The fiscal problem in Missouri

Bibliographic data

Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter II. State and local indebtedness

Collection:: Economics Books

78 THE FISCAL PROBLEM IN MISSOURI cases where a large amount of bonds is issued by a local government with a particularly strong or an unusually weak credit position, differences due to the respective credit posi- tions would tend to offset one another, with the result that market conditions would be the most influential factor affecting the average rate. The modal, or most typical, rate for the four-year period was 4149%,. More than 439, of all local bonds issued bore that coupon rate. The modal rate in this instance is not so significant as the average rate, for the reason that the mode is largely the result of the predominance of 4159, bonds among those issued in 1929. Since the bonds issued at rates of 49, and 414%, when combined, exceed those issued at the modal rate, it may be concluded that, although the modal rate indicates the point of greatest density, because of the concentration at the lower rates the average is better suited for purposes of interpretation. Reference to the percentage distributions for individual years indicates that the modal rate is not particularly significant except in the year 1929. In all other years the average is to be preferred. For the year 1928 the average rate borne by local bonds issued in Missouri was 4.319%, a figure close to the average for the four-year period. This average of 4.31%, compares favorably with the average for all state and local bonds issued in the United States in that year, which was 4.44%. INTEREST PAYMENTS BY MissoURI AND OTHER STATES The interest payments made by a governmental unit in any fiscal year cannot be said to represent the aggregate cost of money in that year. Interest dates are adjusted in a manner that will accord with fiscal requirements, and as a result the payments made in a given year are not exclusively for money used in that year. At the close of a fiscal period there is an accrued interest liability on account of interest due on obligations that do not bear an interest date the same as that for the close of the fiscal period, and allowance would have to be made for this fact if interest payments were 1 National Industrial Conference Board, Cost of Government in the United States, 1927-1928, p. 55.

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