The Nonpartisan Leader Newspaper, November 4, 1915, Page 7

THE NONPARTISAN LEADER How the Public Debt Keeps Piling Higher ‘The shadow of public debt lies like a pall over the various units of gov- ernment in the United States.. The study of pubhc finance especially tax- ation, debt and interest, is being prosecuted as never before at the ex- pense, and under- the guidance, of state governments. The average cit- izen teday is meore vitally interested in taxation, public expenditures, debt and interest that he is in tariff, civil service reform or almost any other public question. ‘Even a casuafisurve;v of conditions | througheut the United States con- vinces the most optimistic that this study and discussion is timely. Marvelous Increase in Debt Public debt has greatly inereased in all parts of the United States during the past ten years. Twenty vear ago New York state had no bonded debt. and yet today it amounts to $108,000,000. In 1902 the national debt was $969,4:7,241, while nine years later it had increased to $1:015;784,338. From statisties -com- pited. by. the Census. Bureau, we find that in 1902 the debt of one hundred and forty-six cities in the United States, having a population of ‘30,000 or more, was $900,178,161, while nine yeers later;, it had increased 100 per cent., aggregating $1,808,129,085. In 1902 the City of New York had a debt of $276,583,442. Today it is greater than the National debt, :reach- ing the grand total of $1,300,¢00,000;|~ an increase of more than 350+ per cent. The per capita debt of these 146 American cities in nine years in- creased from $44.19 to $67.31, or 52 per cent. North Daketa in Line -~ In 1905 the bonded indebtedness, of the counties of North Dako,t:ai_‘wa.s little larger than at statehood,, while By Franklin H. Powero nwore than 160 per cent. On the county debt we have paid-in interest, :since: statehood, more than three mil- lion of dollars, while on the school debt the interest charges have been ¢ 0,000. { Paid- Out: Mack Interest i The state debt never reaches the million and a quarter mark and yet: we have paid on it a million dollars in interest, besides almost $550,000 on the principal and we have $500,000 of it left: There are no general statistics of North Dakota citiez, but from data gathered by the Tax Commission, it appears that the city debt of the state exceeds $4,500,00 and is growing with alarming rapidity. . The total debt of North Dakota exeeeds. $15,000,000 and the interest charge aggregates nearly a million dollars annually. Turning again to those-one hundred end: forty-six American cities: with a population of 30,00 Oor more, we found: the per capita city debt in 1911 to be $67.31; the Federal per capita debt was $10.83 and the state, county, school and township per cap- ita- not: to exceed $14.00, making a total per capita debt in those cities. of $92.14. At the close of our great Civil war, August 31, 1865, the per capita National, state, city and local was $79:44. .. ., Grand Forks and Fargo Take our two largest cities, Fargo and:; Grand Forks. Fargo has a total q;ebg_; of '$1,205,576.78. This includes the bonded debt of city, school dis- tnct and the park board and speeial rovement warrants. Since 1881 thn; c:ty has: paid in-interest on debt Q9#18\864 10. The current interest _charges is $74,483.83. This brings the per ‘capita‘ city debt up to $73.77. Add “to this the state, county and . In 1904. the indebtedness it: has. increased from 31’5094380 at: fedeeal debt: and’ we get $8642 or that time to- mowve: than $4;300,000;|seyen deMars.more than the total: per an increase of almost. 200 per gent.|capita.debt at: the close of the Civil of _thejwar,, school districts of the state was not- s q:;and Forks aas a total debt of quite two million dollars, wlule: to-|'$1,648,088.42" of: which' there is a cur- day it: is. but: a- little short; of: five (remt interest: charge of $89,638:67. ‘and a half millions ,an increase: of:f{Thes per: capita: city: debt: is $127.50; S & ers.Get Cruel Treat- ment at Hand of. . - ‘Pathetic: stories-of' the lives of: girls: who. gain:a: precarious: livelihood in the garment trade were told today bafore the aldermaaic committee in- véstigati}'ng’ the garment workers’ strike.. ‘Manufacturers ignored invi- tations to- be present: Tears come to the eyes of some of the girls as they told of their strug- normal | gles for existence. Their