The Republican journal., 1881-12-01
Refundlng

The article from the R0ckland Free
Press, reprinted below, indicates some OF
the obstacles in the way of refunding at
the present time, and which W ere tj,resren
10y those who endeavored months ago to
! inaugurate movement for retunding the
bonded indebtedness of this city The OBJ
position developed here. as stated at the
time, was calculated to delay, if not de-
feat refunding; and apparently it has
done both In Rockland the movement
was similarly opposed and thereby delay
ed, though not defeated. But the time
lost has been a serious drawback, the
present increased demand for money in
the business centres, which encourages
capitalists to hope for permanently higher
rates, rendering it difficult to dispose Of
the four per cents. In this connection
may be recalled the words of "Fuir Play,'
who said in a communication published
in the Journal of Sept. LIST; Meanwhile
the summer is ended and the time for
borrowing money at a low rate Of inter
est has apparently passed. Money is now
in demand and the borrowing rate at the
banks has nearly doubled" This is pre-
clsely the difficulty Rockland has now to
deal with, as the Free Press shows in the
following article
Considerable anxiety exists to the ultimate
success Of the refunding process undertaken by
the City Up to certain stage the progress met
all that could have reasonably been expected
But lattery the advance has been slight and the
future appears uncertain The most serious diff
Guilty encountered is not that which was most
feared, reluctance to surrender the SIX per cent
bonds, but rather of realizing rapidly enough on
the new four per cents In round numbers S}l7 =
600 in SIX per cents. have been redeemed, while
only about 800 900 in tours converted the bal
ance for purchasing the SKIES being provided for
by short time call loans The reason ascrbed
for the difficulty of dlspOslng of the four per cents
is the increased demand for money in the business
centers. which encourages capitalists to hope for
permanently higher rates This is undoubtedly the
true cause. The best Informed tiuaucierS among
US however, do not believe the advance IN rates
Is to be permanent for some time to come but
expect they will range from 3! per cent. upwards
according to the deSlrahleneSS of the investment
But be that as it may, the fact remains that for
the present the refunding of our city loan is near
ly suspended, and that more than ordinary eff
fort will be required to complete the good work
We do not learn that there is any distrust of the
loan Large amounts Of it nave bean taken by our
own banks and by citizens, and question is
raised At four per cent beng a thirty years loan
it is desirable for long and safe investment for
trust funds or surplus capital The bonds have
thus far been sold at par while United States four
per cents are at premium Of lotto Il cents whlch
is not better than 81 at par The suggestion was
early made that a sl stematlc effort should be put
forth among our own people to place large DOT
ton Of the new loan It might now be done with
ad vantage Some of the most thrifty and cautious
have taken considerable SIMS, seeing no better
place for their money Ii there are Others having
spare funds in any sum, from fifty dollars to thou
sands, they will douby serve their own interest
by purchasing these home securities. for they
will not only make safe investment but aid in
reducing the oLerous burden of annual taxation
Furthermore, general investment by our own
people in their own loan, will add to its safety and
give 1t character abroad.
1t will not answer TO allow the present halt to
become permanent or prolonged one, while any
recourse remains by which such result may be
averted Most emphancally time is money" in
this matter, and while the days pass interest
grows If our city authorities having the matter
in charge are not dong their utmost to press the
new loan, they are failing in duty. They all
doubtless ready and willing to do what they deem
necessary. Possibly of them feel satisfied
with the measure OF success attained and are rest
ing compacently in the present circumstances ;
but if So they need aIaking to new activity and a
sense Of the extraordinary effort which the occa
sion requires The work to be done calls for agents
fitted By capacity and experience They will have
to devote time to it, and, of course. such ser
vices must be reasonably paid That is to be ex-
pected Finally, we believe there is prevalent
feeling Of deep anxiety existing for the success Of
the loan-we might say apprehenson-and that
the authorities will be sustained and best meet
public appreciation by any ordinary measures
which shall accomplish the end What if they do
cost something Drifting as we are will cost vast
ly more.