Any legally authorized bond issued by village, township, city, county, State, or any territorial subdivision of the same, the payment of which must be accomplished through the collection of taxes, assessed upon the property embraced in the division or subdivision issuing the bond.
Read the matter under "Attorney's Opinion" and apply in the purchase of a bond of this class. Other facts to be ascertained are: The "net indebtedness" ¹ - considering this from the standpoint of its ratio to the "assessed valuation" - what revenue producing property is owned, whether or no there is a sound "sinking fund" plan or other method established for the ultimate payment, rather than "refunding" the indebtedness, the past financial standing of the municipality, and the length of time since there has been - if ever - default in its obligations. If there has been one, the reason of it should be ascertained and judgment taken accordingly. Then one should consider the character of the population, and the class of citizens administering public offices, and who are likely to do so in the future. There is good reason for not buying bonds of a city cursed with frequent strikes, and dependent upon one class of industry. A city wholly dependent upon the lumber business is not a good risk, for example. Is the community experiencing a " boom? " If so, be sure that its debts are not being contracted along the same lines. Also consider the surrounding country and its resources, and the likelihood of the municipality in question growing or losing in population. There are so many things to be considered in selecting a bond of a municipality whose credit is unknown to the purchaser, that but a general idea can be given here. The circulars of bond houses set forth with much exactness most things necessary to know. They should be studied with care, and thoughtful inquiry made of business conditions and resources of the place under consideration.
If the reader is entirely inexperienced in the purchase of this class of securities, then the perusal also of such subjects as "Legal Investment for Savings Banks," "Bond Values Tables," and "Net Return upon the Investment" is advised.
Upon the whole, municipal bonds are about as good a field for the safe investment of funds as any. The percentage of loss within the last twenty-five years has been but small For this, credit is due the dealers in such securities who have been largely instrumental in improving the laws regulating their issuance in many of the States, and who have forced the municipalities to live up to them, and who have offered but little encouragement for too excessive debt creating even where legally permissable.
Mutilated Currency, Redemption, of. Those desiring to have currency redeemed which has been mutilated are advised to write to the United States Treasury Department for instructions, as there are certain rules and conditions with which it is necessary to comply, and which can be had in printed form.