Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-08-21

While the Register has its coat OF
| 1t wishes to say few words q bout
the hue and cry that has been raised
against bonds as means of providing
the means FOR important public i'm
proTements
For year now the state has beer
invaded with lot Of silly talk about
bonds that ought not to deceive any.
body not candidate for the Glen
wood hospital, and yet the talk has
been taken seriously.
Mr.. Meredith was right at Oakland
when he said that the state at It's pres
ent rate of taxation could care for road
improvement without bonds. Iowa il
being, taxed higher for roads than any
good roads state but two, New York
and California. Why should we not
have at least as good roads as Ohio, or
Wisconsin, or Minnesota without Is
suing bonds?
But that has nothing TO do with the
general proposition, and it is time that
we faced e the general proposition
squarely. For we are issuing bonds all
the time, and because we do not set
about it deliberately we are issuing
them In the most haphazard, unmeth-
odical way possible and we are piling
up an enormous burden Of debt with
out providing any means of extin-
gushing it.
Every man who has ever done any
thing has issued bonds. He has mort
gagged his future, where he did not
have land to mortgage, and taken the
big chance. If man could not an
ticipate his earnings he would never
set beyond first base. Bonds are the
oldest resort of progressive civiliza-
ton, the ancient Assyrians had the
mortgage Just as we have 1t.
When the question was up In the
early days of the Wilson administra-
ton of financing South America, to en-
courage friendly trade relations, Mr..
Bryan proposed that the government
issue 3Hper cent bond, and give the
money to South America at per cent,
the extra 1 per cent to go to the ex-
tinguishment Of the debt. The National
City Bank of New York City said it
was the most bus'inesslike suggestion
that had been made
The most sensible suggestion that
was ever made in this road matter
was the issuance of 3 per cent bonds
by the, general government, the local
community 10 pay or 5 per cent for
the money, the deb1 thus to be extin-
,guished within the life Of the improves
ment. And next to this the most SEN
sible suggestion has been the issuance
OF bonds by the state at 81 or 4 per
cent, the local community to take the
money at per cent, the margin Of diff
ference, again to .ext!nguish the debt.
Let the Register briefly outline an
ideal bonding system as the Canadian
city Of Calgary has it. No matter what
the public improvements Calgary issues
bonds to pay for 1t. The life of the
Improvement is estimated officially
and the bonds are made to run for that
number of years. Each year an even
part OF the bonded debt Is provided for
in taxes. The money so paid in Is
turned over to city finapciali departs
ment and is loaned out on approved
security to the people at the curren.
rate At the end OF the period the
bonds are paid off. Calgary gets its
money at per cent, and loans5 the
annual installments paid in at per
cent The difference takes up a cons
siderable part Of the cost Of the i'm
provement.
When the Register last had occasion
to investigate the tax rate In CaigarS
1t was "a mills on a valuation some