The Bemidji daily pioneer., 1912-03-20

tax. the proceeds of which are an
nually expended for road building pur-
poses. This system has certain adj
vantages, for example, in connection
with this expenditure of the annual
tax, While only limited amount Of
work can be done each year, there is
no opportunity for wasting large sums,
The people Of the county gradually
adapt themselves to the changed con-
ditions, and the persons placed in
charge Of the road work have an op-
portunity Of becoming efficient by their
own experience before they come to
handle larger sums Of money, and an
other thing which has considerable
weight with a large class Of people IS
that the county is kept out Of debt.
Another advantage Of this system is
that when a county has large taxable
wealth small annual levy will yield
as large a sum as can be wisely ex-
pended. H. - 81
The more enlightened and the more
commercial a people are the larger Is
the application of the credit system in
their business. In the early settle
ment of this country the money for
development and business enterprises
was borrowed from Europe. Grad
ually the eastern states increased in
wealth to such an extent that they
not only paid their European debts,
but had money to loan for the. up
building of their sister states in the
west At the present time some Of
the western states are joining with.
those in the east in lending money to
Europe During the past 100 years
on the system Of "going into debt for
public improvements this country
has risen from small dependent ma
ton to the head Of the list. -.
/ The disadvantages Of the "pay as
you go" system are that the work Of
road building proceeds too slowly. In
a county which has 500 miles of road,
100 miles of which should be consid-
cred it's main thoroughfares, If 1t
raises tax sufficient to build FIVE
miles Of good road each year twenty
years will be required to improve the
4 100 miles, and many Of the citizens
of the county would continue to pay
taxes for years before they would re.
ceive any benefit therefrom.
The system of raising money for
road building by issuing bonds is gem
orally unpopular, because people dread
the idea Of debt.
, The great advantage in the system
OF borrowing money for road building
is that by securing the. larger sums OF
money for Immediate expenditure the
: work can be pushed more rapidly, and
& the roads which would otherwise re.
;. qulre twenty or thirty years for their
Improvement can, under this system.
be finished in four or Ave years. The
r people Of the county begin to receive
benefits from the work more quickly,
and the benefits are sufficiently great
to enable them to pay the interest on
the borrowed money and to provide g
sinking fund to pay back that money
) with more ease than they could pay
d the annual taxes in advance OF the
8 completion Of the road. 81.
a Under the "pay as you go. plan the
/ present generation builds the roads ani
8 | the next generation gets the benefit Q
them. Under the bond issue polio!
! both the present and the future genera
! tions receive the benefits and both he'll
to pay for them.
It may be argued that the system Q
borrowing money for road building j
!, more expensive for the reason that tn
money borrowed must be paid back q
r well as the interest thereon, which q
o per cent In twenty years will amoun
q 10 az much as the principal, and there
8 fore for each dollar borrowed two wi
: have to be paid back at the end 9
twenty years. This ID not strictly trus
ssl howeysr. The money win be borroMe