The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1913-08-21
Popular Sale Of State Bonds
SHOWS Cash Is Not Scarce.
MANY Do NOT TRUST BANKS
small Investors Apparently Anxious
TOR Some Safe Way of Using
Their Surplus 8 arninss.

d. enthusiastically -Representative
opooners claim that there was any
amount OF money in Minnesota ready
10 invest in state bonds was realized
last week when State Treasurer Smith
aho 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 a sluggish bond market Repre-
sentative Spooner whose home is at
Morris, when he put over an author
lied issue of nearly 100000 in state
certificates for the construction of q
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 it's
hands 100000 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,OOO 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 a
chance.
!. :. :.
The popular sale of the certificates
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
ly supplied and the fact so impressed
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
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
State Treasurer Smith and the state
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
be purchased in amounts as low as
500. The majority Of the purchasers
were working people. One Greek
came with $1,000 tied up in a bandan-
ma handkerchief. 1t was all in S1OO
bills. A woman had $40 in pennies
and the balance in bills. Before the
day was closed the entire 100000
~ Of bol
!. :. !.
I am going to let you in though on
a few things regarding the latest idea
in the sale Of municipal and state OBJ
legations. The opinion is that when
the banks and bond concerns will not
buy that money is either tight or that
the prevailing rate of interest is not
high enough. This is rot. l suppose
will be called a cynic for asserting
it, but this popular sale scheme is
bringing to the banks thousands of
dollars that would never reach them.
It is perhaps beyond comprehension,
but there are in Minnesota hundreds
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-
pository. 1t is this popular sale OF
municipal or state securities that ap-
peals to them and it was never bet
ter exemplified than in the case of
the first sale of state securities. After
the first two or three sales, which
were to persons Of the professional
kind, the vox populi followed and then
the boarded wealth was brought forth.
The investments ranged from $1OO to
$500 and the money was paid over in
real coin of the realm. It came forth
reluctantly from stockings, skirts and
inside coat pockets and the owners
watched the clerk who counted it out
with hawklike eyes. There were no
mistakes on either side. Now all this
money has since found its way to the
St. Paul banks. It was turned in by
State Treasurer Smith Immediately on
it's receipt and will remain there I'M