The state herald., 1909-02-26
OFFICIAL PAPER OF PHILLIPS COUNT,
Bond Proposition.

We understand that few Taxpayers
OF the county are advocating paying off
the debt of the county by making a
special levy for the next three years
instead Of issuing the 20 year bonds
drawing 6 per cent interest. If such is
the case, we fail to understand how,
from business standpoint, they can
figure out the wisdom of such busi-
ness proposition
Suppose, for instance, the share of
certain taxpayer is $500. To pay off
this debt in 3 years, he must pay annu-
ally 500. Money in Phillips county is
worth at least 10 per cent interest and
it is worth that much interest to the
party who handles it no matter whether
he borrows it or owns it. To make
these three annual payments we will
say he borrows 500 for 20 years, 500
for 10 years and 500 for ls years at 10
per cent interest. When these three
notes are paid principal and interest,
the taxpayer will have paid in all $50.
Now what would the same debt have
cost him under the present county bond
proposition. II this same debt of $500
Is placed in 6 per cent bond at the
lend Of 20 years when the debt is paid
In full, the taxpayer will have paid
1850 or s2l0 less than he would pay un-
.er the plan Of paying off the debt in 8
Fears.
This is not the only advantage that
te bond proposition has over the cash
i,.lyment of this debt. III this county
HT is paid in the next 3 years, this
i$A.p-ysr-~ill psy 4lis- s8ea- a-b~t, ~ che
debt is paid at the end of 10 or 20 years
the increased valuation Of the taxable
property Of this prosperous and grow
ing county will have very materially
reduced his share Of that county debt
and, instead Of paying what he would
now have to pay. he will pay a much
less sum.
Again, to pay this debt off in three
years, would require an extra levy Of
at least l3 mills in addition to the ordi-
nary tax levy. Add to our ordinary tax
which is certainly high enough to suit
any one. an extra tax Of l3 mills and
we would have tax that would be the
heaviest burden the taxpayers of the
county were ever called upon to bear,
tax that would deal this county blow
that it would not fully recover from in
10 years.
The continued rapid growth and de-
yeiopment Of our county depends very
largely upon our success in inducing
people from other parts Of the country
20 come and make their home in our
county. These homeseekers are always
willing to pay reasonable tax but, II
the taxpayers, by the defeat Of this
bond proposition, adopt n policy that
will give US AN unreasonable and ex-
.eedingly burdensomc tax, this very
fact will act as powerful check upon
immigration to our county, and the ox-
,lanation that the high tax levy will
continue for only three years will no.
,atisfy the homeseeker either. for he
will conclude. and with considerable
reason too, that, when no better busi'
ess judgment is shown by county
than to pay OIL debt with 10 or l2 per
cent money when 6 per cent
money was offered for the pay
ment of the debt, he has reason to sus-
pieion that there may be other foolish
actions in county affairs to follow.
The HERALD has no more interest In
this matter than other Taxpayers Of
the county. Il has for q years, always
bocn ready to do what Il could TO help
advance the best interests OF Phillips
county. The county now has the best
prospect before Il for rapid growth and
development that Il has ever had In It's
history and the HERALD would regret
exceedingly TO see made any mistake In
county affairs the damaging effect OF
which, as we believe, would be as seri:
ouA and far-rcaehing Ms failure tonow
place our county debt In shape In
which Il can be handled with the least
possible annoyance TO the people Of the
county.
| II this bond proposition fails. there
will be- no more attempts Mt placing
the debt in bonds as the county com.
miasionors would not be justified In call
Ing another bond election. The tax