Newport’s Financial Crisis

Local banks are discounting town warrants five per cent, and are not exceedingly anxious to take them at that. The bankers state that they are unable to place these warrants in Spokane at less than a ten per cent discount. The matter of discounting town warrants presents a rather serious aspect at this time as warrants have just been issued to the local saloonmen for the amount due them on license refund. The saloonmen refuse to accept the warrants and are demanding cash or warrants that will be cashed at par. As the city seems unable to provide such warrants it is probable that suits may be started against it by the saloonmen, and more costs piled up. One of the reasons given for the poor standing of the town warrants is the suit against the city for payment of the Carter springs warrants. Two years ago the city purchased springs located in Idaho from C. A. Carter, paying him $1600 for same. Warrants for this sum were duly issued, registered and marked 'not paid for want of funds.' A suit was started to enjoin the city from paying these warrants, now in the hands of the First National Bank of this city, and the matter is still in the courts. The fear of an order requiring the city to pay these warrants, which would give them preference over all others, has depressed the value of all warrants.