The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-08-12
NEWSPAPERS OPINIONS
FIRST IN DEFAULTS

North Carolina has a habit of turning m first
his time it is first of which we are no ...ord
She leads all the states of the Union both in num-
her of counties and in number of cities and towns
in default on their bond issues
The June 1888 issue of the National Municipal
Review carries table giving a summary of state
and municipal defaults, rs of May 1888, report
ed to the Bond Buyer The table reports forty
three North Carolina counties as being in default.
Florida, Tennessee, Kentuck.i and Texas are the
only other states with any considerable number Of
counties in default. For all the states ."tai go.
1913 counties are reported as being in default. This
means that more than one-ifth of all defaUltirC
counties in the United States are in North Caro-
lima
This table reports exactly one hundred North
Carolina cities and towns in default, which is
siderably the largest number in any state Other
states that rank high in defaultng cities and towns
are Florida Ohio, Texas Oregon, Oklahoma, and
Michigan. More than onc-fourth of all the cities
and towns reported in default on their bond issues
are located in North Carolina
In addition there arc six school districts and
two drainage districts reported in default. This
gives a grand total of Isl taxing districts in North
Carolina reported in default, the largest total
number in any state Florida comes next with 139
No other state is near these two in this respect
The total of all taxing districts in the United
States reported in default is 1905 Thus more than
one-seventh of all defaultng districts in the United
States are in North Carolina.
We do not profess to know the seriousness of
the North Carolina defaults 1t may be that most
Of them are temporary, resulting from current tax
difficulties, and that in time the bond holders will
be paid in full. We know from offerings that local
bonds are being offered at bargain prices, which
may mean that present holders are skeptcal 1t is
reasonable to believe that our entire Indebtedness
in time will be paid in full
But whether the situation is real or apparent
1t Is fact that North Carolina counties cities and
towns head the parade of defaulters This may
have much to do with the high interest rates our
state government is now having to pay for bor-
rowed funds although the state is meeting it's debt
obligations.
The difficulties hes largely in the failure of a
large percent of those against whom taxes have
been assessed to pay their taxes The recent lem
iency the part of the legislature towards those
who have not paid their taxes is not calculated to
encourage prompt payment in the future, although
the measure may have been, practically, a wise
one. Why pay promptly if there is a chance of a
discount in case one becomes delinquent or why
pay at all if one hold on long enough and final
1y have his back txaes wiped off the books?
The vOluminous discussion of the burden of
property taxes in North Carolina in spite of the
fact that the property tax in this state averages
the lowest of any state in the Union plus the gen.
crosby of the legislature towards delinquents and
complete forgiveness to those who have refused To
pay over a period of years, are not conducive to
the payment of taxes If taxes are not paid cur
rent operations must be curtailed and debt obliga
tonS will go unpaid. 1t might be pertinen. 10 ash
If so-called Taxpayers Leagues are composed Of
taxpayers or nOn-taxpayers? Favors have gone t.
the latter.
We appreciate the fact that there are those whc
would prefer not to discuss our defaults. We Sc,
no point In trying to hide the facts. North Caro-
hnisns may not be aware of the situation that ex
lists, and good may result from knowing the facts
Those who hold the bonds and the financial purs,
strings know the facts. That is why the interes
rate to North Carolina is so high.-The Uuiversit,
News Letter.