56 THE FISCAL PROBLEM IN MISSOURI 
sold at not less than 959, of par! The only exception is 
that bonds issued by school districts in cities having a popu- 
lation of 75,000 to 500,000 must be sold at a price to yield 
net proceeds? equal to 90%, of par. The purpose of that part 
of the statute which refers to the sales price of the bonds is 
to give the interest rate restriction a degree of effectiveness. 
A restriction of the coupon rate of interest would be mean- 
ingless if it were possible to dispose of bonds at a very large 
discount. 
Certain local governments in Missouri are given specific 
authority to issue tax anticipation notes. For example, 
counties and cities having a population of 200,000 to 600,000 
are permitted to issue such notes in an amount not to exceed 
in any one month 109, of the estimated revenue for the 
year. The maximum issues must not exceed 909% of the 
estimated revenue of a county and 30%, of the estimated 
revenue of a city, and the notes must be payable in one year 
or less. 
The indebtedness of drainage districts is limited? to 909%, 
of their revenue as authorized by statute, and such districts 
are given specific authority® to issue refunding notes and 
bonds. 
Indebtedness of a somewhat unusual nature may be in- 
curred by special road districts. According to a law® enacted 
in 1921, such a district may issue warrants in payment of 
its expenses and obligations. They do not bear interest 
until after they have been presented for payment and pay- 
ment has been refused because of lack of funds. If funds 
are available when they are presented, they are retired at 
par. However, if no funds are available the warrants bear 
interest at 6% from the date of presentation until such time 
as funds are available.” 
1Session Laws, 1921, p. 170, as amended by Session Laws, first extra session, 
1921, pp. 38-39. 
% Gross receipts less expenses and commissions. 
3 Session Laws, 1925, p. 169. A similar statute authorizes counties of 70,000 to 
90,000 to issue tax anticipation notes. The provisions concerning amounts that 
may be issued are slightly different in the latter. 
¢R. 8. 1919, Section 4418. 8 Session Laws, 1927, p. 177. 
8 Session Laws, first extra session, 1921, pp. 170-171. 
7 The foregoing examples are intended to indicate the scope of the statutory pro- 
visions concerning local indebtedness. It is not assumed that the examples given