Fergus County Democrat., 1910-11-29
Sell WATER SYSTEM
IMPROVEMENT BONDS
TAXPAYER" BELIEVES LOCAL
DEMAND WILL CARE FOR
WHOLE ISSUE.


1t is with great deal of interest
that l have read of the proposed plan
to incorporate the entire city of Lew
istown into one large improvement
district for the purpose Of securing
funds, by an issue of warrants, to pro-
vide for the construction of the new
water works system.
AS l understand it, it was suggested
by the engineer in consultation, Mr..
Swearingen, that it might be a good
plan to have the local or outside
banks float these warrants, at a
premium of per cent for the handl-
ing thereof, or on basis of $4,000,
to pay the banks $4,000 for placing
these warrants.
l have been given to understand
that the city administration, under
the efficient supervision of Mayor
of Our city in excellent condition, and
that instead OF these warrants being
sold and a premium being paid for
the selling of them, that there are
persons here who would be only too
willing to pay a premium to get the
warrants, in fact, it is generally con-
ceded that the local banks are only
too pleased to take them at par, and
the suggestion that we pay outside
banks premium of $4,000 to float
an issue Of this sort, with the as
sessed property Of every property
holder in Lewistown backing it up,
an actual value of not less than S3,-
100000, is not only preposterous, but
rejecting upon the city's finances and
the capabilities OF our city fathers as
fnanciers
Today there is almost $,5OO,OOO on
deposit in Lewistown and only three
months since, the banks, in order to
do business in consistent manner,
were compelled to cut their interest
rate from 5 per cent. to per cent.
per annum, and yet have this amount
Of money on deposit.
Here we have the matter OF float
ing a gilt-edged loan of $4,000, at 6
per cent. per annum. with a guar
antee Of $3,o0O,0O0 and every inch and
foot Of real estate within the city
limits of Lewistown to make it good.
And yet depositors are depositing
in the local banks at per cent. per
annum, the largest resources of any
one bank being under $2,000,00O, with
other liabilities, such as "due other
banks" capital stock" and the other
incidentals under the heading OF liza
bilities, to be charged against these
resources, not to mention the nu-
merous other depositors who are
checking against these self same re-
sources
Immediately the question arises,
which is the better investment, a 6
per cent. investment with virtually
impossible defalcation, or a per cent
investment, banking on the capability
of one man or set OF men,
During the panic of 1907, Lewis
town was one of the few cities in the
state that did not go onto a clear
ing house basis, fact that is mute
evidence of the capabilities of our
local hnanciers.
Today there is an abnormal de-
mand for money, the banks being
able to place more loans than they
really see fit to place
Under the circum stances, would it
not be matter of sound judgment,
that if our local banks do not care
to take up this loan, that the city
warrants in the various state papers,
and ! am sure with the expenditure
of not to exceed $500 in judicious ad-
vertising, that these warrants may be
sold to the individual money-lender,
in amounts ranging upward from
$500, small amount, such as this,
placing them within reach of the man
working on salary. or the man who
has difhdence with regards to banks
and keeps his money buried in an old
shoe
Some time since New York bank
ers failed to negotiate loan for that
city, but when placed at popular sub
scription was subycrbed ten times
over. and why cannot we do the
same?
/ have extreme confidence in Mayo,
Phillips administration. | have ex
trerne confidence in Our local banks
and I am sure they will be only toe
able to float these warrants withou
some outside bankers endeavoring t.
mulch an already er-burdened tax
paying community out of $4,000. 70
which we get no return.
Truly yours.
TAXPAYER.