St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-02-07
A FINANCIER'S VIEW.
Which Explains Why City
Bonds Will Outsell Edu-
cation Bonds.
Jobbers Are Willing to Ham
die All st. Paul's Home
Made Cigars.
A Septic Microbe, Not a Poi
soned Glove, Caused a
Lady's Death.
School MaPms May Win q Hun
dred Dollars by Their
Ingenuity.

81 am willing to go on record" said
L. w. Peet, who bought the last block
of 100000 board of education bonds, ''as
saying that the result of Aid. Yoerg's
speech in council will be very injurious
to the sale of future bonds in this mar
ket. While the faith and the credit of
the city are pledged to the payment of
these bonds, yet in the face of such a
statement as that of Yoerg'S. if pub
lished in the Eastern papers, future
bonds will be much more difficult to
place.
Il am also willing to go On record as
saying that the sale of those bonds at
par and accrued interest. was at an eX-
ceedingly good price. 1t is. no disparage-
ment to the board and the bonds that
they brought less than city bonds. aud
to argue otherwise is to argue
an ignorance of the subject. City bonds
always bring more than school bonds,
for several reasons. Board of educa-
ton bonds are issued only by depart
ment of the city government and do
not bear the signature of the mayor. To
establish the fact that they are direct
obligation of the city requires an exam
ination of the general and especial en-
abling acts and the proceedings of the
board, to say nothing of the validity and
conStitutionality of the act creating the
board itself. This is all expensive
and reduces the price Of the
bonds. But the principal difficulty lies
in the fact that these are school and not
city bonds, and the market for school
bonds is much more limited. There is
n tnT nj e
and banks which will and can invest in
city bonds and cannot in school bonds !;
in fact, the organic laws of many in
corporations prevent their Investing
in anything but city bonds.
These laws are very stringent,
and it is not every -city's bonds
which will meet the requirements. Our
city bonds have been bringing a higher
price of late for the reason that st. Paul
and Minneapolis have only recently
been placed by many New England saw
ings banks IN the list of cities whose
bonds were entirely eligible. Nearly all
OF the city bonds have been bought by
Boston Syndicates.
There is still another reason why
the board of education bonds sell lower
than city bonds. There is no market
value or quotations given for school
bonds in the financial papers and on the
market, as there is for city bonds. In
vestment concerns holding school bonds
are unable to quote them in their state
mentS as of certain market value. Is
II any wonder, then, that city bonds sell
higher than school bonds?"
us it true that these school bonds
were not advertised, as has been charged
in a morning paper?'
at is not true; they were advertised.
| made an offer, which was declined.
The bonds were then advertised, and
after there were no bidders the board
asked me if | would take them, which
did. There was 100000 at per cent,
at par with accrued interest, which was
an exceedingly good price. In 1887 there
were $4,000 at AZ per cent advertised
and no bids. The board had considered
the ACCESSIBILITY of Withdrawing them
and making them per cent, when they
were sold, on condition that the pur-
chaser got all of the bonds issued in
1888. This was done and these bonds
were the only ones not advertised.
Anybody" continued Mr.. Peck,
"can see why city bond is better than
school bond, under the same condi-
tions. l would rather buy city certifi-
Gates or estimates at per cent than
board of education certificates bearing
per cent. Our firm has bought more
city bonds than any other dealers
Until recently we made the same offer
for city, county and school bonds,
which no other brokers ever:did. We
can no longer do so, as our principals
decline to carry, at the same rate.
bonds not quoted on the market. l
think this should make this matter
clear"