The Bridgeport evening farmer., 1912-10-09
BONDING

It is better to be a lender than a Moreover It is better to own thing oneself than to share the ownership with somebody else. It is better to draw interest than to pay it. These are maxims which none will have the hardihood to dispute.
 Yet occasions arise when men must go into debt Then the aim is to make the period of debt as short as possible. That is, the aim of the debtor is to pay the debt off quickly The creditor frequently desires that it shall never be paid Men go into debt sometimes because it is convenient, as when by borrowing at per cent they can get profit of 5 per cent.
 They sometimes go into debt because they must and under these circun:- stances they may pay as much as 300 per cent per year. for the loan which they had. This practice of increasing the interest according to the need of the debtor is the subject Of much in teresting criminal law, and has been for centuries.
 It is even necessary for a city to take a debt sometime. especially if that city is not well managed by men devoted to its interests who can see more than an inch beyond their noses.
 Then the question comes on the way in which the debt ought to be created.
 It can be created in very long period under a plan which will compel the citizens to pay a great deal in interest, or it can be created for a as possible
 What is the test of the period for which the debt should be created?
 Is it For the Life of the Improve ment?'
 No
 and the life of the thing for which it is issued. A piano will last for 25 years. but few families are willing to pay interest for 25 years on a debt for the purchase of a piano. Any family that was willing to do so, |o4AAA AaS1 4OAS -1AdI1C1d1 entity If the piano cost $500. interest st per cent simple. would be s12o0 during the 25 year period
 A family that would pay interest for 90 years on a debt for a piano would certainly get itself into the probate court, its children would be found m the county home, and heaven alone knows where the father and mother would be-
 Yet Bridgeport, which is a rich city Ehe industrial capital of Connecticut with manufactures of a value greater than the revenues of small nations. aas recently proposed a new high school. and fer this new high school it plans to issue bonds, and the bill un- der which the bonds are to be issued makes it mandatory that the debt shall be created for 50 years. which means in this case. that the city must pay ssoo.o0o for a high school with a physical value of but s4oO.OOO.
 How much better to have distributed the cost of this school over the tax rate for five years. avoiding a pay ment of s40o, 900 in interest
 How better yet it would have been 70 have established five years ago. when the school was first proposed-a permanent improvement fund to be .evied one mill year There would now be in bank a tidy $5OO,00O or so. plus interest, and the school would be erected at a cost of S4o0, ,O00 less the sum which the city would have obtain d for interest
 There is perhaps one situation in which city is justified in issuing bonds for long term.
 That is for the purchase of produc- tive things. such as gas water and electric light works, things which will gay their own way. and extinguish the debt incurred for them.
 That is to say. it may be proper for the city to borrow at per cent, in order to get per cent. while it at the same time reduces the cost of the commodity f sells to it's citizens.