earnings, testimany showed, were- $3 a week, and only supreme efforts, working from daylight to dark with- out lumch would bring in $8.00. Sidney Hillman, national head of the Garment Workers’ Union, exs[: - plained: that: in the- “better: sheps” girls: received: $12' a: \&eek for sum work: : Seventy-eight Gents a Week 7 Pearl. Krupnik said that 'in dull times she had earned’ as*low as 78{} cents-a: weeki. Fantie Berg testified | that the: girls Fave:to Buy their: owni needles: Three hundred: girls, she said, had to use the same roller tow- | el. Alderman Healy called the atten- tion of the health department- to[ this. Miss Berg said that she worked from. 7:30 a. m. to 6:45 p. m. and;thay she and thirteen other girls engaged: on bastings were able to mak week by gwing up. hulf of the hour to; work: = ATl of:: o “their '%o’mplamed of harsh treatment from foremen, mostly in the way of "abus- vé language: ! Alderan: Geiger was: curious to: Jeaxn how the girls managed: to live incomes. Miss Berg ex- ained: “I pay $5 a month for my room and’ my sister charges me 15 I' am often hungry; 'but: I' caw’t: afford to spend more:"” | “What: have you: and the others: been doing since you went on s,tri e?”” Ann Javorowsky was asked. "‘Going around beating up scabs,” lshe calmly replied: 4 “Did: you ever beat up one your- self?” "‘Yes‘ I beat up one.” “Did any one ever tell you to do that" Did- you receive instructions from headquarters to do that?” | “No; no one ever told-me. I knew: ‘enough to. do that without being teld.” i Work 13% Hours a Day iF: _Grace Gross: told of an alleged: sys- ‘for evading the ten-hour law. ”Imtqwomka.ta,h.\tl am not. 'supposed to punch the:timeclock un- il.7:30,” she said. B‘essie, Alt, who earns $1 a week, d- that' she keeps: within her- in- by walking two miles to. ,fx:om work,. and spending. only. 25 jgents-a day for food. Miss Alt was|: ked if" any forema': hade 1mpa:oper f vances- to. her. iout: withi him,” 'answered. the: witness. H"If tboy did they were better treat- “.li " “Better paid?” asked: Alderman | talk and too little action. “Some- of' the- girls told: me that| the foreman had asked: them to. go|’ Add to this the state, county and federal per capita debt and we get $147.15, or $67.69 more than the per capita debt at the close of the Civil war. There can be no question but that school districts, counties and cities in Nort Dakota are rushing into debt with a headlong impetuosity. - In some localities the situation is ser- ious and in every quarter of the state is grave enough to demand the at- tention of the thoughtful citizen. North Dakota’s Shame While this is no doubt in part due to the fact that we are yet a pioneer state and doing pioneer building, yet it is probable that the fever of high finance has influenced the minds of the prople in public as well as pn- vate affairs. It is ridiculous Tor the State of North Dakota to be loaning money to municipal sub-divisions of govern- ment at 4 per cent, when -Great Brit- ain and France are paying 5% per cent on their national bonds; for North Dakota to loan money on in- ferior securities at 4 per cent when New York City, New York State, Al- berta, Louisiana and scores of great municipalities and state and provine- es are paying 4% and 5 per cent on better securities; for a farmer in North Dakota to pay from six to eight per cent on a first farm mort- gage on from forty fo fifty per cent of the actual value of his farm,.-when a debt ridden city, village, township or county can borrow from the state for 4 per cent. Why should the farmer be. penalized? good question for: the- business ad- ministration. Rank In ustice. to Schools. It is rank injustice to the public schools. Why should we robr the pub- lie- scheols- 6f! the: state to emcow cities: to flounder through the:sleagh of debt? We rob: the sehool: fund: that Bismarck, without a .publie: li- brary, can bond and build a $70,000 theater and’ that' Grand Forks can build: a slaughter house or- a ‘bridge to East Grand Forks to quench a never dying. thirst? There. is- no . rea~ Better Roads One of The Big Problems. That Confronts Better: roads is. one of the vital problems of the day: It is one that: concerns the 3Iarmer very mmch. There -has: been a lot of “good, roads’” These facts were brought out in a- discus- ston by J. W. Parmley at Ipswieh, S. D. at a meeting of the West: Minne- sota. Development asgociation,. He said in part: Hauling CGost Too High .