A town may appropriate such sums of money, not exceeding $700.00, for a free hospital bed or beds for a period of not less than one year and may appropriate such sum of money, not exceeding $5,000.00, for the permanent endowment of a free hospital bed or beds, as such town or city deems advisable, for the use of the inhabitants of such municipality as are entitled to receive assistance by reason of their indigent circumstances.