The herald., 1898-06-18
OFFICE OF THE HERALD.
LOS ANGELES, June II, 1898.
"Genius is eternal patience"

The condition of the municipal bond mar
ket at the present time is a matter of in
terest to many investors and the utterances
of the New York Financier on the subject
are worthy of attention. 1t says:
The municipal bond market, after the re-
lapse of several weeks since due to the
etringency In the money market, is assum-
ing an activity only second to that dis
played shortly after the presidential elec-
ton In 1896 The weekly record of sales
published in this paper bears evil
dence In the bids offered of the
demand for municipal securities, and
the list of the firms and corporations seek
Ing desirable investments of this character
includes many houses that have not been
. in the market for some time. An American
municipal bond, properly issued, consti-
tutes one of the best and safest forms into
which savings can be put 1t is second only
to a government security, and at times
brings an equally high price.
The Financer goes on to comment upon
the curious lack of information or native
carelessness that appears to distinguish so
many municipalities In the Issuance of their
bonds a reproach from which our own city
is not altogether free, 1t says:
There Is a curious lack of uniformity,
however, in the matter of issuing these
bonds which must have forced itself on the
attention of all who have had occasion to
handle them. In no other department of
finance is carelessness so apparent. Many
of the minor issues are cheaply printed, and
the experience of several banks which
bought over one hundred thousand dollars
OF forged bonds two or three years since
shows how easily forgeries are perpetrated.
This may have been an exceptional in
stance, but suits which are being carried
into the courts at all times to establish
whether certain bonds are genuine or forged
ought to be proof enough that the bond
business as a whole Is capable of reform.
We are aware that many of the more prom
inent bond houses insist that certain regu-
lations with reference to printing shall be
compiled with before the bonds are ac-
cepted, and one or two well known firms
have designed an original blank bond which
cannot be forged. AS a rule, however, in
the smaller towns the local printing office
Is relied upon to turn out the form, and no
restrictions are placed on the number to
be delivered. The unused blanks are sell
dom destroyed and offer a constant oppor-
tunity for the perpetration of gross fraud.
Lewis, the Ohio forger, was successful SIM
ply because the towns with which he had
dealings gave him carte blanche in the mat
ter Of ordering blank forms, and he had
only to fill them out to raise money from
banks.
How this state of affairs can be improved,
the reputable bond houses themselves must
decide. They are at present engaged in
combating irresponsible bidders, who by
forming pools are rapidly bringing the mar
ket into disfavor but in their effortssto
maintain their business on the high plane
which its Importance warrants they should
also insist on uniform, high class printing,
with restrictions In the way of a proper
registry in order to protect unsuspecting
banks and investors against fraud.