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To be interrelated with committee on finance.

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Dr. Loevy, would you make a comment on that?

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DR. LOEVY: Yes. At lunch the other day, Jack

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Jones raised this question, that counties issue their own

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bonds and back them up and he raised the question, when

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you start changing county lines or creating metropolitan

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governments, ho said this problem came up with the Port

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Authority and the Metropolitan Transit Authority, you

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start changing boundary linos and you affect bonds.

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I think the reason Mr. Jones raised this ques-

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tion is because he is in the business of these bond issues

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but I certainly think that it is worth looking into and

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checking with the committee on finance. We really have to

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know how they are going to finance on the operation of

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local government or how their thinking is developing be-

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fore we start altering or thinking about altering the

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structure of local government too widely.

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THE CHAIRMAN: It certainly appears obvious that

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the value of a bond is going to be dependent upon the

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credit of the issuer of the bond and, if you start changing

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the lines which naturally is going to mean a change of