The record-union., 1893-10-12
AN OBJECT LESSON FROM KERN.

AN OBJECT LESSON FROM KERN.
The question of a bond issue for road
building and erection of public buildings
has been agitating the Kern County COM
munity for some time. On Tuesday the
people by a large majority voted for
bonds for $3.50, 900 for twenty years.
The same subject will, for the purposes
of permanent road construction, very
soon agitate the Sacramento community.
The example of Kern is therefore of in
terest to US, and the arguments used
there during the campaign are to be of
value here also.
The opponent of the proposition to bor-
row there made his strongest point when
he told his fellow-citizens-as the oppo
nent will do here-that S25O.O0 for twenty
years means of interest 900 annually,
or $500, 900 in all.
That is to say, in twenty years $500, 900
will be paid to get S25OOOO worth of per-
manent roads.
But the Kern County Californian had a
ready answer for such oBjectors. 1t
pointed out first that the whole sum need
not draw interest for the whole term, but
may be made redeenable in blocks in
ten, fifteen and twenty years.
Secondly, the county assessment roll
already increases each year. According
TO all experience in road building of the
right kind by communities, the assess
ment roll will still more largely increase
its total annually because of good roads.
That means decrease of the tax rate and
decrease, almost extinction, of the road
tax. The margin of gain in those direc-
tions, in good conscience must be deemed
to its full extent as an offset to interest
on the bonds.
Thirdly, the opponent of the scheme
must consider his individual liability. If
bond issue is rejected by his community,
and direct tax ordered instead to raise
the full sum of $3.50, ,0OO-for the roads
must be built sooner or later-the tax
payer actually puts out the sum he is
compelled to pay, without interest. For
if he did not have the tax to pay he could
lend the sum at per cent. interest, or a
greater rate of income than those who
buy county bonds will receive from him
for interest if bonds issue.
This is not all; the direct tax will not
increase the circulation of money in the
community the bond issue will, and thus
benefit all in the community. The inter-
est upon the debt is ten-fold offset by
the economic benefits, social and general
gains to individuals and the community
by reason of having the permanent good
roads in use during the whole term of the
debt.
The Californian formulates this propo-
sition to illustrate the affirmative of the
debate:
Let US call the man who pays SO direct
tax for roads-which SO he does not reflect
would be S22 in twenty years at simple inter
est-X. Dollars and suppose that the bonds
carry. \. Dollars, as property-owner, is
years, and SO at the end of that time instead
OF paying SO right out of pocket and losing
sixty cents year for all the rest of his life.
Perhaps this is not strictly true, for
while X. Dollars would lose 90 cents
year all his lite, as stated, he has gained
the good roads. But then, he, too, would
have the good roads under the bond issue
system.
Our contemporary added: "Disprove
the figures, you who are against the bonds
if you can. The challenge is thrown to
you. Here they are. Without bonds, by
direct tax, X. Dollars in twenty years is
out SO. With bonds, X. Dollars pays his
share Of the interest and principal, and
in twenty years is out only Sl1 49 all
told. Objscting to carrying on public
improvements that are of immense value
to the people, when at the same time it is
possible to reduce the rate of taxation, is
something that x. Dollars, if he will stop
to figure for two minutes, will oppose
with all of his might and main."