The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1895-08-17
THE BONDING QUESTION.

" bA.c VIC ~ hot aeTeS Win Tie view
OLA Reader" regarding the hondin
question, the article 10 given epace il
the Pass because our columns are opel
to the discussion OF all questions i.
which the public is interested, regarl
less Of our own views.
However, our correspondent figure
compound interest on the bonds, which il
unfair and misleading. The intere-, !,
70 be paid semi annually on the bond.
iiissued and there is 10 be no compound
ing.
Only by figuring compound in,eres,
can be make the principal and interes,
amount to s95,979ls befors the frat
payment on principal falls due. As sta.
cd last week. the total amount necessary
10 pay the bonds. principal and interest
iss96,6o0 ON an average yearly tax levy Of
"a mills; while to pay the indie btedness
by leaving it in warrants will require
$sl 400 and an average yearly Is, levy
Of mills for over ten years
Our correspondent says that The in.
terest will 60 to Wall street. Itmake
but little difference to tho taxpayers
where the interest go-s. The question
Tor us to consider is whether or not We
shall pay a special tax OF mills or one
OF "a mills. There is another manner
OF looking at the question. For the first
ten years after bonds are issued we
will only be called upon to pay the in
feress, amounting to 5000 annually.
making only tax ofll. mills. or diff
ference in favor OF bonds Of 2l@ mills.
The idea that ii we bond it will have a
tendency to check the settlement Of the
county is erroneous. People coming to
= new country do not nquire so m uch in
to the Indebtedness 0. county as into
the rate OF taxation, consequently the
lower taxes are tn. more izyorably they
look upon the matter.
Our correspondent figures on the in
crease in the assessed valuation short.
ening the time in which the warrant.
Will be paid, we. he fails to apply the
same rule to the payment OF bonds. An
increased assessed valuation will make
corresponding decrease in the levy for
payment OF bonds. In fact a careful
reading of hi. arguments will ccnyinc.
any one Who takes auhls,vs..----.-.--
tigais s'--.ss Ss''sa'c = to1Ihses'
%" g! ehie bonding proposition is
really the best for the people.
1t Is an Old saying that figures will
not iie." Let US examine his figures
He says the bonds, with interest, when
We make the first payment on the prin-
cipal, amount to $50, 979I9. After that
it will take nine years to pay the debt.
So in six years at iarthest
the warrants would be paid and the
money in our own hands, costing the
county little less than 10000. I.
So 1t will be seen the bond will cost the
county over twice as much as the war
rants Just how he figures this
We are unable to explain; but he
probably does not Consider the slight
difference Of few .houaaad worth men.
tion;ns. We simply mention thi, to
show that "a Reader" has not taken the
trouble to figure the matter carefully
and is as wide OF the mark in his other
statements.
The question for each voter 10 consid
or is simply one that every good bust
ness man would apply in his priyat-
Affairs: Shall we pay tax OF I mills
ON the dollar for the next ten years, or a
tax OF ~ mills for the next tel years
to pay the warrants means the former,
TO bond means the latter, with a sigh,
increase when the principal OF the
bonds begins 10 fall due.
II an individual il in debt and one
man offers him loan at per cent.
another offers it at 6 per cent. his judy
'nent would tell him to accept the las
otter. Then why should not the same
principle apply to county affairs?
II any one think. this special tax OF
mills TO pay on warrants will not be
levied, let him read the law a. passed
by the last legislature. 1t con. pelIs the
commissioners TO make the levy If bond.
are not issued. Most Of the Outstanding
warrants are held by eastern capitalists
and these warrant holders are opposed
TO the bonds for the reason thst7 per
cent. IS considered a good inter-s. on
such security. Other capitalists are will
Ing to take up 'hoss warrants at 6 per
cent. or less in the shape OF bonds.
As We said before, it will take 20 wear.
70 pay of the bonds, principal and in.
teEest, with an average tax levy of24I
mills. Were the commissioners empow
cred to levy the came tax for that
purpose, it would require a longer time
to pay the warrants than to
pay the bonds, which fact can be
demonstrated by figuring it out. So
that no matter how you look at the
proposition, the bonds are best for the
people and should be voted.
1t will take two-thirds majority IN
carry the proposition and every one
having his own and the interests Of the
people in view should vote for bonds and
Talk for bonds. Let meetings be held in
'very town in the county for the purpose
81 discussing the matter.