The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-17
THOSE COUNTY BONDS.

| W z 44cNC 1AOl SpdC6 IlOW IOr the OlUGTS
They all seem to ignore the fact. tc
some extent at least, that the propo.
sition is, not to go into debt by issu-
ing bonds. but to lessen the interest
on debts already contracted In con-
sidering this important question it is
| perfectly useless TO raise a discussion
on the wrong done in plunging the
county into the depth of debt in which
it is now involved. What has that to
do with the proposition to bond the
county for the purpose of paying that
debt and lessening the interest upon
it?
| Let the taxpayers understand that
the county is now owing more than the
SS75O0O for which bonds are proposed
to be issued. However wrong it was
to incur that debt, the deed is done
and the situation must be faced. The
culpability Of the officials who did it
| does not enter into this matter at all.
The present county officers had moth
Ing to do with that. They are not any
more responsible for it than are the
people who declaim against it.
To our mind the question is mar
rowed down to the proposition, shall
we pay eight per cent per annum on
the debt owing by the county of five
per cent? If the taxpayers prefer pay
ing the larger interest they should
vote against the bonds. If they want
to save from $1,000 to $4,000 a year
interest, with just as good prospect of
he IL
upon the warrants. they will vote.
Bonds, Yes"
The objection that the bonds will be
taken by eastern capitalists IS not
sound. In the first place that is not
feature Of the issue. There is moth
ing to prevent home capitalists from
bidding on the bonds if they choose.
On the other hand, obtaining eastern
capital at a low rate of interest is not
usually considered a bad business
transaction, when money is worth
higher interest here. Why paying eight
per cent. year to one class of money
lenders should be preferable to paying
five per cent. per annum to another
class, is a business proposition which
we fail to see is sensible or economi-
cal.
The objection that the interest will
have to be paid in gold is of about
as much weight as other reasons ad-
vanced against the bonds. What diff
ference would it make if they had to
be paid in silver? 1t win be United
States money, not the metal gold or
the metal silver in which the interest
will be paid. And silver dollars would
be obtained no cheaper nor easier than
gold dollars. AS currency. the silver
dollar is as good as the gold dollar.
The 1915, 900 obtained by the bonds will
be gold or paper representing gold.
and the amount of money that will be
put in circulation will be of financial
benefit to the community.
The idea that when the bond money
is spent more bonds will be called for,
or that more warrants will be issued
is fallacious. The limit of debt is
reached and gone beyond the legal
limit. 1t is urged, yes, but the for
mer county court went beyond the
limit. hat is there to prevent the
present county court from doing the
same?" The answer to that is, no.
body would buy bond or take a war;
rant which would be valueless because
illegal.
The reason why warrants were ac-
cepted to the amount now shown to
be illegal, was because it was not
known that the limit of the law had
been overrun. Now it is known be-
cause the courts have passed upon
the question. Therefore the fear of an
other excess of financial authority Is
groundless.
The notion still seems to be enter
tanned that when the bonds are issued
the county court may divert the funds |
TO the payment of current expenses.
That is a reflection upon the men who
the county court, for which |
we think there is no just cause. This |
is not a matter Of party politics. 1t is |
one Of domestic economy. 1t does not |
follow that the county affairs will be
administered simply be-
cause the officers are Republicans. |
And apart from the written obligation /
given by the county authorities to de-
vote the money to the liquidation of |
the present Indebtedness, and the fact !
that the election is called on that OBJ
legation, an injunction from the courts
would stop any improper appropriation
Of the money raised for the special
purpose % funding debt already ex-
listing.
It is easy to take up the language
Of the selectmen and interpret their
words to mean something they did not
intend. That has been done by some
Of our correspondents, and does not
constitute fair argument nor does It
touch this pivotal point in the contro-
versy: Shall we continue to pay eight
per cent. on debt which we legally
owe, when we can reduce the inter-
est to five per cent? We have the OPP
ion of paying for the bonds in ten
years If we can, or in twenty years if
we cannot pay in ten. It will take
Just as much money to pay the princi-
pal in one case as in the other, and by
bonding we would reduce the interest
30 as to save about $4,000 a year,
which can go towards paying off the
if desired.
There is such a prejudice against
ponds that it overpowers the reason of
| great many reasonable men. But
his is a plain business transaction,
md prejudice ought TO be thrown to
he winds. If it is examined fairly,
With full understanding that it is
lot proposed TO go into debt hut to