The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-03-01
INHERENT ON TOWN LOANS.

or reform,
INTEREST ON TOWN LOANS.
In deciding the question whether the
town will authorize a town loan OF twenty
thousand or thirty thousand dollars, or any
other sum of money, more or less-i0r II
Is not violent assumption, judging from
the past, that without regard to the folly
or wisdom of the policy, the town will
continue to pay by borrowing~-it will not
be amiss to bear in mind that the notes,
order or bonds issued on account OF such
loan will stand on altogether a different
footing from any issued on former loans.
The prompt payment of the interest there
on will not be subject to the caprices of
tax payers They can vote to raise money
enough to pay the interest, but by refusing
to do go they cannot hinder or prevent its
payment when due. Not that Rutland has
ever neglected or refused to pay punctually
the interest on her bonded indebtedness.
Not that the caprices of tax payers has ever
led them to contemplate any such blow to
her financial and business credit. But
other towns and other tax payers have so
acted. And, moreover, as it would now
require tax of nearly seyenty-five cents
on the dollar to pay our current expenses
and interest, without any attempt to re-
duce Indebtedness, and as il ia evident
that, if the town continues its present e.
ceedinglg acise policy of paying one bond by
issuing another, with a corresponding in
crease of debt, it will not be many years
before a tax of seventy-five cents or more,
OF the dollar will be required to pay inter-
cs, alone, and it is impossible to predict
what course the caprices of future tax
payers may lead them to pursue. The
legislature, judging one town by another
and thinking that what one town has done
another may or will do, has, therefore for
the protection and security of town bond
holders and "to improve the credit of
towns, wisely provided that the interest
shall be paid the day it becomes due,
whether the town provides the funds or
not. No longer will bondholder be re-
quired to resort to the tedious delays OF 8
suit at law to obtain his interest on the
upon their faith and honor for its re-im-
bursement, as well as upon Gil the property
of all the tax payeis-but the money will
come without lawsuits or notes.
At the last session of the Legislature, a
NV was enacted, taking effect November
q, 1874, ''to provide FOR tic payment of
interest on town and city bonds or notes, to
improve the credit of the same, and to lay
tax for the payment of the same This
law directs the treasurer to keep in book,
provided for that purpose, an accurate
registration of the number and amount all
notes and bonds, thereafter issued by any
town or city ia the state, "with interest
coupons attached" with all necessary par
ticuars OF dates and descriptions. This
registration is required in order that the
town or city treasurer may have the neces
sary data on which TO base the subsequent
action made obligatory on him. The Law
then goes on 10 provide, that in case there
shall be any neglect "to make seasonablt
provision for the payment of the interest
on such obligations, 'as the same shall be
come due" 1t shall be the duty of the trea
surer 'to reasonably make out and deliver
to the collector a tax bill on the grand list
of the inhabitants, and Issue his warran
directing the collection and payment o.
said tax to the treasurer within sixty day.
''in amount sufficient to Seasonably ane
promptly pay tie interest due, or the pay
ment of which is to be provided for to
gether with the costs of assessment anC
collection and sit is made the duty" o
the treasurer 'to provide for and promptly
pay such interest without any vote there
for of such town or city" This is as i
should be. 1t does improve the credit o
towns. Ii does enhance the value of bonds
Heretofore and it is now So with all of GU
former Indebtedness, if the payment o
coupons was not provided for, if they wer
not promptly paid, the holder was obliget
to await, with what patience he could, tn,
pleasure Of the voters, or resort to law
suit with the privilege of levying bis exc
, cution on the property Of any individual
, tax payer, who, in turn, could sue tn
town, levy on the property of another ia:
payer, ard so on in never ending success
sion of law suits and largely increasing
debt, all. in the end, to be paid by tn
town out of taxes assessed on all the pro
perry in town. Now and hereafter, Of
new loans, the whole power is placed il
, the hands of the treasurer, and he must Sc
, that lac has funds with which "seasonabl
} and promptly" to pay the interest. Tn
town in authorizing loans, and the select
men in negotiating them. should bear thi
in mind SO that interest may be paid out @
. the regular town tax without compelling
resort t. special tax, temporary losr
. or the summary provisions of this act.
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>. A General Surrender of Cheyennes.
LEAyENwoRTH, Feb. 2S.
The following dispatch has been receil