The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-09-06

terest. The board has no statutory author
lty or power to DO this, and if it had it
would be very unwlse to exercise it, and
money-loaners would not care 10 take
pledges on public property as good secur-
lily, and question il money could be had
or less than 10 per cent. interest in the
present condition of the money market.
Many foolish people pledge their homes and
other property at times when they
imagine they need and must have money
Tor certain purposes, believing that they
could easily pay when it came due, who
have found to their sorrow that they could
not and their homes have been lost. A
prudent NAN, ii he needs means to bridge
over temporary difficulty, will do the
best he can without pledging his home.
In regard to the advisability OF calling
new election and getting authority to issue
bonds drawing q per cent interest instead
OF per cent. The question of interest was
thoroughly discussed by the finance COM
mlttee before any report wa made, as also
the subject whether they should be legal
tender or gold bonds, and the result was
that per cent gold bond was recon-
mended as the most economical and best
marketable bond that the board could issue.
1t will be found that the interest on ali the
bonds authorized for the full term for
which they are to be issued at per cent
Will amount to 1926, 900. Five hundred and
twenty five thousand dollars. Now if we
were to increase the rate to per cent it
would amount to $500, 900. Six hundred
and thirty thousand dol airs, or an increase
| of one hundred and five thousand dollars,
and this possibly would be considered by
| your reporter as good fnanciering. In order
| TO overcome temporary embarrassment
a. the pres snt time when the board may
have to pay interest at 10 per cent. on a
few thousand dollars for maybe three Or
| four months, until the regular revenue of
] the board comes in from the taxes levied,
he would ask the people to pay this extra
Sl50000.
| The present condition of the money mar
| ket may prevent the bonds being sold at
par for little while, but in the meantime
we will have TO pay rents in place of in
terest on bonds and put up with a few in
| conveniences; but in the end the board
will be the gamer, for the decline in the
| price of real estate that it will be neces-
sary for the board to secure before many
| buildings can be erected will fully compen-
safe the board for any delay occasioned by
failure to sell bonds.
The board would be under no necessity
today Of borrowing money if all the tax
paying portion of the community had paid
| its taxes as contemplated in the law
and as many public spirited citizens did, n o
| matter If it did seem little unjust, yet
| they realized that the board could not con-
Duct the schools without funds, and the
early action OF the board in regard to those
taxes was all that could be asked by the
citizens, and they need have no fear thai
the board will squander their money reck-
lessly III things that are not needed or that
it will act unwise in regard to financial
measures, as your reporter would have the
public believe.
The expenditures of the school board fol
the past year have been published in detail
showing the name of every person that has
been paid a dollar and for what purpose
This is not the case with all public corpor
ations.
In conclusion let me ask that paper 81
influential as The HERALD will be careful
how it criticises the actions of public off
GERS. Let it be fair and just to q alike
Respectfully, JOHN n. PIKE.
SALT LAKE, September ), 1891.
UNITED STATES PUSTUFFICE
Closing of mails, August 2, 1891.