Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-06-30
DEMANDING LOWER INTEREST RATES.

! tneSe Years VI lHe lWcHlicIH SShNuAS'
! DEMANDING LOWER INTEREST RATES.
Somebody is promoting Farmers
Protective Associations which meet,
listen to an address from compare
tive stranger and then adopt resolu-
tions without investigating the pro-
moter, his purposes or his statements.
| Up at Cresco. in Howard county, such
a promoter was caught in the act OF
deliberately falsefying regarding the
state highway commission and an as
sistant state highway engineer was on
and documentary evidence to prove
the falsity OF the promoters state
ments so of recent date the resolutions
have been of more mild and general
nature, the promoters evidently not
caring to stir up any more gentlemen
armed with the facts, but a resolution
was adopted by such an association in
Hardin county recently which is
worthy of more than passing consid-
Grafton.
The farmers demand that the rate
OF interest on drainage bonds and
other improvement certificates be ma
! terially reduced and that said bonds be
opened for public bidding"
So read one of the leading
paragraphs and, of course. every
farmer can afford to subscribe to it
but what good will it do farmer or
anybody else to demand" lower rates
of interest? Demanding by resolution
, will not change interest rates. The
and find out how to obtain lower rates
Of interest. That is what the better
roads committee recently appointed by
Governor Clarke has done and it has
led them to the conclusion that If
bonds were issued as the full obliga-
ton of the county they would sell at
do when they are merely tax liens up
on property within the boundaries Of a
drainage or road improvement dis
trict. e
II the state Of Minnesota drainage
bonds are issued by the counties and
they sell for lower rates Of interest
than district bonds will sell in Iowa.
The taxes are levied upon the lands
within the district and the county pays
the bonds out of those special assess
ments but the money loaner looks to
the whole county for his security.
In Texas. Missouri and many other
states roads are cut to grade. graveled,
macadamized or paved with cheap
bond money obtained from county
bonds sold at very low rates Of inter-
est while the taxes or special assess
ments levied are confined to special
Improvement district. In this way the
bonds are sold in the cheapest money
market while the taxes from which
they are paid fall upon the property
| of town and county most benefited by
the road improvements.
In Iowa cities the same waste OF
archaic finance goes on in all our city
pavement work. Certificates are
offered the contractors against lots
assessed for the improvement. They
bear per cent interest, but because
thew have no standing in the BOND
markets they are discounted by the
contractor to local banks at anywhere
from to 10 per cent interest. In other
states city paving bonds are sold at
: S and per cent rates OF interest
and the city government pays the
bonds out of the special assessments.
In Iowa the contractor includes ms
higher rate of interest in his costs ana
adds it to his bid while in other states
he knows where he can dispose OF paw
ing bonds in open market or the city
sells it's paving bonds and buys paw
ing for cash just as we buy scnool
houses for cash in this state ana get
the cash from the sale OF bonds.
r. more farmers would listen to re-
sponsible and experienced business
men selected by q governor to tnVesti-
gate some Of our problems OF puoi'
finance and would lend less aid to oe-
signing politicians or tricksters VINO
seek to capitalize prejudice we wouio
! obtain lower rates Of interest on our
dr.;,.oe bonds and we could build
some fine roads without increasing
anybodys tax.