St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1910-10-12
Bonding for Highways.

Some of our esteemed cOntempOr-
aries seem to assume that one of the
blessings of a permanent highway
system is to be a big bonded debt.
What great concern, they ask, car
ries out it's improvements without
such a debt? Indeed, the bonding
feature is held up so alluringly that
we are almost made to believe that
no successful man, company, cor
poration or state exists without a ire
mendous debt encumbrance, to con-
tribute it's blessing to his welfare.
Now we concede our own poor
capacity in economics, but we believe
old Ben Franklin's axioms about
about avoiding debt were pretty safe
and good to follow. We believe, too,
that the same rules apply to big con-
Germs, or states, or countries, as to
individuals. A debt-whether you
dress it up stylishIy, call it a bond,
an incumbrance of collateral
is nothing after all but mean, nasty,
troublesome debt. 1t clogs the wheels;
it absorbs income; it shadows pros
perity, as long as it exists. Interest
must be paid upon it, and money paid
as interest is not always we'll paid.
Finally, the principal itself must be
met and the debt discharged, a con-
summation that the very initial OBJ
legation contemplates.
We do not regard debt or bonding
with such apprehension that we
would never advise, but we would
have to feel a most pressing, urgent
need for the thing that required
the investment, and we would be
willing to assume the debt only as
last recourse when it's assumption
seemed necessary to realize a thing
positively more beneficial than the
debt, with it's attendant risks, could
bring of evil.
In regard to the proposed per-
manent system of state highways, we
thoroughly endorse it. The work
should begin at once on carefully
studied out and approved lines. AS
to financing it, we are of the opinion
that it will not be necessary, or even
advisable, to borrow or bond. Am
pie and sufficient funds to carry on
the wOrk-as fast as it can be well
carried On-are available from the
current income of the state, with the
introduction of reasonable economies
and the limitation of other large
special appropriations to actual
needs. Under the present tax sys-
TEN our revenues are increasing fast
If we were but to apply this natural,
steady increase to road improvement,
keeping other expenses where they
are, we should build as many
miles of good road for the next few
years as we readily can, with meth
DDS available. The roads would serve
just as well as though constructed
with borrowed money. And they
would be paid for from the start.
Another thing: A bonded debt for
highways differ materially from a
bonded debt for water, or electric
lights, or something that is bound
to yield steady income from the in
vestment, from which the debt can
be retired. The benefit of improv-
ed highways will be private bene-
fit, primarily, and an Improvement
from which no state income as such
can be derived, from which the debt
can be retired. Ultimately, it will
all have to come from taxation.
Under all the circumstances, we be-
lieve there is no warrant for bond
ing to build state highways, although
it may be the stylish, up-to-date
| method of financing such undertake
ings.-[Hera and News.