The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1904-07-15

AOtlOSi 'OANlI4S OOAAS'l III III
ury to pay it.
This report was adopted unani-
ously, so that this council, or the
portion of it that holds over till
next year stands pledged in favor
of such legislation as will prevent
the city being in the future plunged
into such a financial bog as it is in
at present, through, to use a mild
term, the wild issuance of depre-
ciated scrip.
This Board of Trade also ap-
pointed a special committee to look
into the matter of this bond issue,
and after careful and painstaking
investigation they recommended a
bond issue of forty-fve thousand
dollars, or four thousand dollars
more than asked for by the finance
committee. That they were per
haps wise in recommending this IN
crease, the occurrences of the last
few days, TO which | will allude
further on, would seem to show.
The council acquiesCing in the
recommendation Of the Board OF
Trade committee. decided to ask
the voters to authorize a Bond Is
sue Of fortv-five thousand dollars.
The foregoing Is a brief resume
of the events that led up to the sub
mission of the bond ordinance, on
which a vote will be taken tomOr-
row week.
| now desire to state briefly some
|. of the reasons which, in my opinion,
should cause every voter who has
the interests of the city at heart
to cast his vote for the ordinance:
Under the scrip system we are
borrowing the money necessary to
carry on the City's business at the
rate of eighteen per cent, at least
and probably more. During 1908
the city issued scrip to the amount
of IS22, 1920, of which S4,I23.86
was issued to the OCala Water
Company and accepted by them at
par; SIS,I95.43 was issued on other
accounts. This scrip was, except
that issued to the Water Company,
all subject to a discount of ten per
cent. and eight per cent. interest IS
paid upon it. Eighteen per cent.
on SIS.Io5.Oo amounts to S3,275 70,
whereas bonds can be issued at
five per cent. and five per cent on
SISIo5.oo is sQOQ.77, or S2,365.4o
less than the interest on the scrip,
and this amount, s., 365. 40, IS Just
the amount of the tax payers mon
ey that was thrown away last year
for the privilege of financing the
city under the scrip system.
"But," say the opponents of the
bond issue, "this interest on scrip
is a great deal imagination; we
really only pay it on very little
scrip" Let US see if we are deal
ing with imaginary interest. Eight
per cent. on the scrip issued during
1908 would amount to sI,455. 90.
Well, we have paid out in scrip in
terest during the first six months
of 1904 SI,23L6I. This does not
look very much as if interest eX-
listed only in our imaginations.
The scrip issued to the Water
Company bears interest fixed by or
dinance at seven per cent, two per
Centmore than money could be Dor
rowed for on bonds And right here
l want TO call the attention of those
who are making much of what they
are pleased to call the fact that the
Water Company must take city
scrip, no matter how much depre-
ciated, at par, to the following par
agraph in the ordinance establish
ing the relation between the city
and the Water Company: BE it
further ordained that for the pur-
pose of fully maintaining the water
works provided for herein, there
shall be annually levied and collect
ed on all real estate and personal
property within the corporate Inn
- ~ TIA CITY Of Orala 4 +ay of FIVE