Great Falls tribune., 1922-04-14

different public for expenditures which
the cool judgment of the average tax
payer would not recognize.
| We are inclined to look to the gov
ernment for a panacea for every ap-
1 parent i'll in our private business. Let
| it be done at public expense is the
ready answer to any project, and Off
times the promoters have direct in
terest in the benefit to be derived from
the expenditures. This attitude pro-
duces paternalism which is largely re-
sponsible Tor our many boards, COM
missions and bureaus, which aim to
regulate our daily lives and business,
and this at public expense.
NO resident of the state can ignore
his or her personal interest in this
fellow pays the tax You are con-
fronted by the cold fact that either
directly or indirectly you will pay your
portion.
State Bonded Debt S60,O0O,0 900
This state has now total bonded
Indebtedness of over $50 100000, which
means that each head of an average
family of five is carrying debt of
$3.50. which in interest alone adds
$3.50 to his annual tax bill, without
allowing for any payments on the prin-
cipal.
"A large part of this burden is in
the form of refunding bonds. which
represents bonds we did not meet when
they became due by reason of our will
full disregard of the law requiring the
providing of an adequate sinking fund
We have now in our sinking funds
little over 20 per cent of their actual
and legal requirements. In large num-
bers of cases these si~ funds have
been levied, and the money transferred
to other accounts to be used for cur
rent expenses.
Our present laws allow the board
of county commissioners to spend any
amount over their income within the
constitutional limitation of 5 per cent
of the value of the taxable property
within the county, providing they keep
items for single purposes down to
$4,000. And some of our officials are
exceeding their income every year.
When their expenditures exceed their
income, they issue registered warrants.
When the registered warrants amount
to few hundred thousand dollars,
they exchange them for refunding
bonds, and then sit back and say:
Thank God. we are again on a cash
basis seemingly not giving a thought
to the fact that they have merely post
poned the day of settlement.
I'm short. our immense bonded debt
of over S600OO,OOO is composed of:
Bonds voted by you, Mr.. Taxpayer.
for improvements that may or may not
have been necessity.
'Refunding bonds, issued on author
ity of public officials without a vote
of the people, and exchanged for bonds
which were due, but for which we had
not provided sufficient sinking funds.
"Refunding bonds, issued in the same
way. to take up warrant indebtedness |
where our past expenses were
not kept within our income.
This is a growing state. New roads |
and other new improvements will re-
quire expenditures every year. Why
not pay as we go!
Interest DoupIes Cost
"Do you realize that 20-year bond
sued for. $1O,OOO-a-mile road costs
is, in principal and interest, $4,000
4 mile before the bond is retired, and |
his in spite of the fact that the life
If this road may be only 10 years?
For the next 10 years we are in the :
position of paying for dead horse.
The remedy is up to you, as a tax
payer In this connection we might
suggest few general principles.
IF we do not pay as we 90, bond
ssues should hav- an effective amort-
zation plan to retire the bonds with
n the life Of the Improvement.
mo bonds should be issued for cur
ent expenses.
''If bond issues were paid off seri-
lily, we would save large amounts in
interest. By this we mean a portion
# the total debt should be retired
very year-say after the third year,
Is our balances in the sinking fund
My returns US 2Ha per cent, while the
'ond which the sinking fund is in
ended to retire carries or 6 per
ent.
I'VE should amend our laws so that
county, city or school district cannot
ssue bonds for any purpose without
the question to a vote of
he people. and securing the approval
+ majority Of the taxpaying voters"
Diamonds. watches, jewelry, silver
ware, clocks, cut glass. ETC., at Public
AUCTION daily, 2 to 6 p. m. Stock of
/. W. Benton, the Jeweler, 3O3 Liberty
heater Building.-Adv. B