Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1903-06-21

This shows gain of s25O21 rs the trans
actions up to July l. 1907 over the former invest
mtnt.
The question arises as the results to he
obtained by the exchange after July /. 1907 We
know that under the constitution of this State. in
vestment of school funds has been wisely limited.
the evident object having been to secure absolute
security without hazard of speculation There was
presented to the Board but three alternatives: Hold
the L. S Bonds on hand to maturity and lose 10
cent to 111s; invest in Governments offered
at , Der cent. accent investments in tn bends
of other States ga
Believing that rs Icng as a Government of the
United Statoz exists the State OF Massachusetts will
continue to be Of the leading states Ct the
Union both in wealth and power. the Board after
the ost deliberate consideration decided, aso far
possible 10 stop the further loss by deDrecation
and invest the funds in Massachusetts bonds at l
per better interest than be obtained frCm
the Government. L4O @
The query naturally arises. why should tho Gov
eminent bonds he much more highly esteemed
investment than the bonds of the State OF
Massachusetts? The answer is plain. Government
bonds the only basis of National Banks. If
banking corporation desires to enter business.
per cent net interest earning bonds be deposited
with the Government and the depositor receive the
interest with low tax threon. and an equal amount
in National Bank Notes returned, which constitutes
business capital to them in addition to the interest
received on the bonds. but the State of Mass
achusetts bonds cannot be used neither can the
State Of Nevada go into the banking business and
the benefit. 80 =
Massachusetts State Bonds are taxable In the
hands of private individuals but in the hands OF the
State of Nevada are not assessable. This places
Massachusetts bonds On a higher interest than
United States Bonds ip. so farAas the State OF New
ada Isl ooncernedf "a - 4fG 12 11%.
The next query IS, why Should the State of Mass
achusetts be selling bonds? With taxable property
assessed at nearly five billion dollars. This is ex
plahed uyon THE authority of that State. which
provides that Aedties and Municipalities desiring to
construct water works. sewerage or parks. etc.
when possessed of the necessary funds without
borrowing shall apply to the State and upon such
application and coed reason given the State accepts
security offered by the city and issues bonds full
and comnlete for the amount needed and by such
means bonds go upon the market at greatly re-
duced rate of interest by of the better stand
ing the9 State has over any town of city, this not
only intreases 4he valle of the town and city prop
erty but gives increased revenue to the State.
RECAPlTULATlON
The State of Nevada owned U.
S. Bonds which were upon the
best authority producing inter-
est value of LIB per cent. $6S5OOO w
The State now ownes Mass. 51Ferrrt-f~
per cent. $o3I ,OOO W
And Mass 3k per cent. ..... $4,000 W --t q.
&> fAF9At5 10000 90
Which is and will continue
draw more than per cent
per annums than any y. s.
Bond. The I per cent Will
make a favorable difference of e..t :.
$726O 90 each year to be dis
trbutei to the Schools. which
if continued to maturity will
. yield more than 261,OOO U
'tfht #fh nfst coRREsPohDENcE.
ANaret Prices and Values Of Outstanding
rF'HNiik1T Securities, March "a, 1905