Salt Lake Telegram | 1925-10-31 | Page 7 | Mortgaging the Future

the Future J 4 i Mortgaging Jt t T l ISSUANCE of tax exempt bonds by states and 1 t and municipalities contin continues es at terrific p pace e. e t The high tax problem within states cities r and co counties un ties is due largely to bond issues federal state and which are exempt from all city itS taxes They make an ideal investment for the rich who are re enabled d to evade taxes depriving industrial channels of necessary necessary sary ary money 1 f The year 1924 set a new record for this form of financing Bond issues floated by F f states tates counties cities towns and districts to finance the building of f public improvements aggregate riot not less th than n S 1 for forthe the year This figure includes the loans of olf territorial and insular possessions of the United States In lii addition there was raised through the e placing of temporary loans a total of January 1 1925 the total outstanding f. f amount of American state and nd municipal bonds held by the public was said to be approximately approximately approximately S 1 t or about sixths five-sixths of the fully tax-exempt tax securities in existence It was expected that there would be a sharp reduction in the volume of new loans of this character in 1924 but instead the borrowing was on a larger scale than ever The orgy of spending on the part of state county and municipal officials has in increased increased in- in creased from year to year ever since the war var In some sections it has abated but the ease with which these officials are able to place tax-exempt tax bonds on the market and the demand demand demand de de- de- de mand for them on the part of investment bankers has been too great a temptation and so prodigal politicians have nave gone on spending the peoples people's money right and left and putting them thorn in debt through bond issues that will wiIl take t ke generations to pay payoff off i It is time the federal government made the these bonds less at attractive by taking them out of f the tax-exempt tax class It It is too late for voters to undo what has been done in the them m matter of bonding their states and cities but they can at least prevent further extravagant spending and insi insist t that men in office begin saving ving to meet the bond Ond issues as they bec become become be be- c come me due