76 THE FISCAL PROBLEM IN MISSOURI It may be concluded that during the period in question Missouri was able to dispose of its debt obligations under circumstances that resulted in a very moderate cost of money. Market conditions were favorable during most of the period, and the tax exemption feature helped to keep down the cost of money. The most significant factor, how- ever, was the excellent credit position of the state, together with the fact that in floating the highway bonds ample pro- vision was made for the receipts necessary to meet interest and principal payments, which carried an assurance that the high credit standing of the state would be maintained. INTEREST RATES oN LocaL Bownbps It is to be regretted that the cost of money analysis as applied to the receipts from the sale of state bonds cannot be used in the case of bonds issued by Missouri local govern- ments. Such an analysis would unquestionably be most instructive, but the requisite information concerning sales prices and maturities is not available. However, informa- tion concerning the coupon rates of interest borne by local bonds issued is accessible, and in lieu of an analysis based on actuarial computations of the cost of money, Table 26 was compiled. This table, while indicative of the cost of money, cannot be used to draw conclusions of so definite a nature as those arrived at in the case of state bonds. If it were assumed that the coupon interest rates on local bonds are adjusted to market conditions so that on the average they will be dis- posed of at par, the average rates as given would be the approximate cost of money expressed as a percentage of the principal sum, but such an assumption is perhaps too liberal, and for that reason the discussion will be confined to coupon rates as such. The average coupon rate of interest borne by bonds issued by Missouri local governments during the years 1926 to 1929 was 4.35%,. The highest average rate in any year was 4.539, for 1929, and the lowest was 4.189, for 1927. The average rates are influenced by several factors, the most im- portant of which perhaps are bond market conditions and the credit position of the issuing governments. Except in