Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1903-06-21
SCHOOL FUND FULLY PROTECTED AND ENRICHED BY TRANSFER

The management of the State School Fund is
sacred trust which the State Board of Education both
recognizes and obeys Every dollar of this fund is
be guarded and invested with and fidelity We
that every dollar Of this fund been guard
ed and invested with eye single to the welfare of
the public school fund Of the State
Perhaps we can do no better than quote from the
message OF Governor sadler to the Legislature of
''"rhe vafuecof the United States bonds as quoted
in the market is follows: $ss5Oo0 90 of the ss:'e
OF 1907 at 116 makes them worth $794,6OO co. The
high premium the United States bonds has the
effect of materially reducing the profits of these
investments. The late purchases have been made at
a rate of about 1874. yielding interest of about
per cent per annum.' Then in recommending that
further tax be loaned for redemption purposes
Governor Sadler goes to say: Why should the tax
Of the State tax themselves pay off their
own bonds drawing per cent interest and turn the
amount into United States bonds producing only 2
per cent or less?"
We make this statement to the tax payers of
the State because they interested in every thans
ACTON which increases their income and lightens
their burdens, This is the case with this bond
transaction Increased principal and interest per
manent and safe investment in the Massachusetts
bonds. makes up the whole story; and the transac
ton has the approval of all who sincerely interes
ted in the vefare Of the State On the part Of the
State Board of Education it carried with
gard to the interests of the State and the State
only. whose servant the State Board Education is
To make plair the urgent necessity for action
by the Board it is necessary take review of the
results of the operations of the investment by the
state IN u S per cent bonds maturing July, 1907.
Those bonds were purchased by the State
at the time of the investment The highest rate paid
1227s and the lowest between 1O7 and los From
the highest rate paid there has been constant and
gradual reduction in the market price of the bonds.
fluctuations have been in evidence. but the natural
tendency of the near approach to maturity
has always been downward.
AS before stated in the Governors message to
the Legislature in 1901. the bonds were worth in the
market 49, and eS5.ooo in bonds We're
After holding the bonds years they
were no, and value reduced to 1355O0 90
Showing depreciation in two years Of. 100 90
Interest collected during two years per
cent per annum Observation-Disclosures. $4,000 90
Deduct depreciation in value ...........: 411oo 90
We have net profit amounting to l per
cent per annum NEUTRALITY-SUSPICIOUS.. Is 700 90
This showing that the State has collected per
cent III interest in the last two and has lost
per by depreciation was sufficient to arouse
the Beard to a realization Of the fact premium
of 10 per cent amounting to s6S.50o still pending
and must he registered as total loss uness realized
in manner within less than four years time.
Being restricted by the Constitution of the State
to investments in bonds OF the United States of the
Union, the Board has few opportunities of relief.
The State Of Massachusetts had bonds oustand-
ing that could be purchased. and few Southern
States We're in like condition which at the beginning,
the only Investments offered.
The Treasurer of the United States at a late date
made 7oa- call inviting the surrender OF United states
As, 1907. fer new issue Of I. S. bonds bearing
cent per annum. which were in the National
Banks very desirable, but for purely interest in
vestmen such the State could only make.
not to be considered except last resort.
After having sustained loss during the last two
years of SAL 100 in value and further loss of
of s6s.5oO impending at the end of three years and
nine months in the bonds should be held the
Board came to the conclusion that it would not only
be unwise but actually criminal to permit contin-
uance of such policy. if a remedy could be found
Upon thorough investigation as above set forth,
the Board decided to exchange the States Govern
of 1907 for Massachusetts bonds. the condit
ions being as follows:
First inv we estment 100000 co.
Treasurer State of Nevada
Carson City, Nevada.
FARSON. LEACH eco.
Public Securities
CHICAGO and NEW YORK
NE. NEW YORK. APRIL 3D. 1903
s5s7 600 90 Massachusetts State ~
Met. Water Loan Ill
1921 ..'.....s.. s54s,os2 so -
Interest from Jan
L. 3m 15d. ....... .4.e9S Is .~-y 90
Due July L. 1889 ........ s553,7S1 %
PURCHASED.
$500 900 u S. Reg As at 10. 900
Interest from Apr c4j ~
/, to Apr. 16. I'D. 1873 50
Due July I 1907 ...... $3.50 1873 81
Balance NEUTRALITY-SUSPICIOUS.. .2,94I ~
In the demonstration of the transaction will
suppose that all premiums paid on Massachusetts
bonds will be lost July L. 1907 and knowing positively
that all premiums now on our Governments mus
cease same date. will still have at the time named
Massachusetts interest bearing face svaNe Ia !
per cent bonds ~ =. s$baJ.WO W
And will have collected interest amounting
to .................. ............ oV,41I ~
AS against holding Of U. S.
matured bonds 100000 90 e
= And interest collected for all
time per cent ............7 $4,000 %
VI, $4,000 o.
leaving net increase in value
Of Massachusetts at parJanA' .,.'5l j i. !.
interest --......... ...'''.'.''.'' $A1'fAN
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