The daily silver state. [volume] (Winnemucca, Nev.) 1903-1907, 1903-06-29

opinion as to the validity of any Act
or Acts of any State in which State
bonds are issued.
In accordance Herewith. the Board
of Education consulted with the at
tCrney general at every step and OBJ
tanned his legal opinion that the Acts
or which these bonds were issued
were valid.
3. The Act says hat the Board OF
Education shall direct the State Treas
urer to negotiate for investment of
a sum in United States securities OF
in the bonds Of this State or in the
bonds of other States at the lowest
purchasable price.
The State Board of Education did so
direct the Treasurer and made an ex-
change of bonds which will result in
keeping the public school fund inim-
paired and will increase the rate Of in
terest as is shown in the concluding
portion Of this statement.
THE VALUE OF THE MASSACHU-
SETS BONDS
The first and only question to be
considered is this: Are the Massachu-
sets bonds a good and safe invest
ment2 Ii they are a good and safe in
yestment no further question car be
raised against them. The State of
Massachusetts, is not only n of the
oldest but is one of the richest tates
il the Union. II is furthermore very
conservative in its financial operations.
Its bonds are held in esteem by
states and individuals who desire a
safe and good investment. The Mass
achusetts bonds which are now neld
in the State Treasury have o only
a good standing in the money market.
but similar bonds are held by the
states of the West and Northwest to
the amount, in one case. of over two
millions Of dollars. as an investment
lor their public school fund. United
States bonds are no longer a profitable
investment. The interest upon United
States bonds does not net to exceed
lS1 per cent per annum while the
massachusetts bonds net the State Of
Nevada 3 per cent per annum. The
esult OF this increase of earnings for
The public school fund will be appre-
dated when the semi-annual dividend
$ appOrtioned to the public schools of
the State.
The payment Of the Massachusetts
bonds is provided for by a sinking
fund which is created when the bonds
are issued. A sinking fund tax levied
each year is calculated at a rate that
will pay into the sinking fund suffi-
cient to pay the interest on the bonds
regularly and provide for the payment
If the bonds at maturity.
The total taxable property of the
commonwealth of Massachusetts as
DeI last published statement by the
Secretary of the commonwealth and
the tax commissioner was as follows:
Taxable real estate so, 434, S9S, 2y5 90
Taxable personal es-
tate ........ ...... 1878, 442. 21S 90
Total taxable propertys4 los. $40. 515 90
Thus it is seen that the total tax
able valuation affords a satisfactory
basis for the issuance of the Massa-
chusetts State bonds for their direct
md indirect debt.
The management of the State School
Fund is a sacred trust which the
State Board of Education both recog-
nizes and obeys. Every dollar of this
fund is to be guarded and invested
with care and fidelity. We can say
that every dollar of this fund has
3een guarded and invested with an
eve single to the welfare of the public
school fund of the state.
PefnapS we can 40 no better than
-uote from the message of Governor
Sadler to the Legislature of 1901:
The value of the United States
bonds as quoted in the market is as
follows: $685., 100000 of the issue of
1907 at lie makes them worth 1894
10000. The highest premium on the
United States bonds has the effect of
very materially reducing the profits of
these Investments The late purchases
have beer made at a rate of about
l34. yielding net interest of about
per cent per annum." Then in recon-
mending that no further tax be loan
81 for redemption purposes, Governor
Sadler goes on to say: Why should
the taxpayers of the State tax them
selves to pay off their own bonds
7rawing 4 per cent interest and turn
She amount into United States bonds
producing only 2 per cent or less?'"
We make this statement to the tax
nayers of the State because they are
interested in every transaction which
Increases their income and Lighters
their burdens. This is the case with
this bond transaction Increased prin-
cipal and interest, permanent and safe