Mail Tribune 100: Dec. 22, 1917
Dec. 22, 1917, continued
LOCAL BANKS TO FINANCE CITY IN NEW BOND ISSUE
Home Institutions Prove Patriotism and Confidence in Present Administration by Agreeing to Take Proposed Issue of $20,000 5-percent Bonds if No Bids are Received.
The city council at its special meeting last night decided to pay off $5,000 of the $25,000 city hall bond issue with cash now in the treasury, thus making the total amount to be refunded $20,000, and passed legislation making important changes in the call and form of the issue and will re-advertise for refunding bids at once. The changes were made to make the bonds more desirable and salable.
A big feature of the meeting was the loyalty and co-operative spirit shown by all of Medford's banks which offered, thru President Delroy Getchell of the Farmers and Fruitgrowers' and President William G. Tait of the First National, to take the bonds for two years at five percent in case no bids were received from bond houses, and to hold them with the hope that by the end of the two years the war may be over and the money market conditions much better than at present which would give the city a better opportunity to sell the bonds advantageously to bond houses.
Messrs. Getchell and Tait made it plain that the Medford banks did not want to make any long time investments or short ones either at five percent, as they could obtain much higher interest for all their funds. They also said that the confidence the banks have in the present city administration and its policy of putting the city's finances on a sound basis had much to do with the offer.
The new $20,000 refunding bond issue will be in units of $500, with $1,000 falling due each year, instead of the units being $1,250, with that much due annually as heretofore. This change was pleasing to the bankers and was thought to make the bonds more salable.
In line with its policy to reduce the indebtedness of the city annually whenever the condition of the city treasury permits, including the paying off of $5,000 of the $25,000 city hall bonds, the city council will have reduced this indebtedness by $31,000 since last February. In that month $15,000 of a $45,000 issue was paid off and since then about $11,000 in sewer and water bond bonds have been taken up.