The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-06-20
THE. RATE is 4 PER CENT
ENTIRE 100000 TO BE SOLD AT
ONCE.
MEssRs MCDONALD AND BEDFORD OPPOSE
They Wanied 10 Save taxpayers the $4,000
Interest on Idle Money. Finance Com
mit.ee Will Advertise
for Bids.

The Board of Aldermen met last
night and again threshed over the Street
Improvement bond straw.
As a result the taxpayers of the
city were saved $4,000.
The saving was effected by n redur-
ton of interest from ) to per cent.
On the other hand the board ordered
that the whole 100000 be issued ut
one time This will cost the city 81
900 interest. before the money can be
used. A mistake. though a small one
compared to the $4,000 blunder made
by the board a week ago when the
rate of interest was fixed at , per cent
The ; per cent rate was voted for
last week by all the members Of the
board present except Mr.. Mcdonald.
and the 100000 issue likewise was
voted for last night by all present ex-
cent Messrs Mcdonald and BEDFORD.
The report of the Finance committees
was made by Alderman Miller. 1t re-
commended that the whole 100000 Of
bonds he issued at one time and that
they bear interest at 4 per cent. Mr.
Miller stated the reasons that led ;ne
committee to recommend 4 per cent
bond. as follows:
1. A per cent bond can be iloatea
above par.
,. Large investors prefer low rate
Of interest to paying a large premium.
g. The people have voted for S.'lo.-
ooh and not the S12o.00O that a :, per
cent bond would produce
As to the recommendation that the
whole issue be made at once he said
the reasons that influenced the commit
Tee were:
1. That next year. being a campaign
year. the price of securities will de-
cline.
on n 100000 issue than on S50,tam
blocks
The motion whereby the : per cent
rate was adopted was reconsidered. ami
Alderman Parish moved to adopt til.
report of the Finance committee.
Alderman Mcdonald amended tlis 50
as to adopt only the part ixin. the
rate at 4 per cent.
The amendment was lost by a vote
of 2 to 10. Messrs. Mcdonald ana
Rpdford voting for it.
Then the question came up on Mr..
Parisl's original motion. To adopt the re-
port-that the rate be fixed ut Pc
cent and and the entire 100000 BE-
issued nj ence.
On this Mr.. Mcdonald callsd the
Ayes and Noes. The roll-call resulted:
Ayes Mcdonald and BEDFORD.
Noes 0gasse. C0rrell. crOcker
Hamlin. Jones, Miller. Parish, vii
liams, Wilder and Wynne
There were several hints during the
discussion. on the part Of the advocates
of the 100000 issue. that there was
some mysterious arrangement whereof,
the city would he enabled to save The
$4,000 interest. but nobody explained
the plan.
The nearest anyone came to Il Solu-
ton of the mystery was the following
between Mr.. Mcdonald and Mr.. Mil
Ter:
McDonald--''I'm opposed to selling
bonds for money that we can't use for
the next year Or two and paying in
tcrest on it, especially when the amount
is so large Let's issue $4,000. When
that's used up the scare in the bond
market that You SHY the Ts~"''i.tiii
year will cause will have passed away.
If ii has not it will nay us to borrow
small amounts along from time 10 time
until it does pass off rather than pas
interest for one or two years on S1O.00D.
Miller-"That' what I'm trying to T.
now-get out of paying interest on what
we've already borrowed
McDcnald--.Doess the bank agree. in
consideration of our giving them this
100000 that it will not charge inter
est on our warrants? ! understand that