The weekly miner. [volume] (Butte, Mont.) 1878-1881, 1881-01-25
H~0UsEsBIl.L he. 5.

The object of this bill is to fix the rate of
interest on territorial and county warrants.
While the bill was under discussion in COM
mittee of the whole the other day, Mr.. Beach,
of Lewis and Clarke, moved that the rate be
fixed at 9 per cent. The motion carried, and
the bin is now before the house for Its final
action. We notice that some objection is
raised against the bill on account OF the low
rate of interest proposed, but we fail to see
the grounds upon which this objection can
rest. Every county in the territory is more or
less in debt. In the aggregate their indebted
ness amounts to $619 900. Much Of this
enormous debt is chargeable to accrued inter-
est upon their warrants. Ten years ago the
rate of interest was Is per cent, which has
since been lowered to II and finally to 10
per cent. During these years each county,
with one or two exceptions, has added to its
Indebtedness. This condition of their affairs
imperatively demands the legislature to af-
ford whatever relief is in its power to extend.
The passage of this bill, we conceive, would
be legislation in the right direction. If
money could not be obtained at that rate of
interest this fact of itself would be a fatal
objection to the bill. But money will seek
investment in securities bearing even a lower
rate of interest. Under the provisions Of the
funding bill now before congress the rate of
interest will not exceed 81 per cent, aud may
be fixed at 8 per cent. on the bonds that are
,a1oeaJ ~ hA sec,nH IL r,Nnnu cor, no
procured in the eastern markets at the above
low rate of interest, it is reasonable to pre-
sumo that a suffice Mt amount will be at hand
to purchase all of our territorial and county
warrants that may be issued bearing 6 per
cent interest. We believe they will find a
ready market at their present value, even at
this comparatively low rate Of interest,".
Money, like every other commodity, is
worth only what it will bring. In the cast 1t
S much cheaper than it is hero. The same
causes that have operated to lower its market
value there are being felt to some extent in
this country. The resumption Of specie pay
ment, the cancellation of one-third of onr
public debt, the fact that the balance of for
eign trade for the last year amounted to over
s250,O00,0 900 in our favor have produced an
era OF general prosperity throughout tie
country that bids fair to continue. Capital
is seeking investment in every channel in
which a fair interest may be assured. Stats
tics prove that railroad enterprises in the ag-
gregate pay no more than about % per cent.
per annum on the capital invested. Still. the
Northern Pacific and Canadian Pacific have
met with ne difficulty in procuring $l0,O0O,-
600 each to forward their enterprises. Cheap
money is building these roads. One of them
will soon be in the heart of Montana. 1t
cannot pass through it without the expanding
Of several million dollars in its construction.
Much of this money will find its way into the
hands of Montana capitalists, who will eager
ly avail themselves of the opportunity to in
vest it in securities bearing 6 per cent. In
view of these facts we are forced to the con-
clusien that the day for high rates Of interest
has passed away in this country. We hope
that House Bill No. 3, as amended by Mr..
Beach, will become a law.