The herald., 1897-12-04
SATURDAY. DECEMBER 4. 1897.
IMPRoVIDENT REFUNDING

The election at which the voters will
express their opinion on the proposition
offered by the supervisors to refund the
county's bonded debt will be held on the
11th inst.
The refunding proposition involves in
plain and concise language the pay
ment by the people of two hundred and
fifteen thousand, eight hundred and
forty-three dollars (s215, 5,S4S) in the shape
Of interest in excess Of the amount they
will be called upon to pay for interest
on the bonds as they now stand, making
the item for interest alone amount to
three hundred and ninety-four thousand
two hundred dollars 1894, ,200) on a prin-
cipal sum of six hundred and eighty-one
thousand five hundred dollars (s6S1, 5000.
which is the amount of the principal %
the bonds which it is proposed to refund.
If this is not imprudent waste and ex-
travagance it would be hard to find one
example of the kind.
The alleged benefit to be obtained by
this large outlay of money is in the fact
that the taxpayers, instead of having
to pay up these bonds along at various
times during the next thirteen years
that is to say between now and no
will have twenty-four years in which to
pay them, for the first five years oc
which term they are to pay no principal
at all. Added to this the interest is to be
reduced to four per cent, difference Of
about one-half of per cent per annum.
The sole supporting argument adduced
In favor of undertaking this enormously
increased burden is that IL were wise to
let "posterity' pay for the Improvements
that the people have made fer its benefit.
But when these identical bonds were
issued the same cry was used, anu with
some justice then. If succeeding
boards of supervisors had done their
duty and provided for the sinking fund
every year as the law directs, the
amount of bonded debt would today be
much smaller than it is. There is no
reasonable justice, either to this gene1-
alton or to posterity, in perpetually
handing down an increasing load of in
debtodness which has to be carried at 4
frishtful outlay in interest every year.
Other outlays Of heavy kind will have
TO be made for the growing county Of
Los Angeles for improvements which
will require the issuance of bonds. Tho
road question is looming UP bigger than
ever and there will be further calls for
large sums to be expended in public
works, the payment for which may well
be put upon posterity.
But for the debts falling due during
the next thirteen years it is neither wise
nor honorable to put off their paymcnt.
The figures we have given show that it
Is the worst sort of extravaganza. al
though covered up under the blindine
pretense of a reduced rate of interest
truly saving at the spisot and waste
at the bunghole.
After all, the real reason for this re-
funding scheme is patent on the surface,
it is to provide gilt-edged investments
for the capitalists, the great army of
coupon-cutters who are Mt their wits
end to find employment for their grow
Ing accumulations, which they want to
see grow and fructify without labor on
their part.
The most sensible thing for the people
to do will be to pay this indebtedness as
It falls due and put upon "posterity" the
burden of paying for important works
vet to be undertaken.