The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1913-10-10
COMMUNICATION
What confronts Us

In the fore part OF 1901 the rate
Of interest. on municipal bonds was
3 per cent, and $4,000 900 we're Dor.
rowed at that rate Later in the year
$69,000,000 were borrowed at 3 1.2
per cent. In 1912 not dollar was
borrowed at per cent. And only
s4,000,000 was sold at 1-2 per cent.
Up to 1904 less than 100000 900 we're
borrowed by municipalities. Last
year $3S3,150,S2S were borrowed for
permanent improvements, and for TEN.
porary uses enough was borrowed to
make total of $677,402, Os7. Up to
last July of this year the sale of muni.
cipal bonds amounted to S21l, ,234, 900.
The effect of all this borrowing is to
put an enormous load on the reality
values and mortgage Indebtedness.
And because of this burden, municipal
securities. are becoming slower of
sale, and at higher rates of interest.
In March, 1913, bonds to the amount
of 15,500,000, failed of sale In April,
State, County, and city bonds to the
amount of $1S,000,000 had no takers.
In May s19,0OO,OOO. In June s25,5OO,-
OO0.. In July $15,500,00O suffered the
same fate as the bonds offered earlier
in the season. Many of the offers of
bonds that failed to sell were with
drawn, from the market and readver-
tised at higher rate of interest.
And in some cases a rate of per cent
found no takers. Among the would
be.borrowers we find cities like San
Francisco, Los Angeles, Portland, To.
ledo, Cincinnati, Cleveland, Akron
and others. New York resorted to
the plan adopted by some railroads,
that are very hard up, andissued shor.
time notes. And Tennessee resorted
TO the same plan and has some 49,
100000 of this kind of paper floating
around
When New York City consolidated
with Brooklyn and other bouroughs to
make greater New York the debt of
the consolidated city s324,967, ,156. To-
day it is SLIPS, S,150,747, an increase
of s9OS, S,1S5,59l. A debt larger tnan
the National debt, which is 1866, 1885,
600. The interest on the National
debt is s22,535,321. The interest on
the New York City debt. with the re-
demptions $54,937, ,3Sl. In 1898 New
York had no debt. Now it has $109,-
702,660 And the bonds for canal and
highway improvements will raise it
to $232, 100000. What Ohio's debt
will be we will see later on.
This great increase of debt is not
confined to the states. but the cities
are following on, as fast as they can,
In this unbusiness like way. New
York city, in 1903 had a per capita
tax of $102.71. Today it is S160.42
Cleveland, ten years ago had a PEI
capa tax of $46.36. Today it is $66.3S
Ten years ago Cincinnati had pc.
capa tax of $S6.4S. Today it is S140
Mt. Vernon had a per capa tax ten
years ago of $3.50. Today it is S10.S0
Real estate in New York City now
bears the burden of 90 per cent of all
the taxes raised for city government
And the feeling is that the limit Of
real estate has been reached, for tax
ing purposes. To meet the demands
for interest, and redemptions, the ap
praisement on real estate, has beer
advanced over one billion dollars il
the last ten years. So that the pres
ent valuation, for taxes, exceeds the
price for which the property can be
sold.
A. like condition can be found il
Mt. Vernon today. Some of the prop
erty is appraised at a price in exces:
of what it will bring in the market
Ten years ago the debt of Mt. Vernon
was S27 1886. Today it is S97, 923.4S
with probable increase, in the neal
future, of fully $4,000 more for /
sewage disposal plant.
Upon whom will this increase o
debt bear heaviest? Upon the da!
laborer and the owner of little hom,
who relies on his days work to NEE
the expenses of living. The laborer
because he will have to pay NOR
rent as the appraisements on proper
ty are advanced. The owner of th'
little home because of the increased
tax he will have to pay. There il
no getting away from the fact, tina
the increased demand for money, TO
carrying on the city's work, mus
come from the real estate.
Is there any remedy for this grow
ing increase of debt? what can b
done, here in Mt. Vernon to bette