STATE AND LOCAL INDEBTEDNESS 71

slightly more than $90 million in 1928, or almost 609, of the
total local net bonded indebtedness in the state. In 1923
and later years the net bonded debt of Kansas City exceeded
that of St. Louis City. School indebtedness of Kansas City
is considerably larger than school indebtedness of St. Louis
City, and this fact accounts for the larger total in the case
of the former. Comparison of the city data for recent
years indicates that the net bonded indebtedness of the four
cities has been increasing at a more rapid rate than total
local indebtedness; the increase for the five-year period 1923
to 1928 amounted to almost 2009.

TaBLe 23: Missourr State AND Local Ner BonpeDp
Dest, 1928
Computed by National Industrial Conference Board

Tvpe

Sate. ......s
ocala
State and local... .

Total Net
Bonded Debt
in Thousand
Dollars

Lyf

Per
Capita

17.98
42.70
60.68

Percentage
Distribution

29.6
70.4
100.0

Ratio of Net
Bonded Debt
to Wealth
Per Cent

0.57
1.36
1.93

ComeINeD StaTE AND Locar Net BonDeED DEBT
Probably the most significant interpretations of indebtedness
 are obtained by considering combined state and local
net bonded indebtedness in relation to population and
wealth. Table 23 shows that the per capita state and local
net bonded debt for 1928 amounted to $60.68, and the ratio
of state and local net bonded debt to wealth was 1.93%.
Both of these figures are considerably lower than comparable
 figures for the United States as a whole. It appears,
therefore, that, although both the state government and the
local governments in Missouri have issued a large volume of
debt obligations and have increased their indebtedness at a
rapid rate, Missouri’s state and local net bonded debt on
a per capita or wealth basis is below the average for the
United States.

Cost or MONEY TO THE STATE oF MISSOURI
Any consideration of the cost of borrowed funds must take
nto account a number of factors. In the first place, the