The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1920-11-21
CITIZENS GIVE
THEIR APPROVAL
FUNDING PLAN
Bankers and Business Men Say
Ii is a Practical Solution
of Financial Problems
CONSOLS OFFER A SAFE
AND SOUND INVESTMENT
The Consolidation of City Notes
/, and consols Scheme Meets
With Endorsement of Leading
Business Men.

The plan Of consolidating the city
notes into funding arrangement by
the useof cohsols, or in ether words
consolidation OF the city debt, is meet
ing with very hearty approval among
the business men of Brunswick gener
ally. 1t is also true that many express
sions of appreciation have been heard
for the city authorities who, after ma
ture thought, have worked out this
very feasible proposition.
The plan is very simple The city
nksrely issues these consols in sums OF
$4,000 which serves as u matte,
Of certificates of debt. They draw
seven per cent interest and are legal
tender for any obligations due to the
city. After five years the city has the
right to call in for payment the prin-
cipal and interest ON all outstanding
consols, at any interest paying date.
OF course. For the benefit of the con-
sol holders. however, it is provided
that the city must give ninety days no
tice by publication OF the intention tc
call in the unmatured paper. The
consols are al lsupplied with the us
ual interest coupon and in that particu-
lar are to be treated as any other in
terest bearing bond.
Thse city notes are held principally
hsr f1.a ho ,,-sI l..
presented through them for collection.
80 ethey will probably re requested
Z --rsncil to act as the city's fiscal
-A1~z, to substitute for the City's notes
ley may mature. like amount OF
ols.
r re is authority under the ordi-
nance. to sell the entire amount and
place the money in trust in the bank
or banks handling the transaction, in
which event, all the outstanding notes
can be recalled and the entirs amoun:
OF Coneols issued in lieu. which would
make them available for local inves
tors at once. 1t is hard to imagine q
better security for our local people
than our own City's promise to pay
While the City's floating debt, like
that Of every city in Georgia. SO far as
we aIs, informed, is in excess OF the le
gal limit. no one questions the good
faith.of cur City, or for that matter
OF any of our sister cities. Certainly
our home people would never raise the
question OF a technically
The legal phase of the plan has been
reported on by the bank attorneys and
the. City Attorney, to the effect that
they have the dignity, and the same
good faith in the city behind them, as
ths notes they represent in the consol-
idation Several prominent business
men have expressed themselves as
favoring the plan, for various reasons
The names of these gentlemen can be
had on application to this Office.
A prominent banker said, shaving
gone over the plan. | approve it as
good for the city, good for the banks
and good for our local people as an
investment if there are no legal tech
picalitiessinvolyed know this plan or
something batter if any one can sug-
gest it, is necessary to relieve the city
from troublesome situation. no mat
ter who administers it's affairs. They
must have the opportunity to gradu
ally liquidate this indebtedness, caus-
ed by war conditions and other abnor-
NAL circumstances, and we must get
our tax rate down at once. This plan
promises both.
Il may say that our bank goes to the
limit on City paper, Is we never doubt
its ultimate payment but the City has
to pay commercial rates for money;
which is too high for municipalities to-
pay and yet with the commercial de-
mand, We would prefer sometimes to
have less city paper and use our funds
for greater convenience of the com.
mercial interests. 1t would be our puf'
pose to let the local people take up
such of the Consols, as they would
wish, at cost to us.
IF plan Of popular subscription is
adopted, | will cheelfully subscribe
for my individual share or if necessary
to make it success by subscription,
am willing to take a good deal more
than my pro rata share
A public spirited citizen. in approx
ing the plan as good thing" said,