mild term for the reckless oxtrava.
vance Which characterized their disbursc-
ments and allowanccs-stll that the Ter.
ritory is bankrupt or its financial condi-
ton SO prccarious as to justify the discount
demanded by the few parties having
money to invest, is an erroneous opinion
that could be only obtained through the
grossest misrepresentation of facts and
figures. The rate now offered by the
Bank, VIC understand, is 60 cents on the
dollar, in currency, the kind Of money in
which the Warrant is finally paid. Add
this enormous discount to the rate Of
interest, which all warrants bear, and it
will be seen what margin is left for all
possible contingencies as regards the time
of final payment. Suppose the holder of a
warrant drawn for 81 900 subjects it to the
present "shayc" He will receive 5000 in
the same currency in which the warrant is
drawn. This sum placed at interest at two
per cent. per month, and allowed to ac-
cumulate for FIVE years would net him but
$3.50; while if he retains the warrant, at
the end of the same period it will have in-
creased by the addition of interest Go per
cent. per annum, the rate allowed by law
to 81, 500, or $3.50 more than the sum re-
allied upon the proceeds of the warrant
placed at the very highest rate of interest
cxacted for the use Of money. Suppose,
however, the warrant is paid ia two years,
the probability of which VIC propose to
demonstrate, the two per cent. per month
interest for that period upon 5000 would
amount to S2SS, aggrcgating SSSS, End
the warrant in the same time Sl,200-or
1912 loss in addition to paying the highest
rate Of interest. In other words, if the
warrant is paid in two years, it will net the
holder more than the amount realized from
its sale with interest at the rate of four per
cent. per month added for the whole OF
that period. When it is considered that
the prevailing rate Of interest is but one
and one-half per cent. per month, the
cnormitics of the " shave" cxactcd by our
modern Shylocks is still more apparent.
In support of the opinion that all out
standing warrants at this time will be paid
before the close of 1873, we submit tho
following facts, gathered from a close ex
animation of the Auditors and Treasurer
books. The total amount of debts nov
outstanding against the Territory aggre
gates the sum in round numbers of $40,
600. There is due the Territory from tn,
several counties, and still unpaid, the sun
of $50, $50. Add to this $4,000 now in tn,
Treasury, and the total amount of indebt
edness exceeds the assets only $1,000. TIL,
total valse Of assessable property in 1875
was returned at ss,459,O5e; in 1871 a
1852, 800, and at this ratio of increase i
cannot fall short of sl4,00O,00O for thu
present year. 1t is the opinion of many
with whom We have coversed that this is al
exceedingly low estimate. The ratio O.
Territorial tax was increased by the late
Legislature from three to four mills, which
would give for Territorial revenue, upon
this basis, the sum of $4,000. The ex
penses as estimated by the Auditor for the
current year are $4,000. Add to thi,
the balance due from last year CSC, O5O)
and allow liberal estimate for all th<
usual contingent expenses against the Ter
ritory 10 the form of cost bills, interest, de.
linquent taxes, ETC., say $4,000, and The
amount falls several thousand dollars below
the revenue that it is presumed will be col.
Iected this year alone, and it will be
remembered that in showing the compare.
tive benefits resulting from owners of war.
rants retaining or selling ct the low rates
now offered, our estimates have been based
upon no less period than two years for the
redemption of warrants now outstanding.
These figures, We believe. will let food
ofight upon the popular mind in relation
te tho little game that has been played to
"bear" the market 10 this kind of paper
AS lucrative investment for spare capital
the purchase Of warrants at ninety cents,
as little reflection will indicate. is safe
and profitable. 1t is safe because the