46 THE FISCAL PROBLEM IN MISSOURI
debtedness whatever. The complete liquidation of the
bonded debt was gradually accomplished, as a result of a
policy that was adopted immediately after the close of the
Civil War, when a funding act was passed in accordance
with a constitutional amendment that had been approved.
The principal and accumulated interest of the state debt,
less certain offsetting assets, amounted to approximately $25
million on January 1, 1868. In consequence of the liquida-
tion policy, a downward trend was almost immediately in
evidence. By 1870 the debt had been reduced to $20.9
million, and on December 31, 1880, it was $19.5 million.!
During the following decade the net bonded debt was re-
duced by more than $10 million, but the reduction in total
net debt amounted to a little less than $8 million, since the
debt to public trust funds had increased during the ten-year
period. At the turn of the century Missouri’s net total
indebtedness amounted to about $6 million, and the net
bonded debt was only $1.7 million. On December 31, 1902,
sinking fund assets, as noted, exceeded the bonds outstand-
ing, and from that date until 1912 the state had no net
bonded indebtedness. During these years the state debt
consisted of school and seminary certificates of indebtedness
and small amounts of floating debt in certain years. In
no year did the total exceed $5 million.
From 1912 to 1921 the state debt varied within narrow
limits. At the end of 1912 the total net debt was less than
$5 million; five years later it amounted to only a little over
$7 million; and on December 31, 1921, it was reported as
$5.9 million? Additional bonded indebtedness was incurred
for building purposes, but the amounts involved were
relatively small as compared with the borrowings of more
recent years. Since the state did not consciously adopt an
extensive borrowing policy until 1920-1922, the years from
1912 to 1921 are included in the third period.
The fourth or current period, beginning in 1922, whichis
treated in detail in another part of this Chapter. 1s marked
1 United States Bureau of the Census, Wealth, Debt and Taxation, 1913.
2 The net bonded debt was only $1.5 million at the end of 1921.
8 Occasioned by the burning of the state capitol.
$3.500.000 of indebtedness was approved for rebuilding the state capitol.
