Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1903-04-15

other property, must be figured at the
prevailing rate OF interest, and money
which is put into a public building Is
no exception, simply because the lax
payers pay the full amount in cash.
Paying the amount of thirty thousand
dollars in cash as taxes on the hrst
OF December next. does not relieve
the expenditure from the interest
charge. To adopt this latter course
would practically add that amount to
the mortgage Indebtedness of the In
dividual citizens of the county, and
that Indebtedness bears interest at the
average rate of ten per cent. which
in twenty years would make the pro-
posed building cost ninety thousand
dollars. figuring in the way the fan
cial editor OF the News does. Every
taxpayer in the county finds a good
use for all of the money he can earn,
so that he loses the interest upon the
extra taxes which he is Obliged to pay
in any n year. This argument used
by the News. If carried to its legiti-
mate conclusion. would apply with
equal force against every investment
in the county, whether public or pri-
vate, and. If adopted, would put an
end TO all progress. That may be
good argument from a socialistic
standpoint, but it is a poor one from
the standpoint of the business man.
Another argument CD he says, Sup
pose you were going TO build a house
and you had sufficient debts owing
you, II collected, to erect the same.
would you, as an individual. collect
these debts, or would you go to the
bank and borrow money and pay in
terest for twenty years." The argu-
ment is based upon a false premise
the relation Of debtor and creditor
does not exist between the county, as
an organization, and the individual
citizen and taxpayer. This so-called
argument might have some force in a
d~espotism. where the ruler has the
legal right to compel his subjects TO
pay all of their net earnings into the
public Golfers; but it has no force u
utI IL EON llllltll Mutlt lIt llulN VI
ual cannot be compelled to pay as
taxes, any more than is necessary to
meet the actual expenses OF the gov.
eminent. But let us look into this ar
gument. If the individual who wishes
to build a house has $4,000 outstand-
ing, and It is drawing ten per cent.
interest, and he can go to the bank
and get money at four and one-half
per cent. would it not be the part Of
a good business man TO allow the mon
ey due him to stand at 10 per cent.
interest, and he give his own note to
the bank at Az per cent? The finan-
cial editor of the News might over.
look such an opportunity, but 1t would
be only another proof of the charge
which has frequently been made
against him.
But there are other strong reasons
for issuing bonds for the purpose of
erecting and equipping a high school
building. as against the proposition
advocated by the financial editor Of
the News.
II is conceded that the erection of
the building before the beginning Of
the next school year is an urgent ne
cessity. If bonds are issued they can
be readily sold and contracts let and
the work completed in time for the
opening of school during the coming
fall. II, on the other hand. the Board
is required to wait until after the an
nual collection Of taxes before there
Is any money available for the pur.
pose, the contract would have to be
let with that understanding, and prob
ably would have to be let to an out
| side bidder. for the reaso that there
is no contractor or builder in our
midst who is financially able to com
plete such a building as Is desired and
wait until next December before he
can draw a dollar or the contract
price. II the contract could be let at
all on that basis, it is certain that a
very large percentage would neces'
sarily be added to the contract price
as an interest charge upon the DEFER
ed payment, and it is probable that
this extra charge would greatly ex
coed the actual rate Of interest, as II
is well known that any public work
done upon a credit basis is very much
more expensive than the same work
would have been If done on a cash
basis.
If the necessities of the case should
force the Board to let the contraci
to an outside bidder, it is probable