Arizona republican., 1908-11-04
ARIZONA.

| ARIZONA.
Phoenix, Ariz.-Tha much-adver-
tised prosperity of Arizona, the land
of opportunity, finds convincing echo
! in the records of her financial con-
dition, BY this is meant every
phase of the situation, including
school district, town, county and ter
ritorial finances, all due to a healthy
commercial expansion and wise, care
full and honest performance of pub
| lie trusts. The territory is one of
\ the few American commonwealths,
if not the only one, doing business
on an actual cash basis. Current
monthly bills are paid in cash on
presentation to the treasurer of the
warrants issued, whether they be
drawn against the salary or any
other fund. Moreover, a new terri
torial penitentiary to cost s125.0O0,
and added construction at the hos
pital for the insane to cost $4,000,
are now in progress and the cash
for this expenditure is available by
direct appropriation and not by a
bond issue. The territory has de-
posits in various Arizona banks for
which it receives liberal interest on
I
| fore a money lender rather than a
borrower.
The bonded Indebtedness of the
territory is in excellent condition,
and every obligation is met promptly
when due. the privileges of early
optional payments often being taken
advantage of. Part of this indebt-
edness consists of bonds issued for
particular purposes years ago when
the territory was in debt, but the
major portion of it are securities
known as funding bonds. These were
the vehicle for cleaning up county
indebtedness. County bonded debts
were settled by exchanging county
! bonds issued at high interest rates
| for territorial funding bonds bearing
I low rate of interest but more de-
| sirable in the markets because more
stable and backed by greater Sc
curity. The counties reimburse the
territory as Indebtedness natures.
much of it being now wiped out and
the greater part of the county bonds
having been funded.
Debt Is Small.
In none of the municipalities do
some. though a few are quite heavily
in debt OF the school districts.
numbering something over 300, many
have no bonded Indebtedness and all
bonds. are backed by ample valua-
tions of real wealth. Territorial
bonds are therefore considered
much desired security and even small
issues of school bonds are sought
after. while no trouble has been
found in placing municipal bonds at
par and usually at a good premium.
Concurrent with this evolution the
territorial tax rate, and tax rates in
most of the counties. has been con-
stantly reduced. The total bonded
debts of all the school districts in the
territory amount to s766,937 while
the valuation of the school property
alone is $1,409,7SS.
Banks Are Strong.
In respect to her banking interests,
the territory has reason to feel
proud. Due as much to the con-
sentative judgment of the bankers
as to anything else, Arizona suffered
less. relatively speaking, than any
other section of the United States
during the panic of 1907. The bank
ers appreciated the firm foundation
on which the business prosperity of
the territory rests and knew that
disaster could, only follow a loss Of
confidence, which it was their privi-
lege and duty to prevent. While
other institutions east and west re-
sorted to scrip and boarded their
cast, most of the Arizona banks re-
fms 20 10 hi, -4s.
greatly by the firm stand of the
Phoenix and Prescott financial insti-
buttons. For a short time it became
necessary, as a precaution, to resort
to the use of scrip in Tucson, where
large pay-rolls required much ready
money, and in Bisbee and Globe,
where occurred the only failures dur
ing that strenuous time. OF these
failures two were in Globe, both
national banks. Both resumed bust
ness after a temporary close, reor-
ganiZed on a more conservative ba-
sis, by the same gentlemen who pre-
sided over the old concerns, properly
adjusting all accounts. They are now
regarded as perfectly sound and pros
porous institutions. The Bisbee fail
ure was also a national bank and
the investigation of the authorities
disclosed that the end came through
somewhat questionable management. !
coupled with the tumble in local |
copper stocks with which it had be-
come involved. 1t is, therefore, the |
only institution that actually went |
to the wall in the entire territory.
Bankers Stand High.
1t may be said of the Arizona |
bankers that they are not mere |
money changers, seeking the profits |
nf I,nf l.;