The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-01-13
OUR FIRST GOLD BONDS.
Topeka Has to Pay but ga Per
Cent by Making Bonds Pay
able in Gold.


Lawful money of the United States"
that time honored phrase was stricken
from a new bond ordinance last night
and the word gold inserted in its
place.
The reminding of the viaduct bonds
was the occasion for this change in the
7 established rule and~the consideration
was a rate of three and three quarters
per cent interest-the lowest ever Sc
cured in Shawnee county. 1t was this
consideration, which is a powerful one,
that Influenced the council to make the
change. Five per cent is the lowest that
Topeka heretofore has been able to Sc
cure.
The New York Life Insurance COM
pany agreed to take the bonds through
Mr. Edawrd Wilder, treasurer of the
Santa Fe and the councilmen who voted
to insert the word gold" for lawful
money of the United States were: Ben
SON. Burgess, Dickinson, Morgan, Round
tree Skinner and Warner. The other
members were not present and so did
not vote.
There were originally $4,000 in via
duct bonds. The coal hole fund was
transferred to the sinking fund which
makes $27, 900 in the sinking fund which
will be applied toward the payment of
the bonds and the balance left to be
refunded is but $4,000.
There was some question about the
transfer of the coal hole fund. When
the matter came up Mayor Fellows ask
ed whether it was the purpose to use
the money to apply on the bonds and
Councilman Burgess VINO made the mo-
ton said that 1t was.
Mayor FeIlows-I think that 1t might
be wise not TO use this money now. We
are under heavy expense. The new en-
CINE for the electric lighting plant will
cost 81 500 and there will be $500 more
for a building and then there is the cost
of continuing the repairs on the as
phalt We can sell the bonds at a low
rate of interest. We might invest this
hOV 6G a nd
use it only when it is needed.
Councilman Mergan-I think that the
suggestion is a good one. The expense
will be heavy and we had better pre-
Councilman Burgess-I understand
that we will have plenty of money any
how.
Mayor F'ellows-There will be about
Councilman warner-It seems to me
that this is a simple question of fig
ures Will we have enough money to
run us without this coal hole fund? If
Indebtedness.
Councilman Skinner would like to
know if Councilman Burgess got his
information from this office?
Councilman Burgess-I did.
Councilman Skinner-f we have
money enough I am in favor of apply
ing this on the bonds
Coupcilman Burgess motion to trans
then adopted.
When the ordinance was read Mr..
Wilder asked to be heard. He said:
when I heard that the city was about
to refund $24 900 in bonds thought this
would be an excellent opportunity to
signalize the confidence as expressed in
the result of the last election. The
question of interest is not a vital one
but the question of faith is everything
/ wrote to two of the largest insurance
companies and told them that we want
ed to dispose of our bonds at lower
rate of interest than ever before and 1
received very excellent letter from the
president of the New York Life
1.-The company requires only that the
bonds be made gold bonds for that is
their custom They are trustees for
their policy holders and they make 1t a
rule for the protection of these policy
holders to buy only gold bonds. When
you make a bond it means that it is a
gold bond and why not say wl1a1 you
mean 1t simply shows that the city is
not looking for any way out of paying
its just obligations
CouncilmanBurgess then made the mo-
ton to insert the word gold" which
was adopted.