Show mortgaging ag ing the future issuance of 0 tax exempt bonds by states and municipalities continues at terrific pace the high tax problem within states cities and counties is due largely to bond issues which are exempt from all federal state and city taxes they make an ideal investment tor for the rich who are enabled to evade taxes while depriving industrial channels of necessary money the year 1924 set a new record for or this form of 0 financing bond issues floated by states counties cities towns and districts to finance tho the building of public improvements aggregate not less than for the year this figure includes the loans of territorial and insular possessions of the united states in addition there was raised through the placing of 0 temporary loans a total of 0 january 1 1925 the total outstanding amount of american state and municipal bonds held by the public was said to be approximately or about five sixths sixtus of tile the lully fully tax exempt securities in existence it was expected that there would be a sharp reduction in the volume of new loans of 0 this character in 1924 but instead the borrowing was on a larger scale than ever the orgy of 0 spending on the part of state county and municipal officials has increased from year to year ever since the war in some sections it has abated but the ease with which these officials are able to place tax exempt bonds on the market and the demand for or them on the part of 0 investment bankers has been too great a temptation and so prodigal politicians have gone on spending the peoples money right and lett left and putting them in debt through bond issues that will take generations to pay off it Is time the federal government made these bonds less si attractive by taking them out 0 of the tax exempt class it Is too late tor voters to undo what has becil been done inthe in the mat matter ter of bonding their states I 1 and cities but they can nt at least prevent further furtherer extravagant trava gant spending and insist that men in office begin saving to meet the bond issues as they become due |