The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1922-01-26

thing less than = TO0-mile system
could hardly be considered and that
would mean bonding Vermont 70 sia
or seven times It's grand list Sc
Aszvy . dcd; could hardy be l1atcd
unless payments were distributed over
period Of thirty yeas Or more
Bonds 81 5 per cent on > thirty year
basis means paying The principal snd
approximately 10 per cent ia interest
II the bonded debt were $4,000, O00
che total payments q principal and
interest would be SO 900 900. To pay
10 huge 3 debt would mean q heavier
burden every year for upwards Of
thirty years than would b. required TO
build 700 miles Of cement road in a
dozen or fifteen years under pay-as-
you-go policy which would have the
whole bill paid when the system was
completed. The proposal 10 bond the
state to build hard surface roads APP
pers to Is emphatieally wrong busi-
ness policy"
The Journal has heretofore called
attention 70 the misleading or defec-
tive estimates and figuring Of the an
ti-bonding advocates. The above in
the Bennington Banner Is a striking
example of incorrect figuring AS a
matter Of fact IL the State should Dor
row Sl5,00O,0O0. using $1,000 900 per
year for a permanent road system and
using the whole sum in five years, and
issue therefor thirty year bonds pay
able 100000 each year, the entire in
terest charge would be $40 025 900 and
not S1S,000,000 as stated in the Ban
ner.
If fifteen year bonds were issued,
payable 81 10000 per year, which the
Journal prefers, the interest charge
would be but S4,5O0,00O. There are
many possible variations in methods
Df financing, but no reasonable method
would call for an interest payment Of
s1S,000,000 on 30-year sl5.000,000
bond issue even at 5 per cent New
York State highway per cent bonds
are selling at premium and Vermont
,ught 10 borrow at less than 8 per cent
'or long term bonds.
The editor Of the Banner evidently
overlooked the fact that any PROPOSE |
ion for a bond issue also carries with
provision for retiring the bonds and
hat retired bonds do not bear interest. /
II seems plain TO us that it is much c
airer to the whole State to build the {
ntire system in five years and then
ave il TO use, than TO 'putter" along I
or thirty years TO do the same work a
I $500 900 per year Under this pay I
s-you-go play land it is proposed to
ay very little at that there will be n
ome part Of this system under con- S
truction and out of commission every O
ear for thirty years. Under the a
ending plan it is all done in, say, five
ears, and the remaining twenty-five +
ears we have the use of it, entire and n
fective for the State good r
The editor of the Banner asserts it Il
i'll be unfair to bond to build short il
iece of road or anything less than Il
system. How and where, "
the name Of heaven, is he going to O.
,gin his pay-as-you-go work so as to n
ease everybody? The whole State "
As got TO pay on his plan and he can Il
IT scatter his little 100000 all over
e State in little cement patches. :,
Will not the whole State be more in !,
rested and enthusiastic over a plan .,
complete a Statewide system in :,
Iort time? Then we can all enjoy the {
ads, east side, west side, north and II
nth. h,
And that terrible interest "bugaboo" =,
How about it? SUPPOSE. g we deduct :,
ON the interest on bonds what we \,
III save in maintenance, automobile IL
ID tire wear, gasoline and what we -
lin as result of better traction, -
wer truck rates, tourist traffic, and :,
st but not least what we gain in the :,
ide Of accomplishment, how much
NJ be left of the interest charge?
We have yet to see an opponent Of ~
bond issue for roads who gives the =,
opposition a square deal. We do not u
Tim TO be financial wizards, but e.
len we see that practically every =
ate in the Union but Vermont finds nl
good business to bond for roads, we u
estion those who say it is not good =
sincss for Vermont.
"The Banner is earnestly in fav- =:
or Of building 700 20 1000 miles Of =,
cement roads in Vermont and is a.
firmly convinced that the only :,
way in which II can be done IS by y.
paying the bin as we go along. -
We do not think it can possibly be -