Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-05-08

tons show $50, O00,O 900 Of property.
we viii have approximately $780,
600 Of 5 IL per cent warrant
issuing capacity. and my idea is to
handle the matter in the following
manner, to-wit:
First locate and outline the roads
to be improved. Then have adver-
tisement made for letting con-
tracts, just as we do in all other
cases, but in the plans and speci-
fications sent out TO the prospective
bidders notify such prospective
bidders that they will have TO indi-
rectly lend their credit TO the
county, however, with the fun
understanding-which will have to
&c worked out with our banks
that the contractor gets the cash
for his work just as ne has always
received ii in doing work for Cam
eron county.
We would have to arrange a
local credit capacity OF say $780,
600. We would issue the warrants
TO the contractor just as we ordi-
partly do. but the contractor in
stead Of getting his money from
the treasury. would 60 to the BANK
and execute his note and then
hand these county warrants to the
banker as collateral. He would
then receive his money 100 cents on
the dollar just like he ordinarily
does. The county must finance
the interest. otherwise we cannot
get as good contracts. No use OF
II trying TO kid ourselves or the
public that we can repeal any OF
the laws Of eco0nmics. When
100000 of these ordinary warrants
for road work have been issued.
then refund these warrants for a
period Of forty years. beginning at
the end Of the present outstand-
ing bonds. refunding the warrants
into 5 l-2 per cent refunding war
rants. and then turn these over TO
the contractor and bank upon the
return and cancellation of these
original payable on demand war
rants. The contractor would then
renew this note at the local bank
or banks and attach these refund
ing warrants as security. Then. III
the burden was too heavy for the
local bank or banks 70 handle. the
bank could 90 TO one Of the
branches Of the federal reserve
system and take the contractors
paper and re-diScount. which they
can doubtless do. and get the
money at 5 per cent.
. Would Protect Market
We would have to have a full
arrangement and understanding
wherein the banks received fair
compensation for the services rem
dered as well as for the temporary
loans.
We know that the failure Of the
Harrington water district TO con-
vert cannot always hold up the
road program. and as we issued
more bonds under the authorize
ton Of January 10Th. 1927, we
could pay off these refunding war
rants. rs by handling the matter
in this way they would not get out
on the open market but would al
ways be where we could get our
hands on them. Or. we could Just
have these notes renewed from
time to time until there was a spe-
cial session Of the legislature. at
which time we could get a special
act OF the legislature authorizing
these warrants TO be refunded in
bonds, and on such refunding we
could then sell the 5 per cent
bonds on the open market and
take care Of these debts to the
federal reserve
OF course there Is q possibility
that we might not be able to re-
fund until in January. 1881. when
the regular session OF the legisla-
ture conveneS. However, the loss
Of a half a cent interest for Just
a little over a year would be very
small compared TO the great gains
the community would receive by
reason Of the construction of the
aforesaid roads. as well as other
roads In the county: and as the
law is a great deal more liberal
for moneys received under the Is
cent statute than those under the
other law, we could from time To
time as we issued bonds under the
s 100000 authorization. repay the
fund SO that this S40O. 900 would be-
come a revolving grading and per-
manent structure fund.
How IL Can be Done
We can't build paved roads 10
every mans door. but I feel that
II Is duty to the fellow out