Milford chronicle., 1960-09-30
TO SAVE SCHOOL MONEY

III SAVE SCHOOLS MONE1
An astringent new report on public school
fiscal policies merits careful study by school
boards, administrators and the interested
public. Although this report was made by
New York University experts under con-
tract to the New York State Education De-
partment, number of its recommendations
might readily be applied in communities
throughout the country.
One of the main contention in the report
is that large sums could be saved annually
if more fiscal responsibility were shifted
from local school districts to the state. AS
an example, it is noted that if local school
bond issues were backed by the states credit
rather than by that of individual communi-
ties (whose credit rating may not be as
good as the state's) this would often result
in lower interest rates. Fire insurance prem
iums, too, would be substantially lower if the
state were to underwrite local fire risks. The
report also points out the financial advan-
tages of central purchasing and central
school planning.
These are highly controversial recommen-
dations. They will encounter strong OppOSl-
ton, partly because they threaten to pinch
the pocketbook nerve of investors and local
interests which profit by doing business with
the schools. Opposition, or at any rate sus-
picion, also is likely to be stimulated in some
communities by the feeling that there is here
somehow a threat to local control over the
schools.
That may be- The matter should be dis
missed But it would not be wise to dismiss
the New York University findings without
careful thought as to how they might save
local school money. Generally speaking, it
would be better to effect savings as suggest
ed above rather than by er-ecOnomiZing on
equipment or teacher salaries.
NSoNS
ELECTIONS AND STOCK PRICES
What happens to the best stock market
in Presidential election years?
That's an interesting question, in view
of the fact that more than IL million people
now own stocks and the number is steadily
increasing. However, clear cut answer
simply is not possible. The Exchange maga-
1910, 1914, 1948, 1852 and 1856 finds moth
ing that would establish an overall election
year pattern.
In 1910, by way of example, war devel-
opmentS dominated the market and the years
low was reached in the grim days of mid
June. Recovery set in and lasted until Pres
ident Roosevelt's reelection for third
term. The market dropped briefly, then lev
eled.
In 1914, it advanced, only to take mo-
mentary dip after Mr.. Roosevelt's fourth
term victory Then it picked up a little
steam.
In 1948, there was sharp decline after
Mr.. Truman's victory. In 1852, by contrast,
President Eisenhower's win had no in1med-
late affect on the market. But a recovery
that had started that May gained momentum
and the market closed at the years high
Prices declined after Mr.. Eisenhower's
reelection in 1856. But rally got under
way within few days and lasted to the end
of the year.
This is certainly mixed pattern. The
Exchange sums up by saying that the mar
ket is influenced more by deep-seated eco
nomic factors than by political considera-
tions. The latter may have an effect but it
seems to be minor one in the long-term
view.