The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-08-27
THE FLOOD OF PUBLIC BONDS

I'm connection with the peDling road bond issue proposed in amend.
meut No II, an Albuquerque business man calls our attention to
that notable sermon on public finance which President Harding de-.
irered Al the budget reform meeting in Washington late in June, in
which ne said:
"There Is not a menace in the world today like that of
growing public Indebtedness and mounting public expendi-
lures There has seemingly grown up AN impress
sion that public treasures are inexhaustible, and a conviction
that no efficiency and economy are ever thought of in pub
lie expenses"
An enthusiastic advocate of good roads and of this proposed bond
issue writes u us that he Is willing to pay any amount in increased
taxes # he can bring about the elimination Of waste due 10 bad roads.
lie says that every automobile owner and every man who drives a
team over the roads loses 500 a year through breokage and lost time
due TO bad roads.
As a generality that may be true. In practical application il is
not an argument for bonding the state beyond in safe caoacitv far
bearing indebtedness. If every citizen owning an aute,usbhe or driy.
ing a team or otherwise using a road or roads were convinced OF his
annual 800 loss and would march up and pay 500 each into the state
road fund we would have far more than the amount of the proposed
bond issue. and we could afford to spend that money on road build
ing. because no financial obligation would remain 10 he carried and
later discharged. 1t would not eliminate the economic waste due to
bad roads in New Mexico, because thirty million or fifty million dol
lars wonld not serve 10 replace the bad roads of this state that arei in
general use, with good roads.
II does not follow, because we cannot build all the roads we need
that we should not try 10 build any good roads at all We should keep
financial capacity TO meet the cost and to the limit of our ability to
provide proper and continuous maintenance and upkeep Of these
roads when built. We should not go a step further. Indeed we can
not De so with safety.
When the Rio Grande valley between Pena Blanca and San Mar.
eol has been drained. its ancient irrigation canals concentrated in a
modern system aud IT'S broad and fertile acres restored TO productiy.
iy. then we can afford to build concrete roads from end to end Of the
valley and crossYseetioning it on every section line and we will do
il; the taxpayers will cheerfnlly assume the burden of the cost be
cause they will be able 10 pack that burden. Seventy 10 one hundred
millions Of dollars Of values viii have been added 10 the taxpaying
wealth of the region. There will be a basis for bonds. and a reason.
able tax rate viii produce the revenue necessary for maintenance.
That basis does not exist now IN this valley 1t does not exist else
where ia the state. We have faith that such a basis Of credit will be
sources than il is for an individual 10 spend his income a year or five
Years IN advance of earning H. That course invariably ends in dis
aster. Let us create the foundation for credit first; an ample founda-
imn upon which we can expaIgi with safety. That course is slower,
but II Is infinitely safer.
tme. An records have been eelipsed recently by the food II public
bonds whose interest is at a rate proportioning The benefit Of coupon