The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-12-18
THE PEOPLE WILL DECIDE
Thew Will Be Asked to Vote on the
Proposition of Issuing
Bonds.
A Special Election Will Be Held
Twenty Days from
Date.
A Financial Policy Needed in Helena
Twelve Per Cent Money Must Give
Way to Five.

Within twenty days from date the people
OF Helena will be called upon to vote upon
the proposition of issuing coupon bonds in
the sum of $4,000 for the alienation of
the city's financial predicament and for the
general good.
This is proposition that compends itself
to the calm consideration of every voter in
Helena. On Tuesday evening at the regu-
meeting of the city council, the mayor in a
message stated the case fully. The time
has come for prompt action and realizing
the Importance of this, Mayor Bradford
called the aldermen in special session last
night to take action in the premises. Those
present were Mayor Bradford, Aldermen
Steele, Lissner Richards, Theme, Spencer,
Garrett, Spencer and Hartwig.
The aldermen with one accord endorsed
the MAYORS plan. The situation has
reached point when q financial policy of
some kind has to be adopted in Helena.
Helena has had no policy of this kind in
the past. The business has been
conducted in what the MAYOR terms an 'un-
lawful manner When the city treasury
funds were exhausted warrants We're and
are being issued tc pay current accounts
and salaries of officials. This has been 60
ing on until to-day the outstanding il1leht-
edness of Helena in warrants amounts i'll
the aggregate to SlSOOOO.
For these warrants the city has to pay in
terest at the rate OF seven per cent. per an
nun and the persons to whom they are Is
sued, to realize upon them can only get from
so to 95 cents on the dollar. Putting them
ho laci nf
it will be seen that the difference against
the city amounts to II per cent. Ban ks
and spectators realize this II per cent. the
merchant and the taxpayer generally being
losers as we'll as the city government.
By issuing five per cent. bonds which will
sell from one to two per cent. premium, on
twenty years time, the benefit to the city at
once becomes apparent and leaves no doubt
of the mayors plan as feasible and com
mendable business proposition. by this
means the city could pay dollar for dollar
for everything it buys and for every public
improvement that Is made, and all this
could be done figure upon at least one per
cent. premium) for four per cent, instead
of II per cent, as is now the rule.
At the present condition Helena is paying
interest at the rate of $4,000 uron every
100000, where, as under the policy pro.
posed, upon the same amount only S4,0OJ
would be paid. This would be a saving of
$1,000. Another feature of the bond
proposition is that the burden of the
now being made. will not have ia
be borne en,ie ely by the taxpayers
now living in Helena. These street i'm
provements will be a benefit to newcomers
for all time and it is looked upon rs only
Just and equitable that they should con-
tribute to the expense. The bond PROPOSE
tion means that the people now living here,
~ nx,S,,, 30 L,.il n
prosperous city for future generations. will
not be asked to bear the burden of taxa
tion, that the payment for the improve
ments will require.
The old timers have made Helena and
under the financial policy now existing thoy
have been required to pay as they Went for
every public benefit. The newcomers have
bond proposition carries, these matters
will be equalized and all who are benefited
will paw their share of the improvements.
Alderman ,Iissner, the chairman of the
committee on taxes and licenses, who has
given this matter his consideration, esti-
mates that to carry on the government of
the city it requires a monthly outlay of
revenue for the present year. including the
receipts from licenses, ETC., will run the
total up to $l75 600. He heartily endorses
the bond scheme as a sensible business
proposition and the only one to relieve the
situation and place Helena again in good
financial standing with the banks, which
will be willing to loan money to tho city.
"Why, the banks will not let US have a
cent said Alderman Lissner. s'Ihey know
that Helena is all right, but as long as they
can realize II per cent, instead of seven per
cent. from our warrants, as they are now
doing, they are not going to stop such n
profitable business. We want money to
make money, and by paying off our warrants
at once We will make money for ourselveS
as we'll as the people with whom we do bus
mess. If 1t had not been for me our war
rants would not be worth over 80 cents on
the dollar to-day; but almost four months
ago went to the banks and assured them
that we would soon have money with which
to call our warrants in. and the result is
that the warrants went up from So to 95 and
s. cents on the dollar
Aldermen Steele, Theme. Spencer and
Richards each spoke in favor of the plan to
call an election for bonds and on motion of
DR.. Steele, seconded by Lissuer and Rich
ards, the city attorney was instructed to
advertise al election according to law. to
submit to the people q proposition to issue
coupon bonds to the amount of $4,000.
Upon the rule that time is money, the
proposition will be placed before the pub
lie at once for general discussion. Il have
talked with many of the best citizens of the
city over the matter" said the mayor, land
have not yet encountered dissenting
opinion" The aldermen will interview their
constituents and get the full sense of the
public. The council will hold another
meeting in few days for further discus.
sion. As to the legality of the proposition
the city charter has been referred to. l,
provides that cities with an assessed yalua
ton exceeding $l,200oO0 may issue bond,
for certain purposes i'll the sum of 2 pc
cent of this valuation. The new constitu
ton. however, provides that cities of tina
value and in excess may issue bonds to tn
amount OF per cent. Aside from existing
bonded Indebtedness this would allow Hell
ena. whose assessed valuation approximate
S0ooO,OOO. to issue bonds to the amount o
$4,000. but the city fathers say that $50,
GOO would be sufficient for present pul
poses.
THE NEW CHARTER.
A Commission Appointed to Prepare On
For Legislative Action.
Alderman Lissner submitted the the fol
lowing resolution last night which wa