Los Angeles herald., 1891-05-17

the amount OF obligation is apt to be
figured in excess OF safe margin on the
value OF the raw land, VIZ, the land
without the water; also because the
cost OF the proposed system is only an
estimate, subject to conditions impossi-
BILE perhaps OF later fulfillment.
The contingency of abuse must not be
overlooked. The facilities afforded by
the Wright act will induce men Of &C.
sanguine temperament to go into the
scheme as q means of "booming" their
locality on an outlay OF very little cash,
and, by Issuing bonds, attempt to de-
velop their property far in advance of
actual requirements, double discounting
the future and giving practical force
to the scriptural injunction, sufficient to
the day is the evil thereof" leave pay
day out OF the count. Ambition to fill
Che important offices provided for in
each district may also furnish motive
for much enthusiasm in certain places
and cause the possibilities of the situa-
ton to be viewed too hopefully. Herein
lies serious menace to the popularity
of these bonds with investors. Foolish
or fraudulent conduct in this particular
direction by one locality, while not de-
tracing one iota from the real value oil
the securities offered by another, may
cause unfounded suspicion to rest or
first-class bonds.
The attitude of our legislature ano
courts is most friendly to the system o
irrigation districts, because it aims tt
build up the state by offering security
whose validity cannot be questioned
expending the amount borrowed upoI
the improvement of the property
pledged and deferring payment OF th'
loan until the developed productivenes
of the land will reasonably render sucl
payment easy. The general sentimen
| of our citizens is in full accord. Thei
strong desire to rapidly settle up ou
state, develop her productive resources
and increase her wealth, all impel {
friendly attitude towards any plar
claiming to accomplish such results.
One of the strongest presumptions tina
the status of irrigation bonds is not full,
established occurs in the shyness exhi
bited by California bankers toward
them. The rate of interest fixed TO
them may fully account for their failur,
to invest on their own account, but un
settled status can only be assigned TO
their lack of recommendation Remov
these uncertainties and the bankers o
California will be as ready to speak wei
of the bonds as any board of trade o
chamber of commerce ever dared be
and, l venture to say, as able to find {
sale for them.
No proposition of later days offer
larger possibilities of benefit to Cali
fornia. The results aimed at by tn,
system are, in scope and magnitude, ia
beyond the limits of private enterprise
The design possesses many elements o
strength and soundness, but confidenc,
must be completely established in all it
provisions to achieve the desired result
beg, therefore, while appearing TO
the nonce as an objector, to suggest full
investigation of the subject by the bank
ers of California, especially those O
this city, in order that, while acknowl
edging the possibility OF flaws in tn
carefully constructed plan, they ma.
direct their efforts intelligently ant
earnestly towards establishing such
status for irrigation bonds as will
justify unstinted recommendation to in
vestors, and insure steady and conserv
ative development of our state along tn
lines contemplated by the originators O
tho system
GEO. Ii. STEWART.
los AnOa1aa Nav 10 1901