The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-02-05
URGES HOME SALE SET new RECORD
Kansas Marriages
Bonds. Sixty-Two Daily in 1920.
Investments Equivalent Report Makes No Account
turn of 91s Per Cent. of Leap Year. y
-
HIGH RATE IS CHARGED TOTAL OF 22,507 IN YEAR
Buying Was Formerly Monopo Cupid
lied by Favored Few. During War.
N A. Turner Suggests Notices Total
in Local Newspapers. Was s9,3s4
State Auditor Asks Cities to Sell
Own Bonds.
Investments Equivalent to Re-
turn of 91s Per Cent.
HIGH RATE IS CHARGED
Buying Was Formerly MonopoI-
lied by Favored Few.
N. A. Turner Suggests Noticea
in Local Newspapers.

Pointing to the fact that a sIa per
cent return on a tax exempt invest
ment is equivalent to a return of L
10 sz per cent from money invested
IN taxable property, N. A. Turner,
state auditor, is urging Kansas mu-
inequalities to sell their bonds at home.
During the last year municipalities
nave been compelled to pay the highest
interest rates in history in order to
sell their bonds, according to Turner.
The rate in this state has varied from
"A Y per cent to per cent depending
on the kind of obligation. Kansas
municipalities registered in 1920 a to-
tai or more than s26,000,0O0 worth of
bonds.
Sell IS Per Cent to Banks.
Under the state law all bonds issued
by cities, counties and school districts
must first be submitted for sale to the
administrators of the state school
iund OF $1O,000,000. Since this fund
is practically all outstanding on long
term bonds, the fund was able to alb
sorb only per cent of the bonds Of
Tered in 1920. The remaining 95 per
cent was sold to banks, investment and
trust companies, bond brokers and in
dividual investors.
Until recently this attractive field
for investment was monopolized al
most entirely by a favored few" Tur-
ner said. The rank and file of peo-
PIE looked upon a municipal bond as a
sort or mysterious thing intended to
be handled only by financiers and not
by ordinary citizens.
My judgment is that a very large
percentage of the bonds issued by KAN
sas municipalities could be placed at
nome, If the authorities having charge
OF the matter would not get in too big
hurry to race off with them to an
eastern bond broker"
Suggests Notice in Newspapers.
Mr.. Turner suggests a notice in the
local newspaper several weeks in ad-
vance, informing home investors that
they VIII be able to procure bonds of
the given denomination. This would
permit those desiring to invest to
make tiher funds available
The city official of a certain western
Kansas town appealed to the state
auditor for assistance in finding a buy
| er for small issue 81 bonds. Acting
upon advice to try to sell them in
small lots among the home people, he
returned and without even inserting a
notice in the newspaper, disposed of
all the bonds at par among residents
of the community.
"A great many officials appear to
believe that when an issue of bonds is
authorized it is necessary to dispose of
the entire issue at once" Turner con-
tinued. "As matter of fact the most
efficiently managed cities of Kansas
place their securities on the market
piece-meal, and only as the funds are
needed, thus saving to taxpayers as
long as possible all accrued interest on
unsold bonds