Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1910-12-14
CITY COUNCIL

Iuu MI. n. II. OCnlCib Noo tDSiNSeoe
Police Commissioner from the Third
ward by a joint meeting.
BOARD OF ALDERMEN.
: Mr.. Field, from the finance com.
nittee, submitted the final report OF
he committee in reference to the re-
'unding OF the city debt. The report
will be found in full elsewhere in the
Gazette. -
Mr.. Field said much OF the work in
with the exhibit had bee
accomplished previous to his appoint
ment on the committee which had also
been aided materially byAuditor Price
Continuing Mr.. Field said:
"As shown in the report Just pre-
;ented and read, in March, 1909, as the
time OF maturity OF the bonds OF 1879
approached, it became evident that.
there would be somewhere in the
OF $4,000 OF our now
civ bonds dnexcliauged and nusoid,
and that some provision would have to
be make for the redemption OF the old
bonds, either by temporary ioancor
the sale OF the new bonds to the highest
bidder. The finance committee sdyer-
tised for bids, or for the glhmis..
sion OF a business jor fiscal pro-
position whereby the city would be
enabled to pay for the maturing bonds.
Representatives of Messrs. Hambie-.
ton & Co., bond brokers, OF Baltimore.
the Citizens National, aud the First
National Banks, Of this city, were
present. The only offer for the pur-
chase OF the bonds was received from
Hambleton & Co., at 1926 and M
terest. The committee, after con
thematter very carefully,
felt that, in yiewof the generous
aud patriotic response on the part
Of our people in exchanging the
old 1865 for tho new As on 4
par basis. in face OF the fact that other
OF corresponding values
were selling around 80, it would be
right and best TO make every possible
effort to dispose OF the balance o. tie
bonds around. par, and for this reason
it would be best to negotiate tenn
porary loan, and carry the bonds with
that end in view. The bid OF Handle
ton & Co., was therefore, declined, and
An offer OF the First National Bank OF
Alexandria, to negotiate q loan Of
800, 0C0-or more, at 3 IL per cent.
for four months, was accepted. The
loan continued at 10 per cent. until
January 1st, 1910 eight months. from
which time it has paid 4 per
cent. notwithstanding that commercial
paper in Philadelphia and Baltimore,
rs we'll as smaller communities, was
paying 6 per cent. and demand col
lateral paper was freely offered at 8
and 81 per cent. / do not mention
this last fact TO exploit the success OF
the bank in carrying this loan at the
low rate, but merely to show condl-
tons as they existed, that we may see
that we have much upon which TO con-
ourselves. We we're not in
cIned to be pcssimistic- as regards the
future, or become alarmed by cory
temporary wind that blows, but We
could not continue indifferent to ex,Ss,
ing conditions. as regards 4 per cent,
securities, which appearedto our minds
and to the minds OF those who, in
larger fields, we're in better position To
Judge as to the future OF such securities
After carefully considering the matter,
We felt justified in submitting to you for
your consideration certain facts which
come to US in the experience OF other
communities and in the regular course
Of business, and that now that the COM
mittee had shown its good faith by a
conscientious effort to dispose OF the
remaining bonds on par basis, it was
we'll to yield to conditions and make
the concession necessary to effect a
sale. City Of Danville and city OF Nor
folk As have been recently offered at
90 and 99%, respectively, yielding
nearly Al per cent. City of Lynch.
burg As are rather freely offered at 80
and interest. yielding about 4.S1 per
cent. These prices include brokers'
profits, or commissions. The city OF
Philadelphia opened bids on May 10th
for 100000 of 4 per cent. bonds
only S847 600 were bid st about par;
and It is said they will have to raise
the rate to float them above par, as
other large cities have had to do.
On May 23rd, the city OF Baltimore
opened bids on s2,4G0,00O OF 4 per
cent. bonds, and only $240. 600 OF this
amount were bid for as high as par.
These bonds are non. taxable, which
should make them especially attractive,
as, at that price. they are practically a
4 IL per cent. investment for residents
OF Baltimore. The bids we're as low as
95, and averaged 81 IL. We do not
feel that these prices are due ih any
way to temporary conditions, but are
the result OF a gradual demand on the
part OF investors for higher rate. For
some time the ordinary interest rate.
on municipal bonds especially has
been so much less than can be real
lied on money used in other CHANNELS,
that buyers simply refuse TO consider
them. In the larger money centers
where rates are usually lowest, demand
loans secured by active, listed collaterals
are bringing from 5 per cent. to 8 per
cent. Il was therefore, unreasonable to
expect that the loan would be carried
much longer at a 4 per cent. rate. We
we're therefore, face 10 face with the
proposition Us To- whether II would not
be better to sell the bonds on a basis Of
other Virginia bonds and be rid OF the
matter once for all, or TO pay the slight
t-. l.. "a. ard sftti bdvA the - a :