272 THE FISCAL PROBLEM IN MISSOURI 
of the highway system, which has been financed very largely 
by means of bond issues, and the failure of the state to 
provide for its institutional requirements. Perhaps the 
difference is attributable to the fact that in the latter case 
financing by means of a bond issue has not been considered. 
It is easy to postpone the construction of institutional 
buildings on the ground that the revenues are inadequate, 
and strict adherence to a non-borrowing policy under such 
conditions must in time result in circumstances that will 
make it necessary to consider borrowing as a way out of the 
difficulty. While it is not always easy to obtain sufficient 
current revenues to meet capital needs, there can be no 
question that after a bond issue had been floated a state 
enjoying a credit position as excellent as that of Missouri 
would meet the necessary payments required for debt ser- 
vice. In other words, strict adherence to a pay-as-you- 
go policy may result in a considerable degree of pro- 
crastination, while payments for debt service may be pro- 
vided without great difficulty. That such is the case in 
Missouri is indicated by the rather sharp contrast between 
capital provision for highways and that for penal and 
eleemosynary institutions. 
Revenue NeepeD UNDER Pran or Bonp Financing 
The discussion in this section is based on the assumption 
that Missouri will seriously consider the issuance of bonds 
in the amount necessary to finance the present deficiency in 
institutional and other capital needs. The computations 
which comprise Tables 84 and 85 are based upon the amount 
of $40 million.! These computations, however, are just as 
applicable to any other sum as they are to $40 million. For 
example, if it is decided to issue $20 million or $30 million 
of bonds, all that is necessary to obtain a picture of the 
amounts required is a proportionate reduction of the 
amounts shown in Tables 84 and 85. 
If bonds are issued, the period of maximum maturity will 
probably not be less than twenty years nor more than 
forty years, and Tables 84 and 85 have been compiled on the 
1 See Appendix B.