Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1889-02-14

until Oct LIST. 1889. because no man eoult
foresee what the condition Of the money
market ght be. Two years have gone by
a1i we ind the debt not refunded. N,~
suhs sltiAl the sare bill has been reported
by the finance committee, except that the
cast iron lause requiring the bonds to be
dated the FIRST of next October. is omitted,
that being lef, To the discretion of the Gov
eruor; but they are not to begin to bear
interest until June ist The plan now is
that the bonds falling due in June shall be
refunded with the new bonds, and that por
ton Of the deb, that falls due in October 10
to be met With the sinking fund. So thst
the process o. refanding is somewhat re
verssd from VIA, it was two yesrs Ago. He
did not consider h'm.elf capable Of advsnc-
ing any opinion that the bill was not right,
but wished merely TO suggest 3
doubt Of the proprie,y Of the method
OF distributing the payments. The bonds
are TO be issued in ooe thousand dollar blocks
and TO bear interest At three per cent Be-
ginning with line On page the bonds 50
issued shall be payable to the amount of
soO, 600 per xnnum for l2 years. beginning
with the year 1890; $50 600 per annum,. for
10 years beginning with 1902, $4,000 per
Annam, for 10 years. beginning with the
year 1912, and 500. 600 per annu n. for
years, beginning with the year 1929" So
that the plan of the committee its 10 issue
bonds running from one year up to forty.
lie had calculated the burden as il would
tall upon the State, year by year. beginning
In 1870 and carrying il up To 1929, and he
suggested the doubt whether it WAS equitable
to the preseIt generation. In 1880 the
principal AMI interest will be $l3t 600 and
the suns would run down until in 1901 it
would fall TO SiI1 500. Then beginning on the
next division of payment in 1902 il would
run up to slS6,0,0 dropping in 1909 to
sl2l 800. Then for the next decade. in
1910 the sun would be Sll92D. running
down To 1921 and slol $40. Then in the last
. ght years, in 1928 the payment would be |
si0s, 900 and in 1929, the last payment s92.-
100.
The first doubt that would suggest itself to
ones mind was this if the payment of the |
debt was 10 be extended over a periol of |
forty years, why should the heavier part of
the burden fall upon the State now? In other
words, why should not the probable
increase of the wealth of the
State carry the in .rease of
the burdeni If the plan Of the committee
was to give relief by setting these payments
over 40 years. why not carry out the lea TO
its full completion? and why not make the
payments less for the first I2 years and
greater for the last 20? For certainly the
bonds would not sell for less; because the
earlier the bonds fall due--the greater paw
ments made in the first IL years, the less the
premium on the bonds falling due in rose ~
years. Changing the scale of payments
from the first IL years and carrying it to the
latter part of the 40 years would be not only
a present advantage to the taxpayers but
also be for the int rest of the Treasury of
OF the State by increasing the probable pre-
MUM 10 be received in the ale of the bonds
To put this by way of averages, the average
burden for the first IL year. under the com
mittees' bill would be Sl25,1 $50; for the
next 10 years, $l26 $50. Wnen 22 years
had expired the State wouii be far more
we ilthy than now. Then for the next 10
years when the State is far ahler to carry the
burdens than for the first 22 years. ii be
comes but Sll2.474, and for the last
years when are still richer
the sum is Sl02 l50. Under the 40
years. pl in in the bill the total amount OF
Of principal and interest would be 81 7i6,
800 The amount of interest paid ou,
would be 81 .9l6 800. He ha been advised by
eminent banking gentlemen of this
city who have no desire to bid for the
loan, but only look at it from a
were distributed over a system Of payments
from one to 3, years it would not
make an appreciable difference in the pre-
MUM to be received from the sale of the
bonds H. had made table for thirty
years plan, By way of a suggestion, and start
ing with 100000, payable TOR the first ten
years, S90,0O0 for the next ten years and
Sl3O,OoO for the last ten years, the burden
would be as follows: