The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-07
SEATTLE, SATURDAY. DEC. Z.
THE PLEDGE OF TWO YEARS AGO.

THE PLEDGE OF TWO YEARS AGO.
In his annual report for 1898 Mayor Ron
aid informed the people that the outstand-
ing warrants had been funded into bonds.
and. he concluded:
at is now time that the city call halt
In her course Of mourning Indebtedness"
This was the decision OF nearly every
voter OF tho city at that time. Thousands
voted reluctantly for the issue OF those
bonds. and most OF them uttered a deter
Tnination never again to vote for an In
crease OF the citys indebtedness. Within
two years the people are again asked to
vote for stiil larger debt than has ever
been incurred at one time.
There Is "A financial phase Of the present
proposition which seems 20 have been al
most overlooked. All prior issues OF bonds.
while nominally per cent, have been sold
on per cent basis. that is. through
commissions and discounts the cost to the
city was the same as II the bonds hal
been per cent. bonds. on July /, 1898.
bonds TO the amount OF s650.00o were de-
clded upon TO cover an indebtedness OF
so22.65l. but they were not sold until the
close of the year. by which time the debt
had been increased through accrued inter
est To s6i9. 1881 This delay. together with
the discount on the sale. still left a de-
flelency amounting to so1.2l5.s1. most OF
which has been running ever since at 10
per cent per annum interest until IL is
now about S3l.oco.
Now, II bonds bearing per cent Interest
had 10 De sold at the rate OF per cent,
although the bonds became an invlolable
obligation of the city. with the advantage
OF the interest being paid regularly at half
yearly intervals. how can 1t be hoped TO
float warrants at tho per cent rate. when
the interest is not to be paid until the
principal is paid. ana some OF that Is not
60 be paid for fifteen years2
The result - inevitable that the con-
tractors viii make allowances In their bids
sor the necessary discount. and the cost
a. their work VIII Do from Is per cent To
- per cent higher than II paid for In cash
OF In regularly paid. Understanding bonds.
Resides this. grave questions OF law may
arse as to the validity OF warrants issued
s.derably from those existing in the Spo-
kRae ease. There The ~oTk Rad been coa-
trscted Tor ana begun ana the money Ie-
SalIy raised. but b. the failure OF banks
She money was tied up sua Spokane was
confronted With an emergency which hu-
man prudence could hardly have roresaen.
and for which me law had furnished no
Seattle. We have borrowed money NJ 70
cur constitutional limit. We have Mater
system adequate TO our present needs. aud
40 pressing public necessity calls FOR ex-
ceptiond Jsdctal action.
We caaao; hops 30 inaueucs rabld aavo-
gates 81 policy 81 going in;e debt now.
reckless % the future but these sire Eravd
considerations wa'ch came, fan 70 have
weight With men Who have become eau
sious through ;he tit;er experience q our
pas; risky financial policy
For two years now tAe city has not -
sued warrant Of AIRY kia1 II has firm
" adhered 20 thu determination 20 keep
within is iacone. and y "a lrconcc.vahle
thai a. sooa al ths lessons ard pledges
should ba cas- 20 the N.a3s ana another
vas, liability - 50 seriously entertained
shat vote et ths people should - consla-
cred necessary. We believe n submit
sins such questions 70 'he people: 81 IS their
risat 70 "a heard on a rropositioa which
sfects their material Interests - direeay
Hod hrsoly. 81. "a Nave imp.a,1t cont
dencs that they VII set the.r veto &C.
sidediy against usors dsht ent vote Ne '