Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1934-12-13
Bankers Promise
Aid For County
To Solve Deficit
Conference Is Held AT Rockville
To Work Out Reported Finan-
cial Situation

Cooperation and support of Mont
gomery County banks in the new
administrators efforts to cope with
the reported deficit of nearly half
million dollars in county funds
was pledged in the conference be-
tween bank officials and county COM
missioners at the court house Tues
day night.
Three banks holding approximately
$155,OOO in short-run street assess
ment certificates of indebtedness as
sured members of the county board
they would continue to renew tha
certificates until Montgomery's finan-
cial condition permitted the board to
retire them.
Assurance was given after it was
pointed out that the deficit in the
fund to meet operating expenses and
obligations coming due this year
amounted to SASS, 454.S7, but that the
principal problem confronting tho
commissioners is the renewal Of the
certificates of indebtedness.
It was said that the remainder OF
the fund needed to meet the defcie
would BE- raised through the sale of
$300, 900 in emergency certificates Of
indebtedness which the State Legis-
lature authorized in 1888, but which
never have been disposed of. The
Icertifcates,. the bankers were told,
can be sold on q five-year basis.
Members Of the group Of some 80
bank officials who attended the con-
ference told the commissioners the
county could affect saving in the
payment of interest on the street
assessment certificates now held by
the Takoma Park Bank, the Silver
Spring National Bank and the Bank
of Bethesda by converting them into
10-year bonds.
The interest rate on the bonds,
they pointed out, would be only A
or Az per cent, whereas the county
at the present time is paying a 9
per cent rate of interest on the GER
tificates.
, Officials representing other county
banks told the board that should the
three banks now holding the street
assessment certificates find they are
unable to carry them, their institu-
tons would be willing to take them
off the hands of the banks in which
they rate at present.
The board took no formal action
on any of the matters which were
discussed, but it is expected that
renewal of the certificates Of in
debtedness or their transfer into 10
year bonds will be carried out by the
commissioners at one Of their regular
sessions in the near future.
1t was expected that the commits
sioners would select an accounting
firm at its regular meeting Tuesday
afternoon to audit certain Of the
county's account in an effort to de-
termine the cause of the reported
deficit. Action was deferred until
next Tuesday, however, to permit the
board to consult additional firms
regarding cost of the audit and other
details.
The commissioners accepted the
resignation of three county employees
appointed by the Democratic organi-
zation during it's reign at the head
of administrative affairs. They were
submitted by Mrs. Nettie Hatch, act
ing secretary to Commissioner Paul
Coughlan; Miss Rebecca Wire, ste
lnographer in the commissioners
office here, and Miss Lucille Kessler,
clerk in the office Of Police Court
Clerk Frank Davis. All resigned to
accept other positions.
The board appointed Byron M.
Sedgewick of Silver Spring to fill the
vacancy caused by Mrs. Hatch's resig-
nation. The other places we're left
vacant for the present.
1t was announced by the board
that it will attend the meeting Of
the County Commissioners Associa-
ton at Annapolis December 20, and
that no session of the local board
will be held that day.
A request from representatives Of
covering Montgomery
County activities that they b al
lowed to attend sessions Of the board
was unanimously annrovad