The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-04-10
Tie Bond Question.

Tie Bond Question. I
To Ghc Editor Of the Post: "a
Tho time for holding the election to DE-,
terminc whether the city shall be bOndn
for $50, 900 is drawing near and is a vcrs
important step, and will have vast in
Auence in making the future of Big Stone
Gap. l deem it proper, with your permits
sion, to throw some light upon the subject,
through the columns Of the Posr.
To the most casual observer, it is all
admitted fact that there are many I'M
provcments that must be made II the
town ever becomes place of Importance.
There must he regular system OF sewer
age adopted and carried into effect.
Streets must be brought to grade, paved
or macadamised 4 city hail is OF vital
Importance, 4 market place must be
provided, and many other things that viii
come TO the front ~ the city throws OIL
the. swading clothes OF infancy, and
assumes grander proportions
To do this necessary work, money in
considerable quantity will be required
Then the question arises, nov can these
expenses he met?
The corporation is hampercd on every
side in its effort to raise money by State
laws, many Of them, in my opinion un-
necessary and hurdcnsomc. We can
probably raise the coming year some SIX
or eight thousand dollars, by taxation,
licenses, etc. This sum. when deducted
then from the sum necessary to carry Oh
the city government, pay current eXpeh-
ses, Etc, would leave a mcaScr amount
indeed, to cxpcnd in sewerage, street
work, and other Improvements greatly
important We have less than thous-
and inhabitants ut the present time, ana
if tax was levied to pay for all these I'M
provcmcnts. it would bankrupt almost any
property holder. Therefore, TO raise
the means for these Improvements
from our present resources. is simply i'm
practicable.
The next means TO raise The money tor
these improvements is to bond the town,
and permit those who shall come after
they are made and enjoy The benefits, to
contribute their proportion Of the payment
Of the same.
This has been the policy of every rising
town and city, and no town or city ever
accomplished any thing to speak of that
did not place upon Itself bondcl debt
These bonds are to run for - years,
bearing a rate of per cent interest.
Gen. r. \. Ayers stated in the council
that he would pledge himself to place $}o,-
600 bonds at 30 cents on the dollar. and
if he can do that. it will he as easy to
place the whole block of 500 900 a. part
of the same If sold at 90 cents, it would
give the city $4,000 to be drawn from the
MONEY ccntcrS, and paid cut to working
men in Big Stone Gap. This expenditure
would benefit business in many ways.
The interest Oh $50.00o at per cent for
20 years would lie 100000 1t is also pro-
yided for in the ordinance, that a sinking
fund shall be created. and each year one
fifth Of the amount--$2, JO)-shali be de
posted into this sinking fund, Si.2oo on
the first dav OF July and $ 80 on the first
day of January of each year, thus making
the payments easy. and when the bonds
mature. the money will be ready for their
redemption Now the interest is an i'm
portant item. exceeding The face of the
bonds by 10000 yet, when we take bus
mess view OF the transaction, it assumes
less gigantic proportions.
Each wear then must be deposited - 900
TO meet the paymcntsoit he bonds. Al the
end Of the first year, this 5000 would be
safely invested. say at / per cent. At the
commencement OF the second year. the
accrued interest Of 500, would he added
to the 5000, and compound interest would
commence. have not made Il close cal
culaton. but the actual amount Of inter
est paid to the bondholdcrs, above that
received from the deposits in the sinking
fund would dwndlc down 10 Il small sum.
There is another important factor in
this arrangement By using the funds
derived from the sale Of these bonds, in
less than FIVE years the sewerage system
could be established, and all the principal
streets put in perfect order. y city hall,
market house, bridges and school houses
built. Then there would ho no necessity
for levics to he made on ahUtyiHG proper
ty, for all these improvements would be
made. 4 man selling his property would
charge for them, and thc man buying
would expect to pay for them.
This plan takes the load Of heavy tax
alton from the shoulders Of the few and
places it upon the shoulders Of the many.
If in ten years our population has reach
ed 10000, the rate Of taxation would be
lighter, and if at the end OF fifteen years
we have 10000 inhabitants the amount
would be much less.
l have viewed this question in all its
aspects, and 10 me it is simple solution
Of it. Every property holder should look
the matter squarely in the face, and if he
does and acts consccntion>., ard for the
permanent advancement and prosperity Of
the coming metropolis of the South, he
will record his vote For the issue of
bonds. Yours truly.
j. B. ADAMS