Document - process/ work product - New check printing procedures from the Federal Reserve Bank. Interest rate informtion from Moody's. - 3/15/1961Fo \.DEc�
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STATE OF MINNESOTA
DEPARTMENT OF PUBLIC EXAMINER
SAINT PAUL 1
To Town Clerks and Treasurers:
Pursuant to Laws 1953, Chapter 319, the Public Examiner designed and re—
commended for use a form of combination warrant —check or order —check for all levels
of government.
Due to this age of automation, we now find that minor changes are necessary
in order to expedite the handling or processing of these instruments.
In this connection the Federal Reserve Bank of Minneapolis has the following
suggestions which we present for your consideration.
"In order to continue the rapid, efficient handling of checks, in the face
of rising check volume, the nation's banking system has developed new methods which
involve the use of electronic machinery. A "common machine language" printed in
magnetic ink numbers and characters across the bottom portion of checks (see attached
samples) permits the checks to be read by machines.
"Under the new program all checks must be redesigned to free a 5/8" clear
band extending 6" from the right edge across the bottom of checks. Within this area
the magnetic ink printing of the routing symbol — A.B.A. number of the drawee bank is
to be placed. Attached are samples of commonly used check forms which have been re—
designed and printed according to the new requirements.
"You will note that the numbers
samples represent the routing information
of checks. Information on this numbering
par banks, can be obtained from your bank
printed in the lower band on the attached
now contained in the upper right hand corner
pattern, which is different for par and non —
or the Federal Reserve Bank of Minneapolis.
"The printing of the common machine language numbers must be performed
according to the specifications printed in the American Bankers Association booklet,
number 147, entitled "The Common Machine Languege". It is important that your printer
be thoroughly familiar with these specifications. If the check printing is done by
a local printer who has not entered the program, contact your depository bank to get
the name of a qualified printer."
you
the
We trust you will give the new program
have any difficulties in changing to the new
Check Department of the Federal Reserve Bank
your usual fine cooperation and if
check form, we suggest you contact
of Minneapolis.
s very truly,
Deputy Public Examiner
March 15, 1961
MOODY & SPRINGSTED BOND LETTER
Prepared by MOODY & SPRINGSTED, INC., Municipal Consultants, 624 Endicott Bldg., St. Paul 1, Minn., CA. 4-5349
VOLUME 4
15 OCTOBER 1960
ISSUE 10
DEAR SIR:
THE SIGNAL FOR IMPROVED RATES HAS BEEN GIVEN. THE BOND BUYER'S, STAN—
DARD AND DOOR'S AND DOW JONES' INDICES OF MUNICIPAL RATES ALL REMAINED AT THE SAME
LEVEL LAST WEEK AS FOR THE PREVIOUS WEEK. THE RULE IS NOT INFALLIBLE BUT OUR
STUDIES SHOW THAT WHEN THESE INDICES STAY THE SAME THE NEXT MOVEMENT IS IN THE
OPPOSITE DIRECTION THAN THAT PRECEDING THE LEVELING OFF.
DO INTEREST RATES REALLY INFLUENCE THE VOLUME OF BUILDING? PROBABLY
THEY MAKE SOME DIFFERENCE. IT SEEMS SIGNIFICANT THOUGH THAT THE VOLUME OF MUNI—
CIPAL FINANCING IN MINNESOTA THIS YEAR THROUGH SEPTEMBER IS NEARLY 22 PER CENT MORE
THAN FOR THE SAME PERIOD LAST YEAR EVEN THOUGH THE AVERAGE RATE OF INTEREST FOR
1960 15 4.15 PER CENT COMPARED TO 3.96 PER CENT IN 1959.
HIGHER RATES DO TEND TO SPREAD
DEBT OUT LONGER. THROUGH SEP-
TEMBER LAST YEAR THE AVERAGE
MATURITY OF ISSUES \ AS 13.51 YEARS.
THIS YEAR IT IS 14.09.
WE ARE CONSTANTLY IMPRESSED THAT LATER AND SEWER RATES ARE IN-
ADEQUATE. WHILE THERE IS JUSTIFICATION FOR LOW MINIMUMS TO AFFORD THE BASIC
REQUIREMENTS OF A GOOD DRINK OF WATER AND PROPER SANITATION TO EVERYONE, BEYOND
THAT A USER SHOULD EXPECT TO PAY FOR WHAT HE USES. IF HE BURNS EVERY LIGHT IN HIS
HOUSE HE EXPECTS HE WILL BE BILLED FOR IT. BUT HE DOESN'T SEEM TO THINK HE SHOULD
PAY FOR THE WATER WASTED BY A LEAKY FAUCET. WATER AND SEWER ARE SERVICES.
