Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-03-28
THE COUNTY FINANCES.
First Response to the New Mexican's
Suggestion Of Agitation and DIS
sion Of the Subject.

To the Editor of the New Mexican.
Santa Fe, March 28.-The NEW Mex
roAN's suggestion Of agitation and dis
cussion on the county bond question is to
ray mind nest oppoftuT5. - = -
Santa Fe county has outstanding in
round figures about 100000 in bonds, a
debt almost as large as that owed by the
territory. It's credit is impaired because
of failure to pay the interest due upon
said bonds, which has been in default for
several years past. The bonds, in con-
sequence, have deprecated in value, and
are considered in the market as worth
only from 40 to so cents on the dollar.
This condition of affairs is attributed to
the ge neral depreciation of all classes of
securities Except such as are of first
CLASSY all oyer the country, which includes
stocks and bonds of railroads, manufac-
turing, state, municipalities and counties,
and in consequence Santa Fe county finds
herself to-day in helpless financial con-
dition-in reality not beng able to earn
sufficient to keep up the interest on loans,
insurance charges and the taxes as levied.
Under this burden of debt it seems, in
word, that it is physical impossibility
for the county to meet this great demand
of raising from $4,000 to $4,000 annual
ly to pay the interest due on these bonds,
besides the necessary amount in addition
to meet current expenses. Such being
the case, the vital question is, what are
vuo IN, InN To of IF
our debt, or thought of it, would be
suicidal and dishonorable, besides detri-
mental to our future integrity and pros
perity, and any attempt or countenance
of such a measure should be at once set
upon and stamped out.
| Our citizens are unanimous that We
must have relief and that speedily. We
need not feel ashamed nor abashed to
state fairly our condition to our creditors
aud ask their aid to help US out of our
condition. Individuals, states, cities,
counties, manufacturing and other bust
ness interests all over the United States
are appealing to the generous impulses
of their creditors for fair and honorable
@ mpromise of their debts based upon
present values, and, the proposition that
desire to present to the creditors of
Santa Fe county is that they will agree to
surrender the bonds now outstanding and
accept in lieu thereof new bonds of our
county, to be issued as hereinafter pro-
posed, upon basis of SO cents upon the
dollar. If this is accom- plished the hold
ers will have in hand bond worth par
and an assurance that the interest thereon
will be paid regularly and promptly.
In justification of this proposition,
state as fact that the largest proportion
of these bonds did not cost their holders
more than SO per cent of their face value,
and large proportion was obtained even
much lower than that figure. This new
Issue Of bonds should run thirty years,
bearing not over per cent interest. If
in amount OF $350,000 or whereabouts our
fixed interest charges would be about
$17,500, which our people could readily
bear. My plan would be to apply to the
next legislature for bill to enable the
county commissioners to refund the en-
tire bonded Indebtedness of Santa Fe
county at any time within one year with
an issue of bonds running thirty years,
with interest at not over S per cent per
annum, upon condition that all the hold.
ers of bonds now outstanding will accept
bonds of new issue at the ratio of so
cents upon the dollar for the face of their
old bonds. It may be said that the coun.
ty commissioners now have the power to
make such compromise with the credi-
tors of the county, but my opinion is that
an act of the legislature would inspire
more confidence and give a stronger
legalizing effect to the proposed measure.
Now, Mr.. Editor, have written this
suggestion hastily in order to draw the
attention of the public to the proposed
scheme and to invite criticism and dis
cussion upon the subject so that we may
be ready to act upon either this remedy
or some other which the wisdom of our
citizens may suggest. Very respectfully,
VIM. NJ. BERGER.