The Bridgeport evening farmer., 1909-11-27
BONDING
 EXPENSIVE Except When Necessary to Obtain Productive Enter prises Which Will Pay for Themselves.
 Scheme Proposed by Tax Payers League Means Immediate Annual Appro- priations of $36,O to Continue for 50 Years. If Tax Equalization Will Not Produce Sufficient Revenue for Permanent Improvement, Then Bonds May Be Justified.


 that the moving spirits behind the Taxpayers League are using the Fire mems increase to stalk other game. Their real interest. judging by the character of rhe advertisements. for which they are SO liberally spending money. would appear to be the promo ton of ccheme to bond the city heavily. This. to say the least, is the impression winch many thoughtful persons have received
 One who is thoroughly familiar with municipal finace said this morning. sThe Taxrayer who is induced to take <22.o0O away from the firemcn to Jumping out of the frying pan into
 ..Nosning.s continued the speaker. ~cou1d be more foolish than the state ment 70 often u1Ade fin the advertiEe- msnts me s. Of oda the tax league: that you .s can 900 expended annually.
 What is a bond7 It is mortgage When all the citizens bond the city they do the same thing that one man does when he mortgages his home But in the former case all the homes of the city are subject to the mort gage. In the second case only the one particular home is nub5ect t0 the mortgage A t-ss AK s.u.. '. - -
 : man eosla % s. 3ss sss Fo 70 to @ . ssak s9 sa9 ho could pay the interest on that amount The interest on 5000 would be at ( per cent. $40. But S2fo would not buy the mortgage. The bank borrower had home worth at least 5000. nor unless he was willing to pledge his home for security.
 Neither can the city go to the fhoney kings with $z3.oo0 and set them to loan the city sso0.o0o. The banhers in which the City of Bridgeport would be permitted to pledge all tho prop erty of its inhabitants for the debt The Common Council would be re- bankers would scrutinize the mort gage to see if 1t was properly made Then and not until then would they loan f60o. .o0o- On the following year the city would have to pay S24.000 for long an the mortgage continued. This assumes thnt the bonds are per cent bonds
 aNor is this all Just as the time In which the mortgage must be paid is sometimes fixed in the deed when a private mortgage Is made. So the time of payment is certainly fixed in the deed under which a public mort gage is made
 The usual term or a mInlCXrA1 bond when a large sum is borrowed Is 50 years. Therefore the city must set aside a sinking fund to pay the princi- pal when it is due This sinking fund. for an Issue of s600.00o would amount to s12.oo0 per year. we are now in a position to declare that the pseudo economists of the Taxpayers league. are mistaken. when they say that S23,O00 win buy $600.000 worth of bonds. This sum will not quite pay the interest on such an amount This sum is S12.000 less than the amount re- quired to pay the interest and estab- fish the sinking fund
 .sIn other words these interesting fnanciers wish the citizens to take s21. GOO from the wages of fremen. not to put its money into the pockets of the tax payers. but to use it for the purpose of mourning a yet large mum icipal expense.
 'sTo make 1t palmer. As the matter stands the citizens will appropriate S23. GOO for the hremen- As the matter will stand, If the Taxpayers league has its way, they will appropriate <26. 900 a year for 50 years- They will thus pay out for the use of $500 0.O00 some what less than s1.s00.ooo Great, isn't itf
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