City Hall Debates Paying Workers in Scrip
Facing a cash crunch, Seattle city officials consider paying for sewer infrastructure with IOUs that workers might have to sell at a discount.
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.
Alderman Jordan introduced an ordinance providing for the construction of the Front street sewer by paying in warrants drawn against the proceeds of the bonds, the warrants to bear 5 per cent interest. Alderman Carle asked to have it referred in order to afford time for investigation. He was familiar with the sewer project but not the issue of scrip. He feared laborers would have to sell the warrants at a discount. Mayor Ronald addressed the board, stating that ex-Superintendent of Sewers Smith was prepared to take a contract for building the sewer, accepting the warrants in payment and paying for labor in cash. The mayor believed the scrip could be sold at a discount of 75 cents on the dollar, and when the money market is easier the bonds can be readily sold.
“He feared laborers would have to sell the warrants at a discount.”
The struggle to fund public infrastructure is a century-old Seattle theme. The fear of laborers being stiffed or forced to 'sell' their wages at a discount in exchange for immediate cash is a recurring dynamic in the history of labor and municipal finance.
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.