Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1885-04-18

COUNTY INDEBTEDNESS FUNDED
The Board of County Commissioners,
under an act Of the legislature approved
March 8, 1879, allowing counties and
other corporations to compromise and
refund Indebtedness proceeded last
Wednesday to pass a resolution to re-
fund the indebtedness of this county.
ar. A. A. Austin, representing W. B.
Clark, Esq, Of Junction City, was pres
ent and surrendered up a total Of
$4,000 in county warrants taking
County bonds in lieu thereof,
81, 900 of which viii mature in
1891, 81, 900 in 1892, s., 600 in 1898,
81, 900 In 1894, 81, 600 in 1895, and S.
600 in 1896. These bonds draw six
per cent interest, the interest payable
semi-annually. 1t will be seen that the
bonds are not to run over eleven years,
that the payment will commence upon
them in six years, and that they VIII
then be paid off as fast as consistent, at
the rate of 50 1000 per year. The cOun-
ty warrants are all drawing seven per
cent, while the bonds draw only six per
cent, saving one per cent per annum to
the county. This saving, in the total
time the bends have to run, amounts to
Sl,18O.
Besides this, reducing the warrant
Indebtedness $13, 900, especially as the
warrants surrendered for bonds were
generally the older warrants, it makes
an earlier date of payment for the bal
ance of the outstanding warrants, and
consequently gives them a firmer price
in the market. For some time past
county warrants have been selling for
IS cents on the dollar On Wednesday
and Thursday warrants were sold read
lily for 80 cents on the dollar. This in
crease alone will bring the price Of sup
plies necessary for the county down
cOrrespOndingly chea per thus, when
warrants are worth 50 cen is on the dol
lar, the county has to pay Is per cent
premium on every dollars worth Of
supplies purchased When warrants
are worth 80 cents on the dollar, the
county pays 10 per cent premium. For
goods are based upon cash prices, and
as the county can pay only III warrants.
the price of warrants governs the price
of supplies. This item alone is a big
saving to the county. But some may
say that unless all the outstanding in
debtedness is funded, the price of war
rants will not be changed. This is not
good logic. The nearer the warrant is
are to redemption, the frmer win be the
price. Thus, if warrants issued to-day.
with $50, OOOsworth of warrants to be
paid in advance of them, will be paya
bic in four years, by reducing the $780,
600 One-fOurth, those warrants issued
to-day will be payable il one-fourth less
time, or in three years, and should be
worth just that much more in proportion,
1t is quite probable that parties hold
ing the bulk of the balance of the out
standing warrants may also conclude in
the near future to surrender their scrip
for bonds. Should they do this our
warrants will be brought up to par val
ne. Then, when juryman or witness
receives a certificate of his attendance,
he will not be compelled to sell it for a
mere song, but can 60 to the county
treasurer and get his pay, dollar for dol
lar. The funding is a good business
! stroke, and the commissioners have
shown good sound sense in the action
which they have taken.