Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1885-05-09
The LOAN ORDINANCE,
As II Passed the Second Branch,
Last Night.
interesting Discussion Over the Various
Sections---The Rate Of Interest
Productive of the Most
Talk.

The proposed loan ordinance came up In
the specisi session of the Second Branch OF
Council last evening, and after long dis
cussion of the various sections. under sus'
pension of the rules, it was passed to Its
third reading, and now lays upon the table,
the understanding being that when 1t comes
mn for passage on Tuesday night amend
ments may be proposed and discussed The
leading features of the discussion will be
found below:
When the document had been read first
time, Mr.. Stanley moved that the rules be
suspended and the ordinance read a second
time.
Mr.. Hearne was willing to 60 ahead, but
he wanted it understood that, if any mem.
Der should, at the next regular meeting, de-
sire to offer an amendment, he should have
leave to do so. He offered an amendment
TO that effect, but after long discussion the
amendment was withdrawn and the origl'
nal motion of Mr.. Stanley was adopted.
The blank date for the delivery of the
bonds was then filed with July l.
When the blank for the
RATE OF INTEREST
came to be filed, Mr. Harrel moved to
insert per cent, Mr.. Stanley Al per cent,
and Mr.. Peterson per cent. The question
was taken upon the highest rate first, and
Mr.. Peterson took the floor. He said he
hoped the mistake of putting the rate Of in
teIest too low would not be made.
Tie city had not first class
reputation abroad; she had defaulted
On her interest, she had been rated
as Every bad" in Bradstreets, and he was
convinced that if the bonds were to be sold
hey must be sold to our own people.
Mr. Harrell was surprised at hearing the
gentleman on his left talking about the un,
savory reputation of the city abroad; every
foot of ground within the corporate limits
could be held for the redemption OF the bonds
and all the courts had to do was to make a
levy to pay our bonded indebtedness. he
did not know whether foreigners-Russians
for ipstance-wanted any Of our bonds; but
anyone who had
THREE IDEAS ABOVE BILLY GOAT
would jump at city bond at 1 per cent. In
terest.
Mr.. Hearne had been edited by the talk
he had heard, and especially by the remarks
of the gentleman from the Fourth ward.
He had also listened with some interest to
the talk about the AZ per cent bonds selling
at 10 above par. He had, some days ago,
been credibly informed that the Al per cent,
bends were selling at 8 above par. He had
been surprised at that, and he had gone to
the Exchange Bank to get at the facts,
because the interest was paid there
and they knew where the bonds
were. He found that not over $4,000 OF
those bonds had ever been sold at all, and
no such premiums had ever been paid. he
referred TO the y per cent. loan, and said it
had taken six months to float it. 1t was
true the loan Of 1881, at per cent, had
been foated; but now money was tighter
than for long time 1t was the unsni-
nous cry Of our bankers and merchants
that no money was to be had. 1t was only
the other day that prominent banker
had told him that he would have to go to
New York to borrow $4,000 to help him
out in his business. Another thing. 1t was
generally supposed that these loans were
TAKEN UP IN SMALL LOTS
by great number of people. 1t was not
50. For the loan of 1875, the Capital loan,
I! per cent, 100000, there were bat ten
bidders; for the loan of 1876, per cent,
Slll 900, there were but seven bidders; for
the loan Of 1881, per cent, $l54,OOO, nine
bidders.
Mr.. Hildreth said he did not consider 5
,er cent much of an inducement for capital
lists, when, every day, commercial paper went
at 7, I! and 8 per cent.
Mr.. Peterson said there would undoubt
fdly be great difficulty in floating these
tends. The insurance companies had been
heavy losers lately, and they could not take
hem; the merchants could not take them,
for they had enough to do to look ont for
themselves; the banks did not want them,
Tor ouch Of them as had money could do
better with it.
Mr. Stanley thought it strange the banks
had no money. About three months ago he
had had occasion to ask several banks what
interest they would pay on deposits. One
bank had offered per cent if the money
was left for a year, and others would pay
nothing. That was conclusive to him that
banks had all the money they wanted.
Mr.. Harrell could not understand how
The credit Of the city could be bad when
every foot Of ground in the city was behind
The bonds.
Mr.. Sweeney said that while it was true
that morey was scarce in the banks, it was
only
TEMPORARY STRINGEYCY,
ard in month there would be q surplus
sgain, going on to explain why he thought
so. In regard to the remarks by Mr. Harrell
about the financial condition Of the city, he
contended that it Was better than four years
ago; the debt was much less; we had been
paying too fast 1t was fact that the city
had defaulted three times since last fall on
her interest, but it was all paid now, thanks
TO the bank cashiers of the city. The city
nevertheless, had an unsavory reputation
abroad, and he thought the bonds would
Rave to be sold at home. He would like to
try 4 per cent. loan, but he was afraid of
the risk Of failure.
Mr.. Sbanly thought it would be money
saved to run the risk Of . trial at 4! per
cent.
Mr.. Tracy ssid he had talked TO three
bank cashier. Two of them had declined
to touch FIVE per cent bond, and the third
was not sure whether he would or not.
Mr. Stanley was not sure that bank
cashier was the bets person to goit 1t was
to their interest, although the gentlemen
talked to in this instance may have been
honest to get the rate
As HIGH AS POSSIBLE
he referred to the instance given by Mr..
Sweeney that a member OF the First Branch,
on an occasion, had declared that y per