Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1923-01-12

support of all political parties, re-
sulting in the greatest majority ever
, given any candidate in the history of
New York, said in his inaugural adj
dress on January /, 1928:
1T has not been demonstrated to
my satisfaction that highways should
be built from the proceeds of bond
issues. In any circumstances they
are of so temporary a nature that the
cost of building and maintaing them
should be met from the current reVe-
nues of the state. Experience has
shown that many roads in the state
have been rebuilt three or four times
during the life of the bonds that were
issued for their original cOnStruc-
ton"
Large Sums Not Expended AS Eco
nOmically As Orderly Receipts.
Even concrete roads are not perma-
nent; only the grading of any road is
permanent.
The unwiSdom of issuing long term
bonds for the construction of roads
that will wear out before the bonds
can be paid is obvious. This condi-
ton exists in many counties in Vir-
ginia today. Plans for road develop
ment are constantly changing and
hope improving. The history of all
tpublic expenditures shows that large
sums of public funds expended in a
brief period do not obtain the eco
nomical results of orderly and regu-
/ lar expenditures from taxation that
can be relied upon from month to
month. The gasoline tax is received
monthly and can be anticipated in
letting contracts. 1t is the only tax
collected from the source practically
without cost. 1t can be increased or
decreased at will to meet changin g
conditions. 1t will automatically
increase as roads are built. It is COM
paratively recent source of revenue
and therefore has not been utilized by
states in obtaining road funds as
largely as predict it will be in the
future. It is a substitute for toll
without the inconvenience and cost of
the toll system. After all the toll sys-
tenn is the fairest and most equitable
method of road construction and main
tence. as those who use the roads pay
the cost. If the bond plan of financ-
ing is adopted with the constant de-
mand. for road construction, what
assurance can be given that bond is
sues once begun would be reasonable,
and that Virginia would not suffer
the same experience as other states
who have issued inordinate bonds in
response to demands from every sec
ton of their states and then the roads
have worn out before the bonds are
paid. Neither can any assurance be
given that bonds will be paid at ma
turity. Subsequent legislatures can re-
fund any maturing issues. Virginia has
already an example of the evils of
bonded indebtedness for non-perma-
nent improvement. On an original
bond issue of some thirty odd million
dollars, interest at per cent to the
extent of S100,000,000 will be paid be-
fore retirement. The last bond under
the present plan will be retired in
1991-one hundred and sixty-eight
years after the first bond was issued.
The interest paid is only 8 per cent
while now 1-2 per cent interest must
be paid. These bonds are chiefly for
canals and roads long since worn out
The same arguments and the same
promises for early retirement were
doubtless made then as are being
made now. Would it not be the part
of wisdom for Virginia to pay the
$21 ,641, JOY of bonds she now owes be
fore embarking on a road program
which may add s100,0O0,OO0 to this ex-
listing debt?
Millions expended for interest will
depfettee the the funds for the roads