The County's $75,000 Gamble
Yakima County proposes a major bond issuance to clear floating debt and modernize public financing.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
On Tuesday, Sept. 6, a county election will be held for the purpose of determining whether or not the county shall issue bonds not to exceed $75,000 to procure money for strictly county purposes. At present there is outstanding a floating indebtedness of about $40,000 in warrants which draw ten per cent interest and which are subject to a discount of from five to ten per cent when cashed by money exchangers, thereby resulting in a heavy loss to the taxpayers. The object of the election is to ratify the action of the county commissioners who have agreed upon the terms of sale of $75,000 worth of 6 per cent bonds at a premium of $1,400. This sale will place the county on a cash basis, and by reducing interest, enable the commissioners to start a sinking fund for the redemption of the bonds. Our county is now growing rapidly; investors are coming in from all sides; the price of farming lands is advancing, and the assessed valuations are increasing so rapidly as likely to be doubled in a couple of years. While improvements will be required for the newly developed sections, the increase in valuations will more than offset this and taxation is sure to decrease.
“In fact it is a question whether the county shall pay its bills with a currency worth but 90 to 95 per cent and lose money on the transaction or pay dollar for dollar and save money.”
Public debt financing was as contentious in 1892 as it is today. While the specific mechanism of 'warrants' has shifted to modern municipal bonds, the debate over using debt to fuel growth in a rapidly expanding valley remains a staple of Yakima politics.
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