The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-04-28
LOGALBANKS.DO
NOTEAVORPLAN
TOISSUE BONDS
Zone Official Says No Notice
win Taken Of State
Treasurer's Request.

4 State depository banks in this
city have been asked in letters sent
out by State Treasurer w. s. John.
son TO urge on Governor e F. Nor.
gan a special session OF the legisla.
ture to an additional $25,000,000
2 issue OF state road bonds.
No action has been taken IN this
matter by the majority Of state de
positories here. One official stat.
ed that, so far as he knew, not one
bank had made the requested ap
peal though 1t was possible that a
few had.
3 According to the bank official
, interviewed, not all local. bankers
Z agree with Treasurer Johnson that
the present time Is propltious one
for the issuance Of road bonds. Sew.
erai conversations have been held
between the state treasurer and lc.
cal persons interested In the mat.
ster, but SO far no strong supper.
has been accorded the movement
locally.
w FalIaeies In Argument.
"There are several fallacIes in
NAfr. Johnson's argument" stated
bne bank official today. In the
first place, guessing at the bond
market is rather an uncertain prop.
osttion. Mr.. Johnson SAYS we
should take advantage Of the mar
keith which state road bonds could
be sold with AZ per cent interest
lnstead of per cent. But this ia
not assured-there is little reason
$40 beliovG that the market Is better
at present than II will be two or
three years from now.
.The road bond Issue will mean
an increase OF something like So
100000 in taxes. The present hard
~ seems like the right time for
running up the states tax bills. AMI!
< that is what It would mean as ono
can see readily II one considers
the amount necessary to cover
bond interest and the necessary
sinking fund. Tho $2,O0O,00OI
saved would not cover this
twenty-five million dollars Is
Quite q lot Of money and considers
nblegof II would have to lie idle. Al
the same time there is no assur.
ance that anything will be lost BY
8waiting two or three years for this
issue. Labor conditions may be
even better then than now.
Speaking as a banker, ! do not
fsee how Fairmont business mon or
8business men anywhere else in the
Estate can favor this proposition. II
think that the majority OF the local
Dankers are opposed to It. il not al!
of them. No meeting has been
Sealled to consider tho question and
saf one should be called ! think the[
bankers would go on record as or
Z posing the issue. In my opinion.
sfStlowever. no notice whatever will be-
taken Of the request"
johnson Gives Reason.
N To take advantage Of n market
in which state road bonds could b.
sold with A.. per cent interest r..
stead OF per cent and to Issue the
,$hondS before Congress passes an
act that would deprive them OF tax,
texempt features are the reasons
Mr.. Johnson advanced for calling .
special session in order that these
bonds might be issued as soon as
iipossible.
More than s2.OOo.0OO would b.
saved in interest alone by said Of
I bonds now under a plan outlined
by the treasurer, he declared. Sale
of $10,000,O0O ten.year bonds AMI
s15,000,00O acknowledgement bonda
5yat AZ per cent rates would mean
q saving 70 the state Of S2375,0oO
rs compared with the interest that
would be necessary II the rate were