The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-07-18
TROUBLE WAS SERIAL BONDS

AcPooS VI DultdS lo / una thR lint
standing Indebtedness.
TROUBLE WAS SERIAL BONDS
During the latter part of last win
ter and this spring, the taxpavers of
this county have heard great deal
about the proposed funding bond is
sue. ,.pro and con.
Sheridan county, Montana, thanks
to the experienced management of
Faithful Frank Weinrich of Mondak
and James F. Redmond, erstwhile
auditor, is practically bankrupt; bank
rupt by reason of the most profipate
and wanton wasting of the PEOPLES
money ever witnessed any where by
any one. The county, after spending
the years taxes of about $500 900,
plunged 100000 more into debt.
The Commissioners found them
selves in bad mess. The County
warrants had gone to big discount.
and the prospects for being able to
catch up and retire the warrants
were not very promising, unless all
work in the county ceased. Some
thing had to be done.
There was nothing else to do, but
to fund the warrants All of the
banks were agreed on this.
The County Commissioners asked
for propositions. After a lot of
Jockeying, proposition was finally
accepted.
There was only one banker that
appeared before the County Board
that knew what funding bond is and
who was familiar with the procedure
required by law for issuing funding
bonds-that man is C. J. Beiseker of
the Sheridan County State Bank; the
latter procedure proves this state
ment.
The Sheridan County State Bank
offered per cent twenty year bond
proposition or higher rate for a
serial: ]. W. Mckee of the First
National offered a proposition of a
Dab per cent, 20-year bond on $780,
900, and 5A per cent, 20-year bond
on a 100000, offering a bonus of
$1,000 with deductions and strings.
Beiseker's propositions were the best
propositions and were accepted by the
Board OF. County Commissioners.
The figures presented below are to
show that 6 per cent serial bond,
is better for the farmers than )
per cent 20 year bond, it must be
granted that per cent serial is
better than 5A or a 512 or 5.45c
per cent, 20-year bond. 4
1t will be observed that the interN
est on a straight 20-year, per cent
bond will amount to $4,000 per year,
and that the interest for 20 years
will amount to 20 times $4,000 or
just 100000. Then 100000, minus
$4,000, (the cost of a 6 per cent
seriaD, leaves $48,O0O, or the amount
more which it costs the taxpayers for
20-year, per cent bond, than it
cost for a 20-year serial 6 per cent
bond.
It will be argued correctly, that
the sinking fund money, deposited IN
the banks, will bear an interest OF
21a per cent for the county, which
is correct if it is collected. 212 per
cent on the sinking fund as it is de
posted $4,000 at a time year by
year, will bring the county the sum
of SAT 500, which sum will be covered
into the general fund each year, and
therefore does not effect the sinking
fund and interest levy Of $4,000 per
year. Subtracting SAT 800 from S4o-
900 leaves $5O0.0O or in other words
the 6 per cent serial bond is still $500
cheaper than the 20 year ) per cent
bond, after the 213 per cent interest
which the county would receive from
the deposits of the sinking fund.- IS
figured out.
Raised For Raised tor
Sinking Fund Interest
Int. at 2i2',
fv-.-.-. pas,l~z