Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1903-01-07

The paramount question before tha
municipal authorities of Richmond kor
settlement during the coming year.. said
City Accountant Carlton Mccarthy yea-
terday. '.is the refunding OF the s pe1
cent city: bonds that begin to mature In.
1904. Clear water and other questions q
public policy are minor matters in com-l
parison with the very vital issue that
viii! confront. the Council this. year whsl
the preliminary steps will have to be taiu
an to provide for the refundIng Of the 81
per cent. bonds
In the announcement OF the New York:
Lite Insurance Company. published IN
the financial supplement- of one OF tbs
metropolitan dailies. 1t is a noteworthy
fact that among all the municipal bonds
held BY that corporation as assets. the
Richmond SIS have the highest rate of In
terest.
How does It happen. Mr.. Mccarthy.
said the reporter, that Richmond has
outstanding an issue zgof bonds upon
which the city has to pay such rate az
interest In the neighhorhood OF per
cent
The City Accountant gave some inter-
esttng facts In connection with these 8
per cent bonds, which annually drain
the city treasury to the extent Of about
$4,000 In interest. There are $I179, 900
worth Of these s per cent. bonds OUT
standing that mature during the period
l904-1909. and the question of whether the
sinking fund is to be attacked to redeem
them at maturity is matter Of live In
terest to the city government OF Rich
mond. S.
Mr.. Mccarthy has prepared completes
figures for the benefit OF the Finance
Committee Of the Council with reference
to the redemption OF this issue OF bonds
and also for the per cent. bond issue
amounting to sL6s700O which begins to
mature at q period Immediately following
the maturity OF the 8's and extends to
1914. He advocates the refunding of the
entire lot of these two issues at rate
OF Interest Of 3k or per cent. which
means that the interest paid by the city
after the refunding will be reduced one
half In the case Of the SIS and one third
in the case Of the 6's. ut will be out OF
the question. Of course. for the city to
take up these two Issues at maturity, and
the integrity OF the sinking fund should
not be impaired in any degree by the res
demption of any portion Of these issues. =
said Mr.. Mccarthy. ssa
Issneti mt Critical Period.
The Richmond SIS were issued at q
iO1 City
portion of the issue was due to the need
OF money for the establishment Of the
public schools forced upon the city by
the Constitution that had been adopted
only few years previous. The issue was
1oated during the period OF 187E1Si5-
Money demanded high rates Of interest
at the time Two hundred and seventy
five thousand dollars worth Of the s.s
were used for the construction OF the
New Reservoir. There were thousands
OF unemployed worEmen In the city at
that period, and while a new reservoir
was needed, its undertaking was hurried
as means to furnish employment sc
hundreds OF men who were idle. The
moral effect upon tie working element
OF the city was considered by the Coun-
Gil when the ordinance .or the construc-
ton OF the reservoir and the bond Issue
was passed. The very causes that put
so many men into enforced idleness drew
ers, and rare of interest was attached
to the bonds considerably greater than
would be tolerated In these times. Not
withstanding the necessity for the Issue.
It was considered a bad piece OF dnan-
ciering on the part Of the city fathers.
and coupled with the nismanagement OF
the sinking fund through period OF
twenty-five years, an incubus Of dett
was fastened on the city that along with
other bond Issues requires this year
about s500.10 for Interest and redemption
purposes. Indeed. nearly one third Of this
entire city alimony Is used to carry ita
debt.