Evening star., 1932-12-18
TAX-EXEMPT BOND
ISSUES IN DEMAND
Long.Term Government and
State Offerings Find
Ready Market.
Special Dispatch to The Star.

NEW YORK; December 1.-THE new
high prices recorded this week for long
term Government bonds and the ability
Of New York State ON Wednesday to
sell its obligations close to q 3 per cent
basis are additional proof Of the dis
elimination by investors against taxable
securities and their increasing prefer
ence for loans whose credit rests on the
taxing power Of the Government or of
political divisions.
The history Of the development Of the
New York State debt to the period last
year where the gross funded debt was
over SAIL 100000 and the net funded
debt nearly $500 ,000, 900 is an interest
ing one. In the years 1892 to 1895, in
elusive. the State had no debt. Between
1896 and 1899, 100000 canal and
$500, 900 park bonds were sold. There
was then an issue Of $500,000 public
defense bonds, as that was the year OF
the Spanish-American War.
Expansion Of Debt.
tionary untn 1907, when it began TO
expand rapidly, By y oHs 1912 2ot the gross debt
the period Of heavy financing for the
New York State barge canal and con-
tinued until 1917. Today there is out
standing against this waterway, In
canal and canal terminal bonds, ap-
proximately s150,000,0G0.
The second great addition to the New
York State debt resulted from its high
way program. This began on sub
stantial scale about Is years ago. The
subsequent issues specifically designated
as highway bonds are now outstanding
in the amount Of about 100000, 900.
From 1915 to 1925, inclusive, the gross
debt of the State rose from $196 400, 900
to S318,471 900 and the net debt from
s148, 100000 to over 1927, 100000 There
had been. between 1923 and 1925, au-
thorizations by the Legislature, on ap-
proval of the voters. of large bond issues
for hospitals. State parks and for the
payment OF bonuses to residents Of New
York who had seen service in the World
War. There are outstanding 2, nov low of OF
and s45, 900, 900 of State institution
bonds.
In 1925, also. the voters approved the
creation Of debts, not exceeding $780,
100000, to provide money for the elm
ination of railroad grade crossings
within the State. The cost Of this con-
struction was to be borne equally by
the railroad benefited and by the State
and county in which the crossing was
located. This work has proceeded
slowly OF the total issue authorized
only about 10 per cent has actually
been issued. From 1928 to 1881, in
elusive, six issues Of general State i'm
provement bonds aggregating over $685.
100000 were brought out and, last year,
S20,000,000 Of emergency construction
bonds. In the meantime the income
tax rate in New York State has been
radically increased as an Offset to de-
creases in other sources Of revenue,
notably that from the stock sales tax.
New Jerseys Debt.
The State debt of New Jersey has de-
veloped within the past 10 years. The
greater part of it has been incurred to
finance the building of highways and
bridges and for soldiers compensation
There are outstanding S12000.000 of
soldiers bonus bonds issued in 1921 and
nine issues Of Holland Tunnel and
Camden bridge bonds that were brought
out between 1921 and 1926 and are out
standing in the aggregate amount oi
s36 100000. There are s20,00O,O0O of
highway improvement and $31 ,OOO, 900
Of road bonds. $4,000 900 Of bridge
bonds and s300c0,000 of bonds desig-
mated as for the purpose of financing
bridges. vtaducts and tunnels. Bonds
that were sold this week are part OF
the block Of $20.00O,000 authorized for
relief in the November election and
converted for relief purposes from the
original $4,000, 900 issue that had been
approved by the voters in 1880 for high
way construction.
(Copyright, 1897