Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1914-08-03
THE BONDS.

On account of the bond situation |
throughout the country, probably oc-
casioned by the war clouds lowering |
over Europe, Ashland did not receive
a satisfactory bid on her $175,OOO
auxiliary water bonds. Just how long
the situation will remain is problem
atical No doubt it will be some
months before normal conditions will
again prevail and the bond market
open up. Therefore if Ashland de-
pends upon the general market it is
doubtful if the bonds can be market
ed and the work begun in time to
have the project completed by the
opening of the Panama exposition.
However, if the citizens of Ashland
and Jackson county will subscribe for
SIS, 900 of the issue the Springs Com
mission can proceed with the work,
for it has plan whereby the physi-
cal plant can be built and paid for
with bonds.
Under the law the bonds must be
sold at par and accrued interest from
July /.
Already citizens have agreed to
take about $4,000 of the $4,000.
II other citizens desire to invest in
these bonds the committee would be
a. ham frAy, fhar1
The bonds are payable $4,000
every five years after ten years and
net per cent interest, payable semi
annually.
There Is no safer or better per
cent investment offered than this
issue of Ashland's auxiliary water
bonds.
Experience has proven hat few in
vestments can be found that offer as
sure and good returns, extending
over a long investment period, as
5 per cent municipal bond. There is
no better security. The income is
certain. While farm and city mort
cages carry higher rate of interest,
the income is far less certain, because
in times Of financial stress, just the
period when it is hardest to procure
money from other sources, those ow-
ing notes find it hardest to pay inter
est when due, and the note holder is
left to carry the interest sometimes
for several years and eventually tC
take over the property. Not so with
municipal bonds. Seldom in the
history of the United States have mu
nicipal bonds defaulted in interest Of
principal. Interest on the proposed
Ashland bonds is payable every 81,
months, July and January first, ant
it is a moral certainty that the in
vestor will be able to collect his in
terest on the dot. II will only b
necessary for the investor to TAX
his coupons to his bank and deposi
them as cash. All things considered
TO the man whose investments are de
pended upon for certain and regula
income a per cent municipal bon
is better than an s per cent mortgage
The east is living easy on 4 to
per cent bond investments. The ives
is paying the bill. II is better bot
for the investor and the municipalit
II the bonds are absorbed by hon
investors.
Beside that, there is no better spe
ulative investment at this time. tt
new currency and banking law or
ates a new demand for municip
bonds. They are now good for CO
lateral at three-fourths face valu
deposited by affiliated banks with Il
government reserve agencies. Th
creates a new market for municip
bonds which should bring the inte
est rate down to at least per ce
base within two years. That wou
make the Ashland bonds bring a III
premium within that time, and tho
now buying at par would be enabl
20 sell, II they chose, at considerat
advance, and they could hold thu
investment at per cent rate, VIII
the current municipal rate was mu
lower, IL they desired.