STATE AND LOCAL INDEBTEDNESS 47

by certain features that distinguish it from the preceding
period. After the close of the World War Missouri gradually
became aware of the fact that, if the highway system of the
state were to keep pace with developments in other states,
an extensive construction program would have to be undertaken
 at state expense. Accordingly a constitutional amendment
 authorizing $60 million of state highway indebtedness
was submitted to the voters, and it was approved November
 2, 1920. The current period in Missouri's debt history
might be said to have begun with the approval of this amendment,
 but since the first bonds were not issued until September,
 1922, that date has been taken as marking the actual
beginning of the period. The current period differs from
the preceding one principally in that recognition is given to
the benefits that can be made immediately available through
recourse to public borrowing. Although borrowing has been
confined mainly to the highway function, the volume of
indebtedness that has been incurred for this function alone
implies a radical change in the system of financing state
activities, as compared with the preceding period. The
principal reason for this fundamental change is found in
economic development, particularly in the changes occasioned
 bv the growth of motor vehicle transportation.

ConsTiTUTIONAL LIMITATIONS OF STATE AND LOCAL
INDEBTEDNESS

The present constitution of the State of Missouri was
adopted in its original form by a vote of the people October
30, 1875, and went into effect one month later. During the
half century and more from 1875 to the present, numerous
amendments have been approved, several of which have
involved a liberalization of the highly restrictive debt policy
of the state as laid down in the fundamental law. The third
period in the history of Missouri's indebtedness began not
many years before the date on which the constitution was
adopted, and that period as a whole was characterized by a
successful liquidation of the state’s bonded indebtedness. It
is not surprising, therefore, to find that the constitution of
1875 provided that the credit of the state should be care-