The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-07-16
A COUNTY LOAN UNNECESSARY.
Was Why the Commissioners Decided
Not to Borrow $4,000.

|
Not to Borrow $4,000.
The refusal of the county commissioners
as their last meeting to pass the resolution
calling for loan of $4,000 to pay the
county's pro rata Of the school fund and
other unpaid accounts has developed some
criticism. II is from people, however, whom
a majority OF the commissioners says do
not understand what they are talking about
| The action OF the commissioners, instead Of
bringing hardship, saves the taxpayers a con-
siderable sum.
! Commissioner Smart said yesterday that
| the statement that only one OF the commits
sioners had pre- vented the loan is entirely
! incorrect. al was the first tooppOse It, said
| Commissioner Smart, land did so from
purely business point of view. The money
ia not needed now, and can't see anything
like business methods In borrowing $40 900
In bulk, using it as needed, paying Z per
cent interest for 1t, and a big percentage for
commissions besides The county has 81 900
coming to IL from the tax collector aud
| this is enough 70 meet ordinary require
mentS. The board OF education, l under
stand, has a surplus OF $1,000, and IL 1t
hadn't paid the teachers In advance 1t
wouldn't have to be calling for money for
the Henry street school. II the board
wants 10 pay the teachers IN advance on
that scale It can give them notes and let
them pay the discount aud save the county.
believe in borrowing money only as IL Is
needed. and the $40, 900 is not needed now"
Commissioner Meinhard said he is not
and was not opposed to borrowing, but he
fails to see why the county should borrow
more money at one time than is needed and
have it lying idle and drawing heavy in
terest
Commissioner EstiIl, who wac the third
member Of the board to oppose the loan, ex-
planned his position fully and pointedly.
COT course" said, he "the county will not
have enough money TO run 1t until the taxes
for this year begin to come in, but when the
tax collector pays over the balance Of this
years collections the county will have suffi-
oent funds to pay its current bills up to
Aug. /. As to the amount due the board of
education that can easily be arranged. That
body has enough money to settle all claims
that can be adjusted In the next two months
There is no financial difficulties In the situa-
ton. Furthermore, the county is due the
board nothing until the final settlement of
the tar collector
II, with a majority Of tho board of
county commissioners" continued Commits
sioner Estih, objected to borrowing money,
because il Is not good business to make a
loan when there is fair prospect of paying
debts from your assets or collections. Those
parties who think the county commissioners
should borrow money, doubtless don't know
that banks won't discount the county's
note. unless the commissioners indorss it
personally; that is, become personally liable
for its payment
Now there Is something else about this
borrowing money that the people don't IN
derstand- When the county has its note
discounted. it not only has to pay the dis
count, but the county treasurer Is entitled
TO his commission of 25h per cent. when it
comes into his hands, and ! 4 per cent.
when the note is paid. For the luxury of
borrowing $40, 200 for four months it would
cost tax payers in discount 5000, and COM
missions 81 500, making total of 50, 400.
This would be- paying interest on money
the most OF which, for the greater part of
the time, would lie idle In the vaults of
probably the very bank 1t would be Dor
rowed from.
ut is no hardship to the smaller creditors
OF the county TO wait a little while for
their bills. Once upon a time when the
county affairs we're managed by the same
crowd that is always carping about the
present commissioners, the county's obliga-
tions were hawked in the corridors of the
court house and sold at shaves of 20 TO so
Per cent Doubtless some people would
like 20 see that again, but they will
not have the pleasure and profit Of doing so
as long as can prevent it, The county
commissioners don't issue their checks until
there is money in the county treasury to
meet them. | try to manage the county's
business TO the best interest of all the peo-
pie, not few people"
Clerk Dillon of the ommissioners gave the
same figures as Commissioner Estlll quoted.
He said nothing is due the school board
until Tax Collector McGowan makes his
returns