The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1926-08-11
RETIREMENT IN full OF
FLOR|DA'S BONDED DEBT
ENTIRE ISSUE HANDLED
WITHOUT EXTR A
TAXATION FOR SAID
PURPOSE
tBy Associated Press,


Retirement, in full, of the
$60I,667.0O bonded debt of the
State of Florida, which is now
held by the several Educational
Funds of the state, will be taken
up with the state board of educa-
tion and the state bond sinking
fund commission early in Octo-
Der of this year, State Treasurer
j. G. Luning announced before
leaving the state on business.
These bonds, aggregating $6O1,-
567.O0, represent the entire bond
ed indebtedness of the state of
Florida, originally created during
reconstruction days.
In 1871, $3.50, 100000 of z per
cent state bonds were issued and
in 1878 $925,O0O.OO of 6 per
cent bonds were issued, each
maturing in thirty years and to-
falling s1,275, 900.
These bonds were paid by the
state at maturity during the adj
ministration Of the late Governor
william S. Jennings, with the ex-
eeption of the bonds owned by
the states educational funds which
were converted into 8 per cent
refunding bonds payable in 1861
and 1853, respectively.
At the suggestion of State
Treasurer Luning, and upon recon-
meDdation of Governor Hardee,
the legislature of 1921 enacted
chapter s507, Laws of Florida, ef-
fective July /, 1921, which ere
ated a sinking fund commission,
composed of the governor, secre-
tary of state, encouragement,
state treasurer, and the state sup
erintendent Of public instruction,
who were authorized to invest ia.
terest on deposits Of state funds
collected by the treasurer in bonds
Of the United States. or any of
the states. the District of Colum-
bia, or any county, municipality,
road district. or school sub-district
originated under the laws Of Flor
ida, the validity of which bonds
have been approved by their at
torney-general. The personnel of
this commission Is the same as that
Of the state board of education.
The bonds now owned by the
sinking fund, together with cash
balance In the fund, are already
approximately equal to the $6O1,-
667 state bonds which they are to
retire end with the early collec-
tions of interest due October 4,
1926, on state deposits in banks,
there will be enough bonds and
cash in the sinking fund to turn
over to the state board of educa-
tion in exehange for the outstand-
ing Florida 3 per cent bonds which
viii be satisfied end cancelled.
This will probably be the first
instance in the history Of any
state where its bonded indebted
ness has been retired without one
dollar of taxation for that pur-
pose, as well as the only instance
in which interest on state deposits
have been applied to the redempt-
ion of a states bonds. The fact
that this Is to be accomplished in
the short space Of five years Is a
striking commentary on the pros
perity of the state Of Florida.
The retirement Of the state
bonds viii relieve the general rev.
enue fund Of an interest charge
Of sis,047.00 annually. which
would amount to more than $780,
100000 during the remainder Of
the time the bonds would have
run before maturity. and as the
sinking fund bonds which will be
exchanged for the 3 per cent re-
funding bonds bear from five to
six per cent interest, the annual
income Of the educational funds
win be increased some si2,000.00
20 sl5,00o.00 a year by reason of
such exchange of bonds.
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