Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1895-07-04
Grant County 9erala
Y r. sBoWALTER,

EDITOR AND PROPRIETOR.

AE 4CAANA VI AdrL MEth GNH "a
columns Of characteristic f~allacious
arguments on bonds and the nature OF
interest. Its theories are the explod-
ed sophisms OF the middle ages.
Laws were common then which for
babe the taking Of interest at any
rate, but with the dawn of modern
times those antiquated notions gave
place to more rational ones.
Borrowed money on which interest
is paid. has been one Of the g%randest
factors in building up the worlds
colossal industrial and commercial
systems. Without it business would
be paralyzed. commerce stagnated.
labor without employment. Young
men Of brains and energy borrow the
accumulated wealth OF others. use il
to make themselves a competency and
in old age become. in turn, lenders.
making it possible for the mex gene
ration to labor 10 advantage. 70
prosper and retire.
Suppose A and B each buys a horse
for 500. A pays his money down
and b gives his note for 20 years at 81
interest. According 10 the Teller's
reasoning. BIS horse viii cost him
twice a, much as As costs. But this
reasoning is fallacious. When A
parted with his hundred dollars. he
parted with that, the use OF which is
presumed to be worth the interest.
In the course Of 20 years b viii have
paid 800 in interest and A will have
lost the use Of 500 for the same
length Of time. Assuming that the
81 interest is the measure OF the
value of the use OF money. AS loss
in use is just equal to BIS payment OF
interest. Look at it another way. If
b pays twice as much for his horse
as A does, the man from whom he
buys must receive twice as much as
the other seller does. Yet every
knows that in selling, cash
payment is always considered as good
as or better than future payment.
II Lancaster had $4,000 in its
treasury today it could not construct
water works any nor economically
than it can now by borrowing $4,000
TO pay for a system, because the city
would lose the use Of the money adj
yanced which would Just offset the
interest it will have TO pay on the
borrowed funds
This is not intended as an ar@u-
ment for or against water works but
simply to show the nonsense Of the
Teller's position. Its fallacy consists
in assuming that the nse Of capital is
worth nothing. But the Teller's
position not only IS not sensible, it is
not sincere. The Teller itself was
started on borrowed capital. With
out the assistance Of "monied men"
the Teller's editor would still lie
working by the week for a meager
When the railroad ga, built Pollock
was not opposed to bonds as LancaS-
tor's taxpayers viii remember and as
the following extracts from the HKK-
AID, al which be was then editor.
show:
From the HERALD of July p, ISIS
Railroad matters are quiet. The
opposers are not unreasonable. some
men laboring under the impression
that the tax would be onerous from
the first. some thought they would
have $40, 500 or $3.50 o pay next |
winter whore they viii have but 81 20
$40 il the bonds are issued. This
makes a great difference in their feel
ings. The night mare that held their
breath Is lifted. All viii 90
smoothly in a~little while"
From the HERALD Of July Is. 1878.
referring to the issue Of $4,000 rail
road bonds-"There was however
some bad news in the wind also.
Certain gentlemen did not want the
bonds issued and began legal pro-
ceedings 10 arrest their opposition.
There are some who 10 not
understand what amount OF taNes
they viii have 10 pay ON the railroad
town bonds. suppose a mans prop
erty i assessed AZ $1,000. His tax on
this amount il paid down would be
500. But he IS not expected to pay
amy part ot il until the end Of hive
years. He would have "a paw s. an
nuallv and al the end of tive wears
would have to begin paying the prin-
cipal. The tax cannot he very
b%urdensome and may not be felt At
an.
From issue of Aug. ~. 1S1S-.Aod
50 the clouds that lowered over anr