The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-08-13
sf5 /. (. . -. =. IL. s3i4
v0ERus|A'.a.|||.N|'||. WEST 8 /
FOR BONDS |. \ S NOW v
General Interest Rate Rate Higher.
Than When the r efttnding
Il. Fever Was ii Control.
SENTIMENT AGAINST " Y j BONDS D:
Distinct Advance in Price 81.
Ml,l5o Money vvit III 4 II the Past 5#
s "a ~ Three Years. III
SENTIMENT AGAINST BONDS

In Wow II the VIC espread attn ton
being given at this time e the prioos
Of bonds, the following from Kansas
City to- tho New = ork n Evenirg Post VIII
prove Of interest: 81 Nd % II IL sS5i
Discussions started i In New York BY
tthe low prices brought IN tho city g re-
cent bond sa1o do not surprise tho 1Vost
5rhe experience 81 this scot ton ls worth
reviewing. The disastrous results OF our
bond Issuing prociivlties In the 1lineties
'taughtsa lesson; & prospeiit ~ came and re-
funding became "a erase AS soon as the
time limit allowed. \ # All s over Kansas 81.
Nebraska and other parts OF the prairie
West q movement was IN progress to-
ward taking Up tho old bonds and issu-
ing new ones mt q lower rate Of Interest.
! The Interest rate went down under
cornpeu ton until, instead OF 8 and y per
cent, therp were few bonds left that paid
more thar 4 1-2 under the new reg lrne.
5dcfallted on their bonds: they brought
to the legislatures g. plea dor RELIEF. Where
school funds held the bonds, Il was given
through the issuing OF d a new series OF
bonds OF d value that the county could
meet, and reduction OF IA the interest.
With private holders the settlement was
more dif flcul !, Ebu many investors took
the school funds View OF the case and
did like wise. AS Ia result, there is now
o. general ability to meet tho interest
and the securities are n good standing. @
4 81 But with prosperity came the old
form OF expansion; many cities and coui1-5
tiles IN the West are now Issuing bonds
again-more than fore In ten years.
They are fors The most part for public
none for the old wildcat
enterprises that f1icted the boom towns w
In earlier days. s.s35 sS8 10 s$!5
1.-THE sentiment sis still generally against
bonds. II an Issue wins at the polls It
/ has To- be recognized that It Is for the
public good. The new 6 generation still
sticks Il Ia Tx the theory that bonds K are Q
4detriment to a community Indeed, some
sections mutually agree to stand O five
gyears,S or az seven years extra levy OF
taxes IN order to- build a new cour thousc
/ orr a. bridge raj or 4 than have q "a bond
Now. however. ano Their thing Is becon-
Ing noticeable. Many communities are
not able to secure ibidd ers for heir bonds
after they 4 are Issued This Is because
the general interest rate Is higher than
when / he refunding fever was u n control.
Then 4 per cent bond went at a pre-
MUM Now, frequently. there Is no rush
for these, and large cities that have de-
imanded S1a per cent. money have found
Intensely es unable to disp pose OF their #se-
curities. 81 The price Of mon ey In the West
Is distinctly CHER than threeSyears ago.
More ISL needed BY Eeillde rs. 4 who will pay
higher rate {orfs ind ustrial Sor specu-
flatiye purposes and the stock market,
too. has begun to- draw on the general
supply ss ~ If, A 4. 9ii ~