The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1914-03-06
AkrSG CARE OF DEBTS.

4 well known writer on economies,
tells of the securities of various kinds
that will mature this wear. lie Mon
tions N and notes of railroad conl-
panies. S3aO. 900 900: of public service
corporations. $4,000 900: OF manu-
featuring, mining and other industrial
concerns. $4,000, 900. OF other Sc
curitics Of various kinds similar 20 the
above. but not included in then, he
thinks there will be enough to bring
the total nv 4" $500 600, 600. These
are merely the obligations falling due
this wear. and which must be taken
caro- Of in some way. The writer says
that nearly all Of this great sur, ~ in
dehtedncss will he liaujdated by the
words. the erc3t business corporations
of the country have owe half a billion
dollars worth of securities maturing
this year, and they have no money
with which to meet them. The sums
which they borrowed some time s
still renaIn as debts, and new loans
will be made To carry them over for
another period.
Criticisms arc Very frequently made
Of municipal and other public bodies
because they fail TO provide mea to
meet their obligations when they fall
due. and contracts are drawn between
the alleged loosencss of financing and
the bnsiness.like practices of private
Here. however. it appears
that it !. the olnmon practice Of the
great business concerns 10 do exactly
the thing which has been condemned
in tho public bodies. namely. TO Dor
row money on bonds. and then when
the bonds fall due to- borrow money
with which tn pay them. and thu. to
mako the Indebtedness a CONTINUING
one.
Of course it is absurd TO make gem.
oral comparisons of things which may
he made UP of elements which are es.
scntially unlike. Tho cocksure critic
in this case might say either that the
frequent practice of public bodies is
good or ,hai the whole business Of
the country shows woeful ineniciency
and ~incapacity On the part Of its man.
ayers. Fut neither OF these statements
may l,c true. In one case il may he
Very poor business policy for 4 mu-
nirirali,y Ia place itself in 4. position
whore il will he obliged TO issue re-
funding bonds. and in another case
it MAJ I've the height Of business wis
dom, for a private concern TO do the
same thing In SONS cases the prac-
tice might he good for either. In
others il nigh, he bad for either.
AZ 2 general rule it is regarded az
wise and safe practice for the public
body to accumulate sufficient funds
with which TO retire its bonds during
the life of the Improvement for which
the bonds were issued. re that Is not
done q future generation is ssddled
with the cost of an Improvement from
which il has had no benefit. The fact
that this Is not done, or rather that
the obligations arc not actually re-
tired within the time stated is not
necessarily evidence of bad financing.
however. There may have been COR
responding Investments or current
funds In permanent improvements
which, will be n permanent benefit. and
which We're = necessity when they
were constructed. And so the business
.,- +. - ~,t.it~ "a No.. -..l- 49,. -.
vision for paying off It's notes. may,
while the notes We're runnins, have ac-
cu,nulated a large surplus and invest
ed it in hetterments which were to be
In all of these things figures may he
made to prove anythinE--unttl We get
the rest of the figures.