The herald-advance. (Milbank, S.D.) 1890-1922, 1915-06-04
The Sinking Fund Law
Sen. Amsden Shows the FOOlishness
Of the Charge of q Sinister Pur-
pose in the Law

" WV Sh~a ~ W - osn.SSSA -.
pose in the Law
The following communication
from Senator Amsden fully ex-
plains the purpose Of the legisla-
live act which he had introduced
and made into state law last
winter. How any reasonable
person could misconstrue the
purpose of the law and assert
that it was to increase taxation,
is an unfathOmable mystery.
Where the purpose Of the law is
SO evident, only ignorance Or du-
plicity could charge that the law
was not for a wholesome pur-
pose, and it may be made use of
by any city, township or school
district, maintaining a sinking
fund The senseless Of tn e
charge may readily be seen upon
investigation.
The old saying, "People will Talk
is indicated by the following letter
just received:
Albee, S. D., May IA. 1915.
Hon. G.. S. Amsden,
Mibank. ). ID.
| Dear friend: There is rumor cir
culating in the county that you and
myself had made promise during
the last campaign to parties interest
ed at Mi!bauk to pass such bill as
i YOU introduced in regard to the money
in the sinking fund for the purpose
| hot %bn ,,t,r mi < :
use so much more money for building
of court house. Now | think an ex-
planaton is necessary to remove
such talk, as know it was never
mentioned to me in that way.
Yours truly,
j. T. BIRCH.
Now as not only the introducer OF
Senate Bill No. IS which is the law
covering the sinking fund, but the or
lyinator of the idea, | am more than
willing to explain.
lst No such proposition as is
indicated in this letter was ever men
toned to me by any person in Mil
bank or in the county, or by me to
any person in the County or other
wise.
Ind. The electors of Grant county
voted at the last election to authorize
the issuance of bonds to the extent o.
81. 900 TO be used in the construction
Of u court house, with an authorized
, interest rate of AZ per cent.
3rd Grant county had at that time
: outstanding bonds to the amount o
+ $50 OVO which would be due in April
. 1926. drawing per cent interest, ant
!. payab at the option OF the county
! ! April 1916.
a 4th A sinking fund of 83O, 900 hat
: already been created for the paymen
Of these Old bonds and in the treasur
:, Of the county.
: Now my theory in introducing thi
l bill which became law, was. tnat D.
/ its operation Grant county could 3
, saved 5000 and if my theory wa'
:, correct and so. 900 is saved to the ia
payers of the county, the act shoul,
/ be commended rather than censured
e This is how | figured it out tn
. $50. 600 is payable after April l9l
and if sinking fund is levied to pro
duce enough money to pay the amoun
q in four wears or S. 500 per year, tn
n interest would be as follows:
, $50 900 at 4ac for | year Sl2O
So, 500 at 4ae for year 500
, Sl5 900 at 4ac for l year 500
|e 81 800 at 44c for year $50
S Total interest of bonds paid fou
. years $4,000.
!. Now YOU realize that the new bon
- issues are made for twenty years wit
4 the option OF the county to pay afte
e ten Years. So if the county paid O
= this $4,000 in April 1916, then, i
place Of selling $4,000 Of new bonds
- -. as they now have. they would hay
Il issued and sold $4,000 at AZ per Ger
interest, payable in twenty years wit
the option OF the county to pay ia te
years Now what would he the resu
supposing the county would pay til
!, $50 600 as soon as it could, ie: In te
II years, then the interest account woul
- be as follows
IS $50. 900 at AZ per cent ! year 81 ,35t
a $50. 900 at per cent ten years Sl3
a 500 m aking saving of Sl0,5jo by ir
vesting the sinking fund instead G
y paying off the $50, 100 old bonds bea
IN ing 4 per cent interest, in Apri! 1917
and issuing and selling $75. .o0O of ne
:. an option of paying same in te
- years, at ! u per cent interest.
~ The county commissioners only sol
10 S45, 900 of bonds and applied $500
~ of sinking fund which just equals tt
S75, coo authorized by the electors
- the county, SO you see there is nothin
to the rumor above referred to, and
ne wish to say that by creating s, 81
NJ per year to pay off this $50 900 II
= rate Of levy will not be any larg.
~ than ii has been In the last four yeal
e. for siok ng fund purposes.
re [ hope | have made this pla
,n enough that no fair minded persc
will harbor any such idea as is man
g tested in MIR. Birchess 5 letter.
Very Respectfully
G.. S. AMsDEN