Arizona weekly enterprise., 1890-08-09
THAT FUNDING BILL.
THE GOOD THE GOVERNORS BILL
 WILL NOT DO.
A Bad Precedent--The Counties at the Mercy of the Insolvent Ones--A
 Dangerous Law.
Phenix Gazette.

The organ says secretary Hammond Is busily engaged in sending out circulars explaining the alteration made by con- gress in the funding laws of Arizona, at the instigation of his "boss." We applaud the industry of the secretary; about all he will have to do to earn the $100 per month, which he proposes to draw, and perhaps divide with the organ, will be to add up half dozen circulars to the diff ferent boards of supervisors, urging them to contribute to the feast fat things Me Ginty proposes to give with their consent to his Kansas City bankers. The Gazette has great respect for Secretary Ham, mond. His ability is far ahead of the average man. To have to hold and exc cute public office he is pronounced suc- cess, and his receiving capacity ill the way of emoluments Is absolutely limit less. But the Gazette fears that the Hon. Secretary will not show the weak side of the bill, and proposes the people shall know just exactly how beneficial this remedial legislation will be, and who are to receive the benefits, the people who pay the taxes or MT. Ginty and his bank CT associates of Kansas city. The territorial law of 1887 is identical with that passed by congress so far as 1t relates to the funding of territorial indebtedness with these exceptions. Under the territorial law the rate of interest is fixed not to ex- ceed six and one half per cent per annum, and the time for final redemption at 9 years. In ten years after the issuance of the bonds, the board of equalization or the auditor is to cause to be levied annually a tax sufficient to pay ten per cent of the principal Of the bonds until all are paid, q forf de10A H. treasury, bonds to that amount are to be called in. The MeGinty bill fixes the rate of interest at five per cent per an- mum, and extends the time for the re- demption of the bonds to 50 years, and no tax can be levied to create sinking fund for the redemption, nor can any of the bonds be called in and cancelled until the 50 years have expired. The bill also takes from the board of supervisors of the several counties the power vested in them by our territorial law to fund their county indebtedness, and vests 1t in the territorial loan commissioners by whom 1t Is to be funded as the territorial debt, the territory assuming the payment of the principal and interest and collecting the same from the counties. Now if the law | passed by congress is in any respect an i'm l provement on that heretofore in force we l fail to perceive it. We are not advised as to the aggregate amount of the floating in 1 debtedness of the counties and munieipali- ties of the territory. Counties muni- cipalities, and school districts are funded under this law-it will, as banker Hen derson of Tucson says, cost the territory, one million dollars; 50 year bonds at 5 per cent, means S250 interest on every dollar of principal, and there is no pro- vision for their payment until after the 1 fifty years have elapsed. With the con- stant accumulation of money ill the moneyed centerS of the nation, seeking investment in absolutely safe securities
 the bonds of Arizona in two decades can
 be placed at par, bearing only three per cent interest. The bonds of Missouri and other states, bearing two and a half per
 cent, have been taken at par; but even
 were this not true, what is the use of pay
 ing interest on money for fifty years, that
 can as well be paid in ten or twenty,
 Again we object to the territory becam
 Ing Ill any way responsible for the pay
 ment of indebtedness created by the coun
 ties or municipalities or school districts
 rot but that we believe all such securi
 ties are good, but it is a bad precedent
 1t makes Maricopa. Pinal, Gila and othel
 counties, whose affairs have been economi
 cally administered, and whose people art
 not heavily taxed, responsible for the ex
 travagance of their less prudent neigh
 bors. It takes from the counties them
 selves the control of their local finance and lodges 1t with territorial commis sion, majority of which are appointe, by the president. The law extends itsel
 to every school district. The bonds ar to be issued by the territory and paid b } the territory; so we have in this famou law an act compelling the territory upol the application of the authorities of an, 7 county, town or school district, to issu
 bonds for the liquidation of their indebt [ edness. to pay the interest and principa r of the same, the interest annually and tn principal at the end of fifty years. Unde
 these conditions the people of Arizona
 if all indebtedness is funded, will b
 fortunate indeed if they get off at a COS
 of one million of dollars. In California
 Sacramento, Placer and Fl Dorado d,
 faulted In their interests, and compron ! ised with their creditors; several towI : did the same. It would be indeed ma c velous If all the counties, towns an T school districts of Arizona should fe $ fifty years come up like little men an pay the interest and principal of the D u0UlS IulO bllG t0TIlGOIIdl bF0dSufy. II Is law is fraud, designed to let some ol bonds, that in five years time wou d bring ten to fifteen per cent per annnl l. It cannot fail to work badly, and the ne 1T legislature should see that 1t is amend, n in the interest of the people, taxpaye and citizens. It is the bungling work ss dishonest or incompetent executive r. the interest of ring of money sharl le and as such should not be allowed aS stand