The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1902-08-28
STATE FINANCES
STATE BONDS HELD BY PERMANENT
SCHOOL FUND
Interest Rate Will Have to BE Lowered
to Secure Investments for Rabidly In
creasing Fund = Politics In Thursson
County.

John l.. Murray, chief clerk in the
state land commissioners office, spent
the early part of the week in town
visiting old friends and taking little
rest. He reports the state in splendid
condition financially. Not only are all
IF its obligations met I'm full as they
accrue but ii is practically out of debt
All of the state bonds except about
100000 are held by the perma nent
school fund, and sufficient taxes have
already accrued and will soon be p id to
considerably more than take up this
amount. A few years ago practically
all of the interest paid on the states
bonded debt went to nonresident bond
holders, whereas now it goes into the
current school fund and the youth of
the state get the benefit of it. There is
now on hand in the permanent school
fund $4,000 awaiting opportunities
ior investment in municipal and school
bonds, which are the only kind of se-
curities which the law permits the
state board to invest the fund in, and
Mr.. Murray says that by the time the
legislature convenes the amount on
hand will doubtless reach at least $780,
900 and in order to insure its invest
ment he believes the legislature will
have to authorize the purchase of bonds
bearing less than five per cent interest,
which is now the legal minimum. He
thinks that the minimum rate will be
liked at three. and one-half per cent
tnd that then the state will have little
difficulty in keeping the fund invested.
At present, investors for individuals
and trust companies get many good
bonds by bidding trifle under the
states present minimum interest limit.
He believes that If this county, at the
general election this fall, authorizes q
oond issue for the construction of a re-
spectacle court house, OF which he Is
strongly in favor, all the money needed
can be obtained from the state at three
and one-half per cent, and the bonds
can be redeemed at any time, at the
option of the county.
Mr.. Murray says that the political
pot in Thnrston county is boiling some
what angrily OH account of the strife
between local factions respecting pure
Iy local issues. The recent Republican
county convention was so stormy and
The action of those controlling 1t so ar
Ditrary that considerable number OF
delegates bolted and left the hall.
When he left Olympia there was some
talk of contesting delegation to the
state convention opposed to the COLI
gressional candidacy of A. j. Falknor,
who received the endorsement of ma
jority of the delegates. Just before
leaving the capital Mr. Murray had
conversation with Governor Mcbride,
in the course of which the governor
expressed himself as being confident OF
having large majority in the state
convention in favor of a. regulative
railroad commission, which is his
favorite "hobby," The denomination
of Congressman Cdshman and Jones
seems to be generally conceded and
little doubt is expressed that the third
congressional nomination will go to
Humphrey, of Seattle, and that Judge
Hadley will be nominated for justice OF
of the sunreme court