The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-08-04
CITY BONDS SOLD
TO WAGE FARMERS
Experiments at 81. Paul, MIMI,
and Baltimore Successful.
CIVIC INTEREST ! E i AROUSED.
Personal Hoardinas Invested In Mu-
z nloIpal Stook-The Cities Aided In
Troublous Times and Securities
Widely and Wisely Distributed. -

WILDLY and Wisely Distributed.
The idea of buying at home has been
carried one step further by at least
two American cities which have re-
Gently sold their goods at home. These
goods consisted Of municipal bonds,
usually disposed of in some foreign
market and money center. While cit
les are selling their bonds in distant
centers and sending the interest away
annually, there remains at home thou
sands and thousands of dollars hoard
ed up by local people who are will
ing and anxious to invest it in the
bonds If given the opportunity. This
has been demonstrated in st. Paul and
| Baltimore. ,s- =
Back of the experiments in st. Paul
lies an interesting bit of history. That
city some time ago discovered that it
could secure better work or street Inn
provement by day labor than by con.
tract, and it's charter was so amended
so as to admit the desired change. The
amended charter still provided that
| improvement bonds should be sold aft
| er bids had been received and contracts
let, but before work had begun. It did
| not cover the conditions for day labor
on the bond side apparently. There
fore when 100000 worth Of per cent
paving bonds were issued there arose
question as to their legality, and bro
kers were rather shy of them. -.
! A bank inquired into the matter, OBJ
tained expert advice and found that
the bonds were legally all right. 1t
therefore purchased freely and. to see
what could be done in the way Of in
teresting the small investors, put be-
fore one Of the leading department
stores of the city plan to dispose of
the bonds over it's counter. The stores
heads fell into the plan at once, took
the bonds, announced sale on Ger
tain day, the bonds to be sold at the
price paid for them and guaranteed so
that no investor need have any fear
about getting his money back at any
time. A limit Of $1,000 to each pur-
chaser was fixed. In all 500, 900 worth
of bonds were disposed Of in five
hours. The purchasers were for the
most part women, and the average
purchase was about $3.50. The money
came from local savings banks, from
the postal savings banks and from per-
sonal hoardings. ~.-.<
Shortly after this another issue of
$25, 900 worth Of bonds for a municipal
playground was offered. A bank took
the entire issue and announced to the
public that it would sell, with these
bonds as security, trust certificates in
denominations of $40, no purchaser to
receive above 500 worth. The sale of
these certificates was quite as success
full as that at the department store.
In the city Of Baltimore the finance
commissioners opened bids for an issue
of $5,5OO,000 of per cent city stock
which had been duly advertised for
sale. The bids received totaled only
$559,OOO By rejecting bids below 80
and accrued interest the commission
ers were enabled to award but $427.-
600. The sale was distinct failure
Within ten days, however, the whole
issue had been disposed Of at 80 and
interest. A direct appeal to the peo-
pie and sale over the counter to small
investors, proposed and carried into
effect by Baltimore newspaper, &C.
complished this end.
During those ten days the money
market was in the worst condition it
has been in since 1907. With that in
mind the paper anticipated the failure
Of the city to dispose Of the full issue
and had announced that it would place
small block of the bonds stock on
sale in denominations of 500 and
multiples Of that amount. For this
purpose it secured $4,000 worth and
placed it on sale. In two hours 1t was
gone, and more was sent for. The first
days sale amounted to $43,5O0. On
the second day $4,000 was disposed
Of and on the third $121,4 Orders
were pouring in by every train. "A
week after the sale was announced the
city made it known that it had all the
money it needed and would withdraw
the unsold portion Of the stock and
hold it for better market. But it al
lowed two days of grace to intending
purchasers, and in that time the whole
issue was disposed of. =.
Customers included farmers and
preachers, teachers and mechanics a16l
men and women in every grade of
life. One mechanic brought $4,000 in
bills, which he had been keeping for
years in his house. A priest bought
five shares of stock Ito provide for his
funeral" A woman came hatless and
In bingham apron having to leave her
house in that way to avoid suspicion
on the part Of her son, who wanted to
take away from her the money she
proposed to invest. Many fathers in
vested in the stock for their children.
The object, apart from helping out
the city in troublous time and getting
boarded money into circulation, was to
distribute the city's securities as wide
~ as possible In the hope that posses
sion Of the stock would arouse in the
owners civic interest and make for
efficiency and economy in the NUM-
cipal administration
Color Schemes In Gardens.
+ We should pay more attention to col.
or schemes in local gardens. Where
much massing of trees and shrubs is 4
done why not have reds and yelloWs