The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-12-23
uttered at the Billings Postoff1ce as Second
Glass Matter
TUESDAY,, DECEMBER %, 1902.
AN UNFAIR

AN UNFAIR ADVAN
diversity of opinion as regards the
wisdom of the advice of Register Long
that the state dispose of it's remaining
agricultural lands, all must agree
that the other recommednation-for
a change in the law regulating the in
vestment of the money in charge of
the land commissioners-is a good
and timely one. AS now restricted
the commissioners are not permitted
to bid more than par for county,
municipal or school bonds. He rec
ommends to the governor that the Law
be so amended that the commission.
ers may go into the open market and
compete with bond buyers for the pur-
chase of desirable securities and if
necessary offer a premium in order
to secure them.
1t is true that under the law the
state has the advantage of having first
call on such bonds and that their sale
to the state is mandatory if it wishes
t. avail itself of this undue advantage,
but even this is not right or just, as
all must concede. True, the officers
entrusted with the duty of investing
the states idle funds do not always
make use of their power and often al
low school districts and counties to
sell their securities to whomsoever
pays them the most. This, however,
does not make the law any less OBJ
~jectionable. 1t is present on the stat
desired. The reason for the law is
not difficult to see and the object of
it's enactment is very apparent. A
desire to insure to the state a safe
channel for the investment of it's sur
plus or idle funds with the highest
possible returns was the motive that
their zeal to benefit the state the
lawmakers went to the extent of work
ing an injustice and hardship upon
the several communities composing
it. The latter are prevented from
obtaining the highest prices for the
securities they find it necessary to
secure the means for making needed
communal betterments. This is man
ifestly wrong. The state should not
be placed in a position where it may,
so to speak, enrichen itself at the ex-
pense of it's people. The advantage
it nov has in this respect should be
removed. Communities do not issue
warrants of Indebtedness for fun or
to provide sources of investment for
those blessed with an abundance of
ready money. They do it only when
some urgent public necessity arises
which calls for the immediate ex:
penditure of large amounts and which
cannot be raised by ordinary means
within the limit of the time at com,
mand. 1t is to secure this money
that counties, districts and municipal
tiles float bonds and pay liberal rates
of interest to those who choose tt
come to their assistance. Instead o.
arrogating to itself the arbitrary pow
er of taking advantage of the temper
airy need or distress of its
communities by compelling then
to come to it first with theil
bonds, the state should be made tt
occupy the same position as any 9th
er investor; that is it should be de
prived of it's present power and com
PEELED to bid as high as any othe
capitalist, or even higher if the ma
ture of the securities offered justife
the investment.
If the legislature can be brough
to look at the matter in this light an
change the present law it will ear
and receive the thanks of the severa
communities within the state that i
time may find it necessary to incur
bonded form of Indebtedness.