The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1903-01-28
TORffUND SCHOOL DEBT
ASTORIA MAY ADOPT PLAN
USED AT SALEM.
Professor Lyman Thinks Tine
fs Opportune for n Local
Popular Loan.


Popular Loan.
Astoria, ian. 27.-To the Editor: The
action taken at the school meeting lr
this city yesterday evening. as report.
ed In this mornings Astorian, ma,
prove TO be one OF the most important
In the history OF this community.
There Is ample law providing for q
popular loan. In contracting or refund
Ing debts Of school districts. The ques-
tion that comes uppermost Is whether
the people VIII take an interest In float
Ing local bonds. Although the follow.
Ing has been printed before. some re-
cnrrence TO the experience of Salem In
floating both city and school funds may
be noticed again.
In reply to an Inquiry Mr.. j. ".
Judah, recorder OF Salem. furnished me
with details Of the effort there. City
bonds were thus first fioated. Under
date OF March 10. 1902. he states:
Il take pleasure in replying to
your inquiry OF the Sth inst. In re-
lation to the popular loan noated
by the city Of Salem in the fall Of
1899. since the matter was left al
most wholly In my hands to formu-
late and negotiate. The unques-
toned success OF the venture is a
matter Of personal pride with my
colleagues and myself.
Primarily II was to refund a float
ing debt OF $50. 900 In s percent war
rants. We bonded $50, 1000 Of this
at 4 percent on l0-year, optional
bonds. thus saving $500 on inter-
est account"
After giving some valuable details,
Mr.. judah states;
In our case the subscriptions
ran $4,000, Cr learly three times
as much as we needed" F"
In reply to an inquiry TO MIR. Baum
gartner, clerk Of the Salem school dis
trIct. :he following was furnished un-
der date Of March II, %;
Il enclose copy Of our notes.
These are signed by the chairman
and clerk, with the seal of the dist
rict attached, We opened book
for subscriptions, allowing anyone
to sign for the amount wanted. In
making the allotment we favored
the small subscribers, viz: taking
the email ones first. and so on up
until the amount reached the limit;
and in numbering them we mum
bered the largest amount No /, and
the smallest is the last number.
In paying them the largest amount
is paid first, leaving the smaller
ones for the last. These notes are
called for numerically, beginning
with No. /. The amount required
In our loan was $4,000; our sub
scriptlon was over $4,000; SO the
largest subscribers were dropped.
and the small ones taken first,
The largest note was 5000; the small
lest $50"
Conditions in Astoria would seem as
avorable as in Salem. have been in
formed. since the matter has been men,
toned, that sums ranging into the
thousands are in the hands OF individ-
nails or societies seeking perfectly safe
Investments for family or trust funds.
The security offered by school district
S among the very best, Those inter-
'sted In making success of this, the
irst popular loan to be tried in Astoria,
should take pains TO canvass the mat
ter, mention II freely and unremitting-
y among those desiring TO place funds
u widows, minors, or benevolent orga-
lizations; among the fishermen, and
'ther forehanded workmen and me-
,hanics; and even among the mill EN-
'loyes and domestics, who are laying
lside small savings for future invest
nent or a rainy day.
Ii the matter Is thus thoroughly
worked up there will probably appear
10 much available capital that the city
Iebt, and county debt, perhaps, may be
n part, or whole, refunded as the pres
mt bonds mature. The advantages of |
his community thus taking up its
'wn obligations, retaining the interest
t home as working capital, and en-
people to save their means, |
re so great as to forbid even mention |
Iere, II may be noticed, however, that |
here is money here. Agents and So
Icitors from all over the Union are
Iatly inducing our people to invest in
ttractive stocks in distant mining pro-
critics; in California or Texas petrol
um fields, or In Mexican India rubber
The history of such spec
Ilations, however much they may net
he promoters, is so well known that
he appearance of agents for them here
) matter of regret. The small
tockholder almost invariably loses his
Investment. l do not allude to thor
ughly reliable investments vouched
or or managed by our own residents;
ut to the many anonymous concerns
by sporadic drummers.
By taking up our own debts we shall
e keeping our working capital at home
nd multiply our power for remunera-
I've industries, H. S. LYMAN.