Coeur d'Alene evening press. (Coeur d'Alene, Idaho) 1907-1929, 1910-07-28
CITIES PAYING
Higher INTEREST
Steady Rise I'm Their Rates shown In
Census Bureaus Annual
Report.

al report TOT lSUS on the statistics OF
the 1853 cities in the United States
which had each an estimated popula-
ton of 10000 and more in 1908.
The report states that the rate for
all the cities combined was 1855 per
cent in 1906, s.s9 per cent in 1907,
and 3.92 per cent in 1908. For eft
les of 100000 population and over
the rate for 1906 was 3.68 per cent,
for 1907 it was 375 per cent, and
for 1908 it was S.79 per cent.
The highest average rates of in-
terest for cities of different sizes
were: 100000 population and over,
San Francisco, AS per cent; 100, 900
to 100000, Denver. SIS per cent;
$4,000 to 100000, Tacoma, 5.6 per
cent; 10000 to $4,000, Birmingham,
Sc per cent.
The corresponding lowest rates
were: 100000 population and over,
Washington, d. G., 80 per cent;
100, 900 to 100000, Providence,
Rochester and Hartford, 3.6 per
cent; $4,000 to 100000, Springfield,
Mass, Harrisburg, and Holyoke, s.s
per cent; and 10000 to $4,000, Ell
mira, SO per cent.
The preceding rates are paid by
the cities on the face value of their
outstanding debt obligations, and do
not in any accurate manner measure
the actual rates of interest that cities
have to pay on their loans at the
present time.
Net Interest Rates.
A new feature Of the report is a
table showing the net or actual rates
of interest that cities had to pay for
the use of money on their funded debt
or long-term bonds issued during the
fiscal year 1908. These rates have
been computed from bond tables in
method familiar to all bankers,
consideration being taken of the pre-
miums or discounts received or paid
by the cities and of the length of
time that the bonds have to run. Dur
ling the year 127 of the 15S cities of
over 10000 population sold to the
public 1S7,OS3,2Se bonds, on which
they received $5.325,651 in prem
iums and paid $4S4,456 in discounts.
Only IL cities are reported as hav-
ing sold bonds at a discount, most of
these being in the southern states.
The net rates, as determined from
the bond tables, differ materially for
many cities from the average rates
borne by the total amount of fund
ed debt outstanding at the close OF
the year for those cities. Thus the
average rate borne by the outstand-
ing bonds of Seattle is AS per cent,
but during the year 1908 that city
sold to the public 100000 bonds
to run for twenty years at net rate
of 3.S7 per cent. The average rate
borne by the outstanding bonds of
the city of New York is SO per cent,
but during the year New York city
sold to the public $66. 100000 of
bonds on which it will pay until ma
turity a net rate of 4.19 per cent.
Credit Rating of the Cities.
As indicated by the net interest
rate column, the cities of over SO0,-
900 population with the best credit
rating were: Detroit, 3.37 per cent;
Boston, 3.64 per cent; and Philadel-
phia, 3.79 per cent. The cities Of
from 100 900 to 900. 900. with high
credit rating were: Indianapolis, BAG
per cent; Cambridge, $3.50 per cent;
Worcester, 369 per cent; and Fall
River. 3.79 per cent. Cities of less
than 100000 population with a high
credit rating were; Somerville, S.5s
per cent; Lawrence, 3.61 per cent;
Taunton. 3.62 per cent; Salem. S.67
per cent; Holyoke. S.72 per cent;
Binghampton ,S.72 per cent; and
Brockton and Newton. each 3.7S per
cent.
Cities of over 100000 with the
highest average net rates were: San
Francisco, 4.30 per cent; and New
York city, 4.19 per cent. Cities OF
from 100, 900 to 100000 population
with the highest net rates were: Los
Angeles. 44s per cent: Memphis
4.S4 per cent; and Jersey City and
Omaha, APT per cent. Cities Of IN
der 100000 population which had to
pay the highest rates for the use Of
money were: Little Rock, 5.2s pei
cent; Knoxville. 504 per cent; No
bile, SOC per cent; San Antonio
Birmingham and Springfield. H., !
per cent: Bay City. 4.ss per cent. and
Wichita, All per cent.
Why Credit Terms Differ.
1t is seen that Detroit. Indianapo-
lis, and most OF the Massachusetts