The Park Governments of Chicago 39 



fit by most of the interest received from deposits of their tax 

 money. The South Park treasury, on the other hand, is kept well 

 filled. 



This large cash balance of the South Park Board was not 

 made possible entirely by reason of the regularity of tax receipts. 

 A considerable amount was derived from the sale of bonds. It 

 appears that larger issues of bonds were sometimes sold than 

 were necessary at the time. For example, a $1,200,000 issue was 

 sold in July, 1907, and in July, 1909, two years later, $700,000 

 of the proceeds was yet in bank ; in fact, three years later, $600,- 

 000, one-half of the proceeds, was yet in bank. During all this 

 time the Board paid 4 per cent, interest on the bonds and received 

 only 3 per cent, on the cash deposits. It thus appears that if 

 these bonds had been issued in smaller lots and more nearly as 

 required approximately $20,000 in interest charges might have 

 been saved. 



In this connection the recent action of the Lincoln Park 

 Board in disposing of the $875,000 issue of park extension 

 bonds is commendable. Although the entire issue was sold soon 

 after the date of the bonds (May 1, 1911) only $350,000 has 

 thus far been delivered (November 1, 1911). As the bonds are 

 delivered the purchasers pay the accrued interest to the Park 

 Board. 



Although part of the South Park funds earned 3 per cent 

 interest, the larger proportion thereof was carried in a "gen- 

 eral fund" and earned only 2 per cent, on daily balances. An 

 examination of the general fund account shows that the balance 

 has been smallest at the end of each month and that these month 

 end balances were much larger than was necessary to meet the 

 demands upon the fund. For example, for the 20 months ending 

 with November, 1907, the general fund was never less than $1,- 

 000,000. (See table on page 40.) If the amount of money 

 necessary to be used each month had been estimated at the be- 

 ginning of each month and part of the excess had been trans- 

 ferred to the special fund — say in round amounts of $100,000 — 

 the additional 1 per cent, interest which might thus have been 



