The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-08-07
ARGUES FOR SALE
OF STATE BONDS
STATE TREAsuRER BLOCK WANTS
TO LEND MONEY HERE.
Would Market Virginia Securities
Drawing Three Per Cent and Lend
Funds to Meet Applications on File,
Now Amounting to Over Half a
Million-Improvements Are Waiting
Funds,

State Treasurer j. H. Block has adj
dressed letter, to the state board Of
investment, using the sale Of the
So, 145 900 Of Virginia state bonds now
held by different state funds, in order
to give ready money to loan to Mime
sofa counties, cities; villages, towns
and school districts that have made APP
plications, and have been refused on
account Of lack Of funds.
Mr.. Block s communication is in part
as follows: ~ S.:..,.
...-t q. ..: st. Paul. MINI.
desire to call the attention Of the in
vestment board to the increas sing number
of applications from counties, townships,
school districts. cities and villages of the
state, for loans from the permanent trust
funds, and I also desire to call attention
to the fact that available money has not
for some years been sufficient to supply
these demands. "- '. - =. ="
The board now has before it legally APP
proved applications for more than $780,
900, with no money for Investment on
hand. This condition of affairs should be
ren1edied to the extent possible, and to
that end I have made careful examina-
now owned by Minnesota with the view
Of determining which Of them might be
disposed Of to the best advantage at this
! time, and I am of the opinion that the
Virginia funding bonds would best serve
the purpose. They aggregate $2,145 900
| in amount, and were purchased at prices
ranging from 5S11 to So. They are at this
! date worth approximately SO, and the
state can now receive by sale substantial
! ly all that will be gained from the hold
! ing. Their probable earning hereafter
| will amount to the interest only, which is
| but 8 per cent. They are distributed
among the various funds as follows:
Permanent school fund 49,. 81 1865 900
Permanent university fund -. ....... 355, 0Uo
sPste land
| I am convinced that it is to the best
interest Of the state that these bonds be
sold and the proceeds invested at home
| Nearly all OF the purposes suggested by
the applications on file, would call fol
bonds at a better interest. and the
money derived from the sale, if expended
in the state, would add appreciably tt
| the taxable valuation Of property.
Improvements Are Needed.
| There can be no doubt of the impor
lance of retaining as rapidly as pos
sible the great areas Of wet lands, which
by proper drainage can be made valuable
for agricultural purposes. Schoolhouse!
are needed in a number of sections
water and light plants, suitable publi
buildings and other needed public i'm
! provements are desired in many quar-
tiers; the construction Of a number O
new roads would be possible if the none,
was to be had. a,-
l believe, also, that no safer securitie:
can be found than the bonds of our owl
communities. The educational fund
must, under the constitution, be ~"pre
served invioate and undiminished.
When loaned to it's counties, school dis
tricts, cities, town and villages, the stat
levies an6 collects without added expens
the tax . essary to meet the accruing In
terest anu principal. Reputation is i'm
possible. There never has been "a dolla
Of principal or interest lost IN these loca
bonds. About tss:ooo,ooG HAS, been in
vested in them, and the sum ought to b
much greater in order that the state a
large may receive the benefits from tn
trust funds, which are possible under tn
| laws. ~-4, ...-i .rssn
This board can, by unanimous vote, au
thorize the sale here proposed, and be
lieving that a better rate of interest wi
be secured, and that many localities ca
be furnished with money which they re
quire, and which we are now unable t
J supply, I therefore recommend that tn
state sell the above described Virgini
funding bonds, in such amounts as tn
board deems advisable, and invest tn
proceeds in Minnesota local securities