The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-04-17

tartan Patten.
membered, too, that this was done in
the face of great European war
when the eastern market was being
flooded with municipal bonds at much
higher rates, and when a four and
one-half per cent Kansas bond would
not be accepted in any financial center
along the Atlantic seaboard. While
New York city was selling its obliga-
lions in bulk at six per cent, Topeka IN
September. 1914. sold it's credit at four
and one-haIf per cent without diff
ficulty.
Topeka Plan Spreads.
The Topeka plan has outgrown the
boundaries of the city Whenever
Topeka bond issue is on the market,
we have letters coming in from all
parts of the state, inquiring whether
it is possible to buy single bond or
more. These letters are filed, and if
they ask for one bond, they go into
the first-class of distributes, and are
supplied as fast as we can reach them
in order, the policy being to scatter
them far and wide among the small
investors.
Other Kansas cities are adopting the
idea, and the Prudential Trust COM
pany is aiding them as far as 1T can,
in placing their bonded Indebtedness
at home. among the saving class of
peopIe-the small investor, the local
buyer, the small capitalist.
1t usually requires but one expert
ment- If any bonds are left over. we
take them and sell them in the Topeka
market 1t adds strength to any bond
issue in any good, we1l-managed Kan
sas city to advertise that fifty per
cent at least of the issue has beer
bought by local investors, and I am
constrained to assert that where the
people of any municipality buy their
own municipal bonds, no lawyer will
be able to find a defect in the legal
preparation of such bonds strong
enough to overcome the moral inf1II-
ence behind them, guaranteeing abso-
lutely and at all events.
Loyalty at Home.
kansas bonds for Kansas people
is becoming a popular shibboleth. In
stead of hereafter sending our money
out of the state in wildcat specula-
ton, we propose to keep it at home,
identifying our cities. improving our
roads and highways, erecting better
bridges, putting up finer county build
ings and supporting our institutions
more literally than ever before. We
are studying better methods of han
ding public funds for the benefit of
the public, and smashing private graft
wherever discovered.
Before long we may try the expert
ment of issuing serial 500 bonds,
which will enable us to fund our in
debtedness even more broadly than we
can under the usual $500 denomina-
ton issues Our plan is based on the
French system of selling public in
debtedness to the small capitalist. It
breeds better citizenship. 1t induces
people to take more interest in pub
lie affairs. Where a mans pocket
book is, there his heart is and now
that we have hundreds of small in
vestors in Topeka thoroughly inter-
ested in the public veal. and the care
full handling of its money, I will defy
you to find a cleaner or a more hon
estly and intelligently managed city
than Topeka, the capital of Kansas.
Hint to Railroads.
There is nothing new in the funda-
mental idea on which this plan of
popular financiering rests. The great
railroad system of this country could
follow no better policy than to popu-
lariZe their bonded Indebtedness. They
should make their bonds in such de-
nominations. and place them before
the public in such a manner, that the
people could buy and sell them with
out red tape or unnecessary delay.
The attitude of the voters toward
the corporations would materially
change, were the bonds generally held
by small investors over he country
1t would mean new era of open ac-
counting, square management and
general sympathy and interest on the
part of the public Government bond
way, if an administration would I'M
dertake to distribute them in a bust
ness-like way, locally. without friend
or foe, or having strings attached to
the system of distribution.
You may ask: How does it profit
trust company to do all this work
without compensation? Does it not
mean a loss of deposits? Does it not
entail risk and responsibility, without
recompenSe, and in the end is there
any good in serving such an intangible
thing as the public? Many people
hold their eye so close to the penny
that they cannot see the shining gold
piece short distance in front of them
Some of the benefits to be gained
are: A large acquaintance among
the investing people of the state
Money is left to accumulate in trust
until the fund is large enough to buy
a bond. After a while bonds fall
due, and the money is deposited until
new and satisfactory bonds are pur-
chased, or other distribution of the
money is made. 1t brings trust COM
pany in touch with the banks of the
state; with probate courts, with insur-
ance companies, and with the large
financial corporations over the entire
country
More square feet to the gallon with
Devoe Lead-and-Zinc Paint c. NJ.
Hill & Son, S26 Kansas avenue--Adv.
do You women realize what you are