The Parisian. (Paris, Tenn.) 1907-1962, 1916-06-16

rental of twelve thousand five
hundred dollars for the use of
roads that should be ours clear
of all encumbrance.
Another phase of the subject,
and it is this:
If Henry county creates a
bonded debt of two hundred
and fifty thousand dollars, it
is either going to pay that
debt, or it is not.
If the bonds should be issued
for a period of twenty years,
and it is proposed to liquidate
the bonds at maturity, it will
mean that the bond issue will
carry with it the proviso that a
sinking fund will be created.
In other words, if the period
Of the bond issue will be for
twenty years, we must set aside
each year one-twentieth of the
bond issue which would be twelve
thousand five hundred dollars,
this amount to be held, presum
ably in the form of bank deposits.
To this annual sinking fund
must also be added the annual
debt of twelve thousand five
hundred dollars for interest.
In figures this matter appears
thus:
Annual Sinking Fund --- S12, 800. 90
Annual Interest on Bonds $l2, 800. 90
Total amount of sinking fund and
interest to be raised annually S25, 900, 90
Now, if the citizens of this
county are willing to assess them
selves an increased taxation
whereby they are to raise twenty.
five thousand dollars every year,
would it not be good business
proposition to spend that amount
on good roads WITHOUT putting
ourselves into the slavery of a
bonded debt?
1t is anticipated that in this
connection the point may be
raised that, if Henry county
should create a sinking fund to
be held in the form of bank
deposits, the interest which we
would receive from the banks
would gradually reduce the
amount of the sinking fund to be
provided annually.
This point may be disposed of
by the single statement that the
cost of maintenance of the roads
would more than consume the
amount that we would receive
from the banks for interest.
The foregoing is a considera.
ton of a bond issue which would
be paid at maturity, and the
figures that have been produced
speak for themselves.
Let US now suppose that the
bond issue, while nominally for
a period of twenty years, will
NOT be paid at maturity, but
would be re-issued, and presum-
ably. for the same period, if not
longer.
In other words we would be
creating a debt that would scarce
ly come short of being a perpetual
one.
Would we have a moral right
to do this?
Shall we give the burden of
bonded debts as a heritage to the
unborn?
And where would be the bust
ness sanity of creating a bond
issue that would impose a burden
of debt of interest upon this COM
munity "a debt of interest that
in amount would equal the
amount of the bond issue itself?
Would it be good business for
Henry County to pay two hundred
and fifty thousand dollars for the
use of two hundred and fifty
thousand dollars?
Of course we would have the
use of the roads during the life
of the bond issue, but would not
the twelve thousand five hundred
| dollars that we would be paying
for interest on the bonds be a
magnificent toll to pay every year
for the use of the roads?
If instead of raising the tax
rate for the purpose of paying
interest on a bonded debt we
take that increased taxation and
make good roads for ourselves,
there is no denying that in half
of twenty years-in TEN YEARS
we will have turned miles and
miles of our roads into veritable
finely piked highways.
AS a matter of fact. in the past
few years there has been a great
and very substantial improve
ment in the roads of this county.
Not only has the mileage of good
roo he Loor oooosJo~cLl,, -: