The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-08-04
KEEP MONEY HERE.
New State Laws Make Home
Investments.
Half Million Dollars Stay in
Kansas.
FORMERLY WENT EAST
Municipal Bonds Were Sold Out
of the State.
State Auditor Overloaded With
Bond Issues.
'ORMERLY WENT EAST

If the bank guaranty law does moth
ing else it is keeping within the banks
and borders of Kansas hundreds OF
thousands of dollars of interest which
has been paid out annually to eastern
firms on municipal bonds
Since the bank guaranty and and
the nontaxable bond issues have gone
into effect in Kansas the millions of
value in bonds issued by municipaIi-
ties have been kept right in Kansas
and they have been purchased as fast
as their issue by home bankers and
investors.
Under the old laws the cities and
coul les advertised their bonds at a
certain per cent and they were COB
bled up at minutes notice by east
ern buyers. When the immense
amount of bonds are taken note of and
the amount of money is figured out
which has been flowing in steady
stream to eastern banks and corpora
tons the immense good accomplished
by the new bank guaranty law and the
nontaXab BILE bond issue can be seem
For instance last year the municipal
bonds registered at the Office of the
state auditor amounted to 3 Z millions
of dollars. Almost all of this went to
eastern investors and they realized
large sums on the interest This wear
the bond issue will be much larger and
IL IS estimated at the Office of the state
auditor that four-fifths Of the bonds
this year will be sold to home bank
ers. This means a half million dol
lars will be kept within the banks Of
kansas-money that has been going
east.
And it has been a great boon to
Kansas cities also. The fact that they
are able to sell their bonds at home
and the fact that the new funding law
makes it possible for them to convert
all outstanding warrants into bonds is
a big incentive for municipal pride.
I have never witnessed such a flood
OF bonds said the bond clerk at the
once OF the state 'uditor this morn
ing. They ere coming in so fast that
we are far behind in registration.
From the looks of things there is GO
ing to be an immense amount OF
money spent for improvements in
Kansas this year" And he was right
because the bonds are practically all
for paving, sewerage, electric light,
water, and the like.
This year will undoubtedly be the
greatest year in the history of the
state for municipal improvements. With
he new funding and guaranty laws
combined VITA the nontaxable laws.
civic pride Is allowed by home me ans
10 be increased and the state thus
improved
And che school fund commission COM
5uSeu OL oldle CupeIlutenQent OF PUB
ic instruction Fairchild. Secretary of
5tate Denton and Attorney General
Jackson is arising to the occasion. t
s said by authorities at the state housa
hat the school funds We're never i'm
,UcE good shape and the investments
we're never better. The commission is
leeping the money in rapid rotation
and the amount of interest figured
emi-annualIy reveals some startling
e ults.
The school fund commission has sue
eeded in investing every penny of their
money on hand and it is drawing hun
TedS of dollars interest every day. They
lave also Joined together with the new
avs and the municipalities over the
tate are taking out bonds with them.
Naturally the school districts are re-
Giving the greatest benefit from this
CUrce.
1t is said that very little money this
ear viii go out OF Kansas on bond
ssues. Fasteners are struggling for
hold or this rich harvest but with
he power Of the bankers bearing upon
hem they will be unable to take away
rom the citizens of the state their
ONE pride. The great proposition in
very commonwealth today is to keep
he mO1ey at hOme''-that is the battle
rY of every community from the small
chool district and the municipality to
he state itself.
With the new influences of the late
Avs passed by the legislature cf Kan
as this is possible and The loyal citi-
ems are taking advantage of every
loVe. Bankers and city officials visit
lg the Office of the state auditor all
eclare their intention of selling right
ut to their bankers or trust companies
-ithin the city limits and they are dOing