330 THE FISCAL PROBLEM IN MISSOURI
A comparison of the net state expenditures of Missouri
with those of eleven other states in the same section indicates
that during the period 1923 through 1928 only Minnesota,
[llinots, and Ohio had expenditures greater than Missouri.
In relation to net total expenditures Missouri expended less
for maintenance purposes than any other state used for comparative
purposes. Highways accounted for a larger proportion
of total state expenditures in Missouri than in any of the
eleven states. Since highway expenditures in Missouri were
predominantly for capital purposes, the low proportion for
maintenance is attributable largely to the highway function.
[t is estimated that the gross expenditures of all local
governments in Missouri amount to $163.6 million for the
fiscal year ended in 1928. Of this amount the four largest
cities, including school and other special districts therein,
accounted for $90.6 million.! Education and highways are
the most important local governmental functions, judged
from the standpoint of the volume of expenditures.
State AND LocaL INDEBTEDNESS
The history of state indebtedness in Missouri may be
logically divided into four periods. During the first period
there was no state debt of significant size at any time. The
second period, which began soon after the middle of the
nineteenth century, was marked by borrowing for internal
improvements, particularly for railroad development. The
third period was characterized by a conservative policy, in
accordance with which the indebtedness incurred for internal
improvements was liquidated. In the fourth and present
period, Missouri has taken a more liberal attitude toward
state borrowing. The constitutional limitations on the borrowing
power of the state government, imposed in 1875 when
the present state constitution was adopted, were amended in
1920, in order that funds mightbe obtained through borrowing
for highway purposes and for the payment of a soldiers’
bonus. In 1922 the state began to borrow on a large scale,
and the net bonded debt of the state increased from $0.70
per capita in 1918 to $7.96 per capita in 1923 and $17.98 per
1 Exclusive of payments for debt redemption.
