Arizona weekly enterprise., 1890-08-16
An Executive BIunder.
Corr. Prescott Courier.

The funding bill passed by the Terri torial Legislative Assembly of 1887 was drawn by our fellow townsman, Hon. E. W. Wells, one of the few lawyers of Ari- zona who combines good legal and finan- cial ability. The law as 1t was gave all the power necessary to the Territory and the counties to fund this floating indebted ness, The Funding Commissioners could bond Ierrtor11l warrants into cold bear ing bonds, redcemabie at the end of twenty-five years, bearing interest at a rate not exceeding 615 per cent. per annum. The Territory was required to create sinking fund of ten per cent. per aunum of the amount of such issue. after ten years had elapsed from the issuance of such bonds and the treasurer was re quired to call in the bonds and pay the same aa fast as there was Sl0.O6O avail able for such purpose
 Substantially the same law was applied to the counties. Mir. Wolney. as is charged by Banker Henderson. of Tue SOB, ln the interest of some money sharps m the Eaat, had the law altered by Con gress so as to issue bonds running for fifty yeals and making all bonds, whether Tor Territorial warrants OF for obligations created by counties. municipalities or school diatrlcls, territorial obligation. The Ierrtorel Funding Board, on the application oi any of the properly author lzed authorities of the above political SUBDIVISIONS, must issue Territorial bonds Co cover their indebtedness aud assume the payment of the interest and principal i lhereot The Auditor or Board of equal izatieg is tolevy fax .Ipon thc munici pahile3. counties and school districts to cover the interest and the principal as 1t comes dne' and the collectors of the said political subdivisions are to collect it and pay It mic the Territorial Treasury. The bonds arc to baar five per cent. interest per aiihilm, and there Is no provision for levyIng 2 taX io pay any portion of the | pfncPai or the cancellation of any DOT ilon oi the bonds until after fifty years | nave elapsed, and then only ten per cent oi such bonds annually In other words, under tlns bill, no political community in ' Anzona can borrow money for less time than lilly years to hquidaie its floating debt; They cannot Day two dollars and a hall interest on every dollar bonded, but, as money IS worth IS much to the taxpayer as any one else, the money paid m interest should be compounded which 1 would amount to eight dollars for every I dollar borrowed.
 The PlenlX Republican, Governors s 1 prvate organ, claims this as the great pahacea to give speedy relief to our peo- pie We do not want i9 borrow money Tor any longer time than is necessary. The rates of interest are growing less and less every year on all first t-class securities, and ib len years, at most, if Arizona is blessed in the meantime with good, eco nomlcal government, whatever portion of ] Il T ia 1A1 ! lnto bonds ot three or four per cent and sold at par or a premium. This applies to the debt If the Territory.
 The poliay of ihe Territory becoming sponsor Tor county, municipal and school district indebtedness Is something new
 m the way of legislation, and should not Tor a moment be tolerated The pre- ccdeGt would be vicious. Any board ol trustees Ih agy school district, when they wanted to create d6ht could build q school house aud have the funding board issue bonds for it. The entire scheme ].
 wrong. Those who create debts should
 pay them The territorial authorities should have nothing i0 do with the fund
 nag or paying of obligations created by l the counties and towns and, least of all
 with those created in the several schoo
 districts. 1t encourages e3travagance II our local governments, and is clear ana
 direct inYaslop of the principle of homo
 rule, dear tO every Arizopau The law If carried into effect, WGaid cost the peo
 pie many millions that should bs sav ed tO them. Let It b. corrected by the next legislature Evidently Governor 1 WOilicy is not a financial success. Or sueh niqiiers he should consult the Hon
 F. W WeIi.