THEY ARE USUALLY FURNISHED BY THE MUNICIPALITY BECAUSE THEIR COST
HAS MADE IT NECESSARY FOR THE ENTIRE COMMUNITY TO SHARE IT. THEY
SHOULD AT LEAST SUPPORT THEMSELVES. THIS INCLUDES NORMAL REPLACE-
MENT AND EVEN EXTENSION. HILE IT IS CONTRARY TO OUR INTERESTS WE REGRET
SEEING A COMMUNITY HAVING TO BORROW SMALL AMOUNTS FOR EXTENSIONS AND REPLACEMENTS
WHEN REALISTIC RATES WOULD HAVE MADE IT UNNECESSARY. WHEN BORROWING IS NECESSARY
REVENUES SHOULD BE SUFFICIENT TO SUPPORT REVENUE FINANCING, THUS SAVING GENERAL
OBLIGATION BORROWING. THIS WOULD HELP THE SCHOOL DISTRICT TOO.
A PUBLIC UTILITY COMMISSION MAY BE
THE ANSWER TO YOUR PROBLEM. A
COMMISSION HAS ONLY ONE THING TO
DEAL WITH AND USUALLY 15 LESS
SUBJECT TO POLITICAL PRESSURES.
WE SHALL BE HAPPY TO ANALYZE YOUR SITUATION. MAYBE SOME OF THESE vvATER
AND SEvuER IMPROVEMENTS ARE NOT AS IMPOSSIBLE AS THEY SEEM.
CORDIALLY YOURS,
MOODY AND SPRINGSTED, INC.
INDEXES
BOND BUYER'S INDEX
DOW JONES INDUSTRIAL AVERAGES
U. S. TREASURY BILLS (91 DAYS)
HIGHEST MINNESOTA MUNICIPAL BOND RATE
FOR PREVIOUS 30 DAYS
LOWEST MINNESOTA MUNICIPAL BOND RATE
FOR PREVIOUS 30 DAYS
AVERAGE SIZE OF MINNESOTA MUNICIPAL OFFERINGS
FOR PREVIOUS 30 DAYS
AVERAGE RATE OF MINNESOTA MUNICIPAL OFFERINGS
FOR PREVIOUS 30 DAYS
SEPTEMBER 15 OCTOBER 15
3.44
602. 69
2. 654
4.25
2.95
$350,392
3.70
3.55
596.48
2.473
4.10
2.78
$348,440
3.58
THE FOLLOWING IS A LIST OF ALL MINNESOTA BOND SALES, EXCLUSIVE OF ST. PAUL,
MINNEAPOLIS AND DULUTH, FROM SEPTEMBER 15, 1960, TO DATE:
MUNICIPALITY
CHOOL SALES
BROOKLYN CENTER
Pi PESTONE
MOORHEAD
ROCKFORD
FERGUS FALLS
DATE SOLD TYPE
SEPT
SEPT
SEPT
OCT.
OCT.
CITY AND VILLAGE SALES
19
22
28
6
11
AUSTIN SEPT 19
MOORHEAD SEPT. 20
WABASHA SEPT 22
ROSEVILLE SEPT 22
MAPL"WOOD SEPT 26
MAPLEWOOD SEPT 26
EDINA SEPT. 26
HAWLEY SEPT 26
ST. PETER SEPT 26
HERMAN SEPT 27
BRECKENRIDGE OCT. 3
BRECKENRIDGE OCT. 3
COLD SPRING OCT. 4
ISLE OCT. 4
NORTH ST. °AUL OCT. 5
SLEEPY EYE OCT. 4
RED WING OCT. 6
BRAI NERD OCT. 11
NEW GERMANY OcT. 11
COUNTY SALES
BROWN COUNTY
GRAND TOTAL
PREVIOUS 30 DAY TOTAL
SEPT 21
SCHOOL
SCHOOL
SCHOOL
SCHOOL
SCHOOL
ST.-AID STREET
C. I's.
IMPROVEMENT
SAN. SEW. IMPR.
STREET IMPR.
SAN. SEW. IMPR.
IMPROVEMENT
WATER -SEWER IMP
IM PROVEMENT
WATER WORKS
SWIMMING POOL
IMPROVEMENT
IMPROVEMENT
CORPORATE PURR.
WATER REVENUE
P, U. R. CERT'S.
IMPROVEMENT
FIRE EQUIP -IMP.
WATER
DITCH
$8,711,000
$9,811,000
MATURR
1963-90
1963-81
1963-90
1963-82
1963-88
1962-77
1962-71
1963-78
1961-80
1963-70
1963-81
1962-70
1962-86
1962-71
1963-79
1962-67
1963-82
1963-75
1963-72
1961-73
1961-68
1962-66
1963-69
1962-81
AMOUNT RATE
$ 850,000
700,000
400,000
96,000
805.000
$2,851,000
4.05
3.48
3.88
4.10
3.73
$ 380,000 3.31
50,000 3.17
35,000 3.49
1,000,000 4.08
60,000 3.61
400,000 3.97
1,800,000 3.28
150,000 4.00
80,000 3.00
150,000 4.07
30,000 3.27
248,000 3.85
130,000 3.58
40,000 3.84
125,000 3.50
200,000 3.20
85,000 2.78
35,000 3.02
62,000 4.03
$5, 060, 000
1963-80 $ 800,000 3.24
MOODY AND SPRINGSTED, INC.