Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-28
Low INTEREST RATE
Washington Led Country in
Cities of Its Class.
CENSUS REPORT FOR 1908
Paid 3.2 Per Cent on Debt That
Year-San Francisco Highest,
at as Per Cent.

Washington was paying the lowest rate
OF interest on its outstanding debt OF any
city in the country of 100000 or more
population in 1908, according to q report
just made public by the census bureau.
In that year Washington was paying BE-
per cent interest on its debt
San Francisco, on the other hand, was
paying higher rate of interest on its
debt than any other city of 3OO,OOO or
more population, 40 per cent.
The rates of interest cities are paying
on their outstanding debt obligations are
steadily rising, it is pointed out in the
census bureaus report on the statistics
of the 15S cities in the United States
which had each an estimated population
of $1,000 and more in 1908.
The report states that the rate for all
the cities combined was 3.SJ per cent III
1906, $50 per cent in 1907 and 3.0o per
cent in 1908. For cities of 3OhOO0 popu-
lation and over the rate for 1908 was 3.65
per cent, for 1907 it was 3.7o per cent and
for 1903 it was 3.79 per cent.
Highest and Lowest.
The highest average rates of interest
for cities of different sizes were: 300,OUO
population and over, San Francisco, As
per cent; 100000 to 100000. Denver, o.5
per cent; $4,000 to 100000, Tacoma, So
per cent; 10000 to $1,000 Birmingham, SO
per cent.
The corresponding lowest rates were:
900 GOO population and over, Washington,
D. c., 3D. per cent; 10000 to 3OJ,OOO,
Providence, Rochester and Hartford, SO
per cent: 10000 to 10000. Springfield,
Mass, Harrisburg and Hoiyoke, 3.S per
cent, and 5000 to 5000, Elmira, 3.6
per cent.
The preceding rates are paid by the
cities on the face value Of their outstand-
ing debt obligations, and do not. In any
accurate manner measure the actual rates
Of interest that cities have to FAY on
their loans at the present time.
AS indicated by the net interest rate
column, the cities Of over 3OO.OcO popula-
ton with the best credit rating were:
Detroit. 337 per cent; Boston. 1894 per
cent, and Philadelphia, $40 per cent.
The cities of from 10000 to 100000 with
q high credit rating were: Indianapolis.
$40 per cent: Cambridge, 1856 per cent;
Worcester $3.50 per cent, and Fall River.
3. 20 per cent. Cities of less than 100000
population with a high credit rating
were: Somerville, $50 per cent; Lat
renee, 3.61 per cent; Taunton. 1862 per
cent: Salem, 8.67 per cent: Holyoke. 3.72
per cent; Binghamton, az per cent, and
Brockton and Newton. each 3.73 per
cent.
Cities of over 100000 with the highest
average net rates were: San Francisco,
4.9O per cent, and New York city, 4.19
per cent. Cities Of from 100000 to 3OO,-
GOO population with the highest net rates
were: Los Angeles, 4.49 per cent: Mem
pills. 4.34 per cent, and Jersey City and
Omaha, APT per cent. Cities OF under
10000 population which had to pay the
highest rates tor the use of money were:
Little Rock, $40 per cent; Knoxville,
5.O4 per cent; Mobile, 500 per cent; San
Antonio, Birmingham and Springfield,
ILL.,. ) per cent; Bay City, 496 per cent,
and Wichita All per cent.
Reasons for Difference.
1t is seen that Detroit. Indianapolis and
most of the Massachusetts cities can
borrow money on extremely favorable
terms, while most of the southern cities,
New York city and others have to pay
materially higher rates. The length OF
time that bonds have to run has some
effect upon the rates OF interest that
cities have to pay for the use OF money.
Among other factors thrt determine
that rate may be mentioned a small net
debt. Detroit had the smallest per capita
net debt Of any city Of over 100000 In
ha bitants, and indianapolis had the small
est of cities Of from 100000 to 3OO,OOO pop
ulation Each of these cities sold Its
bonds on the most favorable terms of
any cities of their respective groups.