The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-03-07

To the Editor of the Indianapolis Journal:
Mayor Denny is to be congratulated, with
all others who have contributed to the
placing" of our city bonds at so favorable
a rate. AS the bond business goes, they
have done well, but is there not a better
way? We pay per cent. on these bonds
and more on some other bonds but we can
get all We want not only for our city but
for our county and State at a lower rate,
and at the same time distribute our inter-
est among our own people. If we will only
exercise the business shrewdness In public
affairs that successful business men do in
their personal investments. We have at
home twice the amount of unemployed capt.
tai that would be needed to take up all the
State, county and municipal bonds in the
State. which would be only too glad to seek
investment in such good securities at less
than per cent If II was properly applied
for. Much of this idle capital finds tenn
porary ana profitable Investments in our
building and loan associations, exempt from
taxation, but subject to some perils which
initiate against that method and much of
IL Is deposited In banks where IL brings no
interest, or at the most very little All of
this money would gladly go into bonds at
less than per cent. If only few condi-
tions were complied with.
In the first place, by general law IL
should be provided that, having accepted
and used the money, no State or munich
pality should ever repudiate the debt on ac-
count of some real or supposed irregularity
in the proceedings by which the bonds are
issued This could easily be provided for
so as to at once protect the debtor and the
creditor Debtors that higgle about their
own paper are not honest.
Second-These bonds should like United
states bonds, be exempt from taxation. In
other words, the taxes on them should be
recouped in advance, as the taxes are on
government bonds. making these the only
investments In the country that pay taxes
everywhere and always up to their full
value. Five per cent. is the lowest interest
rate i'm the business world ftx
The government gets It's money at this
minimum rate. but 1t recoups 2 per cent
the average tax rate, and pays to the bond
holder the balance, thus making sure the
taxes. Every State and municipality should
be equally shrewd. In small way we are
he pays Ii promptly, but he first takes out
the taxes owed by the payee. Our School
estate, issuing five-per-cent. bonds for much
of It; besides it has a large bonded debt, at
the same or a higher rate, Possibly not
listed for fundamentally not one of
them which may be owned out of the State,
probably true of our school bonds is GER
tainly true of our city bonds. We get no
taxes from them-,not dollar:
a little legislation: first, as above suggested
to prevent any state or corporations plead
ing the baby act when pay. day comes and
by exempting all State. county and munc-
ipal bonds from taxation-that is, by COL
coupling them when the interest is paid thus
making sure of taxes millions of money
now wholly untaXed; for not one cash dollar
in a hundred now pays taxes.
To accomplish this let the State, the
county and the municipalities issue bonds
in the denominations of $50 and multiples
thereof bearing 65-100 per cent. interest
payable annually or oftener, and let these
be the market so that men and women
of small savings can buy them They would
be much in demand that from the begin
ming banks would so absorb them that small
investors would have to pay a premium for
them, while the city. or the county or the
State would get ttS money at a less rate
than that now paid. and the interest would
be paid TO our own people instead of being
paid to the depositorS in the New England
savings banks. which now own most of our
bonds. 1t is because these bonds are I'M
taxed, through some hook crook where
they are taken, that they are sold at 4 per
cent. Why should we not exempt them
from taxation here, and thus bring New
England savings banks TO our own doors.
and pay our interest TO our own people ?
We tax the bonds out Of our own State or
into concealment. and then pay a higher
rate of interest on them through our want
Of sound business sense. Let us collect
taxes on our loose moneys by selling un-
taxed bonds at So L. L. SEE
INDIANAPOLIS, March. 8.