“Authorities agree that the cost of hauling over country roads is 23 cents. per- ton milé. Betweén 350,- .000,000. and. 400,000,000 touns: go- over:, these roads annually and the aver- age haul is eight miles. The annual hauling bill is approximately ~$700, faced the cost would not be over 13 cents per ton mile; or a:saving of) $300,000,000" ehac. year., This. is:abso- Jute waste. We are pouring, water 'into a rathole and not getting the rat. “Into: the transportation’ problem new factor has come and it is: here “F think so.” fines, “If damage is done to a garment, the offender is fined $1.50: or $2.. If the offenderis not known, we are all assessed 25 cents apiece,’”'she»‘ said. is . perhaps. a|. Fannie Berg told: of: a system- of: son why a city should borrow the monies of the school funds for less than the farmer pays. Let them all have it at six per cent and bureh o one could complain. 2 - Sinking, Fund a Failure The rule in all political divisions. in the borrowing business in N(nth Dakota has been to bortow and re- - fund—refunding sometimes’ ot alone principal but a block of interest hs well. Some:abortive efforts have been : made at sinking funds but httle has been accomplished. It is to’ be ques- tioned if the sinking fund method of raying debt is not werse than no method at all. Durirg tle Napole- onic wars England- lost_ 3 pounds through Pitts’ smbborn de- termination to make his” mventlon,_ the sinking fund, work. Last year it was discovered that New York had been taxed $19,000,000 for a smklng fund more than was neces: ary | under 1o a scientific bond amortization- plan. In 1880 the Boston smkmg* fund was. despoiled of $82,000 and”’ agmn m 1904 it was robbed of $292,000 for tha benefit of other funds. Lynn, Mas:., sinking fund was short $400,000. Chicage’s sinking fu-nd is regularly taken for current exp nseu. Even under the brilliant adammstm- ek tion of Des Moines by the city,com- mission, a levy of 2.6 mills was levned- in 1910 for interest and smkmg funds ¥ when it should have been 5.9’ m';' It would be difficult to find a city school district or county in qut}xf kota where the sinking fund has not _ fallen upon days more or less evxl“ - % Up- to School Lands de The: North Dakota. umversxty and 7 school lands board might take a long step. toward: colving the: debt burden of North Dakota. If they were to'ie fuse to loan the funds in_ thelr cus tody- except on-serial Bonds' ‘the: leg- '{-0_'-_' islature. might: take-anothez: Iéq’sfin by enacting -the Massachusetts laws. the - people: of: the. state could: com- plete the joh if they were to interest: themselves in public affairs to the ex- "tent that:they-would know what'they: - are doing when they vote a bond.is-- sue. to stay. Over 90 per cent of yo‘lir. horny-handed. plutocrats drive y6ur own automobile and not one has, or: ever will abandon it, except. m & mudhole. With this changed cong_ll- tion has come the demand for not. simply a bétter but a good road. Ifi* must be a road- that ¢an be used” in 2 -wet as well asc dry: weather and it g must: begin somewhere: and:. go - some-- : where; Our county:and state lines: must prove no. barrier. \ . Siate.-Aid Needed - “Less than 23 years ago, New Jer- sey adopted state aid as a partial so- lution of the road problem and-about! half: of the states-are using this: ot.. modified systems. “In all t}};se stateer the tendeney has been for mcx appropriation from the state tbnough‘ taxation of all property and a largel.‘. participation of the state in the-su< pervision and control of htghways i T i, ‘“We: fall down in road: maxntenancea When we build a road we are apt tm say: ‘There, that’s fixed,’ and we’ gq “The practical road for the grea Northwest is the graded dirt road of ° sufficient: width to: permit fnghtened howses and: automobiles to “meet ¢ 011 pass each other, properly rounded tn furnish dramage, grades with sid sloping so as to preclude the tipp.mg ‘of” automobiles of a load of* hsy' Tas vines with neeessary cu.lverts oz:,spflld ways.- and creeks or rivers bxldgedj strong enough for tractor eng;nes. AR A dollar: invested in the fa:m wnll ‘help . raise a.crop. A. dollar huyosted A ¥ [ In 1909 the lost 300,000,000 .7 i \ away and the road falls tq) pxeceé,g‘**-;‘ 000,000. If our roads:were -hard:surs |’ Tt m your, farm organizatlon will helg