The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-07-22

Lawful money advocates won tenn
rorary victory over the single gold
standard champions at the city council
last evening. The members who de-
clared they would not consent to the
issuing of gold bonds 10 refund an old
issue payable in lawful money until
there is no alternative, compelled their
opponents. whose resort to gold was
their first choice. to show their hands.
While the minority prevented the pas
sage of an ordinance authorizing the
floating Of 100000 worth of gold bonds,
i. lacked the strength to effect lawful
mercy issue. The proceedings were IN
productive Of results, except that all
the councilmen present were placed on
record whenever the test votes were
taken.
The contest will be renewed next
Tuesday evening, when the victory viii
be goldward, and Characteristic of Re
public3nism and -partisanlsm. The
Goldite members lacked only two votes
in achieving success last evening, but
the additional votes of Councilman
Rcmney and Patrick at Tuesday even
ing's meeting will make the victory
complete for an issue Of gold bonds by
the city. rather than lawful money OBJ
legations.
IT WAS A SPECIAL MEETING.
The meeting was specially called by
the MAYOR TO facilitate the negotiations
looking TO the issuing and floating or
q series of $500 GOO worth of ! per cent
20-year gold bonds, to replace the half
million dollar per cent debt created
by the city on Sept l, 1888, and which
is optional for redemption on six weeks
hence. Prior to the opening OF the
council meeting. the cOuncilmen, with
H. Il I El.an
devoted an hour to an exchange or
views on the bonding question. Many
things were said in the mayors office
which il was believed would not be nee
essary to repeat iii the regularly con-
vened session, but the preliminary
meeting served as an ice-breaker. and
crened the way for a fuller and freer
discussion in the council chamber
\ SLIGHT AMENDMENT.
Councilman Wallace took the first in
ring by moving an amendment to the
special committees report, which was
pending from Tuesday evenings meet
irg. His amendment proposed to give
the finance committee. with the mayor
and the city attorney, authority and di-
rection to Immediately arrange for the
engraving Of the new series of bonds,
instead of authorizing the special COM
rnittee TO take the necessary steps for
the issuing and disposal of the deben-
lures. The amendment was accepted
without dissent.
A CLEAR-CUT ISSUE.
That part of the committees report
recommending the issuing of SOC 81, goo
straight 20-year gold bonds, drawing 1
per cent annual interest, was attacked
by Councilman Howe, who moved TO
substitute the words lawful money OF
the United States" for gold wherever
the latter term appeared.
Buckle suggested to Howe that to be
consistent he should also move to make
the interest rate S per cent.
Howe opened the debate by declaring
he would oppose the issuance of gold
bonds until it is shown to his satisfac-
tion that lawful money series could
not be fioated for the refunding pur-
poses.
GOLD BONDS UNNECESSARY.
Fernstrom announced that a few
days ago he believed the administration
was placed in such u position that it
would be compelled to repudiate its
principles and to rebuke the people,
who. at election time had expressed
their anJipathv to the single gold
standard. by now issuing bonds payable
in the yellow coin. Now, however, he
thought the difficulty could be bridged
over another year. He favored defer
ing action until the taxpayers could
have an opportunity to say whether
they preferred a gold issue to pay off
the old series or an increased tax levy
with which to commence the sinking
fund. In his opinion a lawful money
bond would sell as readily and as adj
Tantageously as a gold bond mas
much as no effort had yet been made to
float lawful money issue. he believed
it would be prudent to make the effort
before resorJing to an issue payable in
gold.
THE CITY WOULD BE IN DEFAULT
CaHister wanted an opinion from the
city attorney as to whether the city
would be in default if neither the sink
ing fund tax levy were made nor the
OLD bonds we're called in this year.
The sections of the law applicable to
the question were read by Attorney
Hall. and in conclusion he expressed
the opinion that since it was now too
late TO levy the sinking fund tax the
municipality would be in default if the
1888 bonds were not redeemed at the
end of the first ten-year period on Sept.
l next
ANOTHER LEGAL OPINION.
1t was announced by Howe tnat other
learned attorneys differed with the city
attorney by maintaining that it was
not necessary TO commence the crea-
ton of the required sinking fund until
TIE year 1899. According to Howe the
only serious result of the pursuit of the
opinion he adhered to would be the in
stitution of a suit in court by the
bondholders TO compel the city to levy
the bond fund tax.
II will not vote for gold bonds until
there is necessity for it, concluded
Howe.
Not if it saves the taxpayers $1,000
year in INTEREST," asked Buckle.
1T may save them $4,000 year 10
begin with. but at an expense of 5000
in the end was Howe's retort.
BUSINESS WITH CALLISTER.
1t was argued by Callister that it is
necessary this year to set aside $4,000 |
for the first tenth of the sinking fund !
in the event that the series of 1888 is |
lot to be refunded with a lower inter- |
est bearing issue. Continuing, he said:
Il don't like gold bonds any more than
any other believer in the bimetallic |
standard does. AS a political PROPOSE |
ton, the Democratic members of the |
council dare not go on record as favor !
ing gold bonds. neither can the Repub- |
lican side of the chamber. But this is a |
business proposition, and the city must |
itself 20 pay the kind of money |
the lenders demand. Il is to the city's |
to 1oat per cent gold |
bonds, the same as the state is about |
to do but on u 312 per cent basis, 10 |
take UP an Old issue drawing higher in /
terest- I fail to see the wisdom of pay
ing per cent more yearly interest for |
mere sentiment. 1t is our duty TO save
s. 600 wear of the taxpayers' money |