The Parisian. (Paris, Tenn.) 1907-1962, 1916-06-16
Peoples Forum
GOOD ROADS WITHOUTA BOND
ISSUE


as to whether Henry county
should issue bonds for road i'm
provement does not involve any
controversy as to the necessity
for good roads. Upon this latter
phase of the subject there is no
diversity of opinion.
But there is a Wide-a very
wide difference of opinion, as to
whether good roads are to be
obtained with bond issue or
WITHOUT a bond issue,
In this connection | may state
that | have sought the opportu-
nifty, and wherever possible, of
ascertaining the expression of
sentiment of the public upon this
question. | have talked with
those who are in the ranks of the
various classes, and who may be
regarded as fairly representing
the thought of this community:
and the result Of this has been
that there is strong evidence of a
great preponderance of senti-
ment AGAINST the bond issue.
There is always an insidious
and delusive feature about the
issuance of bonds for any public
purpose, for as matter of fact,
it is always easier to create a
debt than to pay it. 1t must,
therefore, not be forgotten that
if Henry county creates a bond
issue of two hundred and fifty
thousand dollars, it also creates
a debt of two hundred and fifty
thousand dollars.
Another fact: and one to which
there cannot be given too much
emphasis, and it is this:
A bonded debt is a blanket
mortgage upon all the prop
erty of a community that
creates that debt. Much of
the property in Henry coun-
ty is owned clear of all
encumbrance for private
debt, shall we, therefore,
make a bond issue which
would actually place US all
under a mortgage obligation
for the payment of a public
debt?
Again! Since it is proposed to
make the bond issue for period
of twenty years, and at an inter-
est rate Of five per cent per
annum, it would mean a yearly
Indebtedness of twelve thousand
five hundred dollars for interest
alone. 1t will therefore be seen
that, since the bond issue would
cover a period of twenty years,
we would have paid FOR IN
TEREST ALONE two hundred
and fifty thousand dollars which
is precisely the amount of the
bond issue itself.
Expressed in figures the mat
ter appears thus:
Amount of bond issue $3.50, 900
Interest at five per cent for
twenty years -----.---------2 50, 900
Total amount of bonds and ------
interest $500, 900
Here is where our arithmetic
shows forth to an advantage!
A debt of half a million of
dollars even though it, extends
over a period of twenty years,
means something to a community
of taxpayers many of whom do
not make one dollar a day.
And to the farmers who do
the toilsome task of raising a
crop of cotton, and then lay it
upon the market for the piuiful
price of three cents a pound, or
less, it is a serious problem of
putting upon their necks the
CALLING yoke of a bond issue.
1t is quite true that what we
would receive in cash for the
issuance of bonds would be
ready cash in hand, and that
would be made Immediately
operative, but it should also be
remembered that for this privi-
lege we must pay annually to the
holders of the bonds the sum of
twelve thousand five hundred
dollars, and this yearly indebt-
edness would continue until the
bonds are paid.
Henry County does not have,
nor will it ever have, a surplus
of twelve thousand five hundred
dollars which it could pay an
nually as a tribute to the bond
holding class.
If we were to be taxed to
raise the sum of twelve thousand
five hundred dollars merely to
pay an annual debt of interest
on our bonds, why not put this
amount upon our roads every
year WITHOUT a bonded debt!
Whatever arguments may be
offered as to the advantages of