The Norfolk weekly news-journal. (Norfolk, Neb.) 1900-19??, 1907-03-01
BONDS MUST BRING MORE
SEWER BONDS HERE CARRY TOO
Low INTEREST RATE.
so SAYS FINANCIAL FIRM

OlIy ITedSuTeT FtddSe ftdS JUST he-
ceived a Letter From a Toledo Brok-
eraee Firm Giving View on Norfolk
Situation.
1t begins to be apparent that the
Norfolk sewer bonds will have to be
offered in connection with a greater
commission than that which Is already
offered, If they are to be sold. The
following letter just received by City
Treasurer j. Il. Haase explains the
situation from the viewpoint of the
firms who buy bonds:
Mr.. j. e. Haase, Norfolk, Neb.--Dear
Sir: We acknowledge receipt of your
letter of the 9th inst. concerning the
$40 100000 thirty year 40 sewer bonds.
In reply will say that after talking
the matter over we concluded that a
| SO basis would be about the best we
would care to pay for these bonds
that is we would take the bonds bear
ing SO interest or possibly it would
be more advantageous from the city's
standpoint to issue the bonds bearing
Az 20 interest and make us an allow
ance for blank bonds, attorneys fees
and expenses, which would be equal to
a SO basis.
There has never been a time when
the financial situation would warrant
your city selling bonds at as low a
rate of interest as 40. However, three
or four years ago when money was
very cheap you could probably have
sold AVS at small premium, but as
| you probably know, there has been
such a big demand for money in all
| lines of business in the past two or
three years, particularly in the east,
that no one feels like buying bonds
unless they can get them on about a
SO basis, except in the very large
cities.
We recently purchased an issue of
$4,000 city of Omaha, Neb., 4h%
bonds at about par, and the city of
Toledo recently sold $10O,00000 worth
of SO bonds. OF course the Toledo
bonds are short time bonds, but your
| bonds are no better, for as you know,
under the law they are optional after
| five years and have to be sold at this
optional period.
We regret this change in the rates
of interest more than anyone else as
| 1t affects us more than it does your
city-in fact, 1t practically kills the
investment business when banks and
private investors are able to loan their
money at eXorbitant rates as they have
been doing in the past eighteen
months, for in these times there is lit
tie incentive for them to buy Az and
feature is the fact that we are now
| !, apir,a hnr al
which as you know always creates an
unrest in all the large financial centers
and so it does not look as though we
were going to have cheap money
again for a good while to come, for
heretofore, when there was a strin.
gency in the money market here it
was plentiful i'll Europe, but as you
probably know, both the Bank of Eng.
land and the Imperial Bank of Berlin
raised the discount rate this year to
sc which is a condition that our firm
has not seen in the thirty-siX years
that they have been in business, and
so as above stated, we do not expect
to see bonds selling on as low basis
again for years to come.
We have handled bonds of your city
in the past and should be glad to ne
gotiate with your good people for these
sewer bonds, but if we buy them ii
must be at rate consistent with pres
ent financial conditions.
If, upon receipt of this letter and
after talking the matter over with your
finance committee, you would like to
have us send a representative there
to submit a proposition along the line
of selling these bonds bearing so in.
terest or the bonds bearing Az % in
terest with sufficient allowance to
make a so basis, please advise us and
we will have our western representa-
tive go to Norfolk within a few days
Awaiting your reply, we are,
Yours truly,