Morris tribune., 1913-08-22
MONEY BROUGHT
OUT OF HIDING
Popular Sale Of State Bonds
Shows Cash Is Not Scarce.
MANY DO NOT TRUST BANKS
Small Investors Apparently Anxious
for Some Safe Way of Using
Their Surplus Earnings.

st. PauI-(Special)- Representative
! Spooner's claim that there was any
amount of money in Minnesota ready
to invest in state bonds was realized
last week when State Treasurer Smith
and the members of the state board
of control placed 100000 worth of
educational improvement certificates
on the market and sold them in a
| day. The sale was in the face of the
refusal of the banks of Minneapolis
and ST. Paul to absorb the offer, as
they usually do. The period, three
years, and the interest, 5 per cent,
/ did not look good to them Anticipat-
ing sluggish bond market Repre-
sentative Spooner, whose home is at
Morris, when he put over an author
lied issue of nearly $3,000,0O0 in state
certificates for the construction Of
new state prison at Saltwater some
years ago, provided that in the event
that the banks and the state invest
ment board did not elect to take over
any issue of state obligations offered
that the general public should be CIV
en- chance. His contention was that
there was any amount of money in
the state in small amounts awaiting a
safe investment. A few months ago
the state board of control had on its
hands $4,000 in prison certificates
and 100000 in educational building
improvement certificates authorized
by the last legislature. 1t advertised
freely for bidders and none came.
Finally the state, after several lengthy
conferences, took $225,000 of the
amount. 1t was then that Representa-
tive Spooner stepped in and he point
ed out few things to the state board
of control. He advised them through
; interviews and personal letters that
the general public was entitled to
chance.
The popular sale of the certificates
y was opened following several large
sized advertisements in the Twin City
and Duluth papers. 1t was the first
in the history of the state and if you
? will accept the word of yours truly it
{ was a success. At $50 a. m. there
were several score of people in line
, and at 10 o'clock, when the Office of
State Treasurer Smith opened for
business, there were fully as many
more. Half of them were women and
the majority of them had currency.
The male end of the line was similar
8 ly supplied and the fact so impressed
e the st. Paul police authorities that
four plain clothes men and as many
uniformed officers were detailed to
/ protect the buyers and see that there
a was no quarreling for position. At
noon many of the women had become
exhausted from standing in line and
chairs were supplied for them by
j State Treasurer Smith and the state
e capitol custodian. At noon over $780,
/ 900 of the certificates had been sub
scribed for and the state board of
control ordered that 100000 more be
thrown on the counter. They could
N be purchased in amounts as low as
$100. The majority of the purchasers
n were working people. One Greek
N came with $2,100 tied up in a bandan-
2 ma handkerchief. 1t was all in 500
bills. A woman had $40 in pennies
and the balance in bills. Before the
day was closed the entire 100000
' worth of certificates had been sold.
y 1
am going to let you in though on
few things regarding the latest idea
g in the sale of municipal and state OBJ
legations. The opinion is that when
s the banks and bond concerns will not
buy that money is either tight or that
the prevailing rate of interest is not
ID high enough. This is rot. | suppose
1t | will be called cynic for asserting
tt it, but this popular sale scheme is
n bringing to the banks thousands of
dollars that would never reach them
1t is perhaps beyond comprehension
1t nut there are in Minnesota hundreds
1T of thrifty persons who are boarding
money. They will not trust the
banks, or if they do the possession OF
% $500 or more does not appeal to them
to the extent of finding a proper de
al pository. 1t is this popular sale oil
- municipal or state securities that ap
peals to them and it was never bet
ter exemplified than in the case oi
st the first sale of state securities. After
IL the first two or three sales, which
" were to persons of the professional
kind, the Ycx popuH followed and ther
the boarded wealth was brought forth
IL The investments ranged from $100 tt
A. $500 and the money was paid over il
real coin OF the realm. 1t came fortE
reluctantly from stockings, skirts ant
inside coat pockets and the owners
watched the clerk who counted it GU
y with hawklilIe eyes. There were n;
le mistakes on either side. Now all thiI
O. money has since found its way to tn,
l6 ST Do1JI l.,