Consolidated Fund

“ No moneys shall be withdrawn from the Consolidated Fund except to meet expenditure that is charged upon the Fund by this Constitution or any Actor or where the issue of those moneys has been authorised by an Appropriation Act or an Act passed in pursuance of section 114 or in accordance with any other law. ”

“ The money, it was decided, should come out of the Consolidated Fund, that being considered the simplest way of dealing with the matter, more especially as of late years there has been a considerable surplus of revenue over expenditure, and there appears to be every probability that that surplus will be sufficient to provide the amount required without increasing the burden of taxation. ”

“ The Treasury may issue out of the Consolidated Fund of the out of the United Kingdom of Great Britain and Ireland, and apply towards making good the supply granted to Her Majesty for the service of the year ending on the thirty-first day of March one thousand eight hundred and ninety-seven the sum of twenty-seven million four hundred and forty-two thousand two hundred and seven pounds. ”

“ It would take the place of the present United States bonds as a lazy fund, and it would not be a lazy fund, for it would be an investment in earning property. It would substitute the earned increment of labor for the unearned increment of interest. Interest on money at best belongs to conditions which are passing away. It is an attribute of a former civilization, and I predict that during the next century it will come to an end altogether.”
“How would the United States Consolidated Railroad Company affect railway patrons and railroad employes?” ”

“ A revolving loan fund should be provided for the necessary financing until these agencies shall have developed means of financing their operations through regularly constituted credit institutions. Such a bill should carry authority for raising the money, by loans or otherwise, necessary to meet the expense, as the Treasury has no surplus. ”

“ This sum, together with government subsidies and other sources of income, will yield, we are told, a gross income of 438,000l.: a sum which it is estimated will not only pay working expenses and a handsome dividend to both old and new shareholders, but will yield a balance for a reserve fund, more than sufficient to lay a second cable in every two and-a-half years. ”

“ While the number of units credited to investors does not accordingly account for the entire value of the 'fund,' the value of the units fluctuates as the value of the company's investment portfolio fluctuates in the same fashion as if they were shares in an open-end investment fund.↑ The surcharge is accounted for in the same way as that part of the premium gross income that does not go toward the crediting of accumulation units. ”

“ The difference between their sum and the total of advance payments and other income, then becomes the 'overpayment' or surplus fund for immediate pro rata distribution among policy holders as dividends or for such future disposition as the contracts provide. An 'annual dividend' policy holder receives his proportionate part of this fund each year in cash or as a credit upon or abatement of his next premium. ”

“ It could be covered immediately by a reissue—share for share—of the reorganization stock of the P. S-W., which would amply secure the investors, since the stock of the most prosperous of the three local roads was listed at twenty-eight, ten points lower than the present market quotation of P. S-W.
The thirty million dollar extension fund might be raised by issuing second mortgage bonds upon the entire system, or the new line itself could be bonded mile for mile under a separate charter. ”

“ From the statement of the Auditor it also appears that under the sinking-fund act the net earnings at the disposal of the company for the last fiscal year would have amounted to $4,016,383.04, and that this sum would have enabled the company to pay interest on all its bonds, land-grant, sinking-fund, and bridge bonds, and dividends on par value of its capital stock of very nearly 6 per cent. ”

“ A proportion of ten to one between capital and aggregate demand obligations would probably be justified by American experience. The present practice of fixing the surplus fund at twenty per cent of the capital would be justifiable if the capital fund were properly regulated in amount. ”

“ The fund will be invested safely, for it will be based upon the security which is the creator and conservator of all property and property rights, industrious and intelligent labor. The accretions to the fund, even at the moderate rate of interest of three per cent per annum, will add, probably, a thousand workers each year to the number of its beneficiaries, while the repayment and re-investment in similar ways of the original fund, will add several thousand more each year. ”

“ With net earnings of $12,000,000, and fixed charges of $8,000,000, there will remain a dividend fund of $4,000,000, equal to 6 per cent on the share capital, and 6 per cent upon the par, or 20 per cent upon the issue price, of the deferred income bonds. ”

“ Even where no restrictions on future bond issues are imposed, it is highly advisable that some provision for future capital requirements be made, and that the management have at its disposal a fund of bonds issuable without the approval of stockholders in each case. ”

“ If they be invested in safe securities at the usual rate of about 4%, the addition of this amount of compound interest will assist in the repayment of the capital at the due date, so that the annual contributions to a sinking fund need not themselves aggregate the total capital to be restored, but may be smaller by the deficiency which will be made up by their interest earnings. ”

“ A maximum of returns in the shape of profits or dividends will be fixed by law. The community itself will undertake the furnishing of credits, loans and necessary capital for the establishing of a new business, charging a small rate of interest and maintaining a reserve fund to meet these operations. Private banking, insurance and the loaning of money on collateral will cease to exist. ”

“ The Board of Directors may decide, by simple majority, to distribute a dividend to the ESM Members if the amount of paid-in capital and the reserve fund exceeds the level required to maintain the lending capacity of the ESM and proceeds from the investment are not required to avoid a payment shortfall to creditors. ”

“ By the terms of the contract between the commissioners on the part of the State and the purchasers of the bonds, the interest on the loans is required to be paid semiannually out of the semiannual dividends accruing upon the said stock; and the surplus of such dividends, after paying the said interest, is to be converted into a sinking fund for the payment and liquidation of said loans. ”

“ In any fiscal year in which the General Reserve Fund does not maintain the required percentage of general fund revenue, monies from the Capital Reserve Fund first must be used, to the extent necessary, to fully replenish the General Reserve Fund. ”

“ As this increase cannot be kept down by payment unless voluntarily made by the corporation, the next best thing has been done, that is to say, a fund safely invested, which increases as the debt increases, has been established and set apart to meet the debt when the time comes that payment can be required. ”

“ The legislature shall provide for a unified investment program for public funds and public retirement system and state compensation insurance fund assets and provide rules therefor, including supervision of investment of surplus funds of all counties, cities, towns, and other local governmental entities. Each fund forming a part of the unified investment program shall be separately identified. Except as provided in subsections (3) and (4) , no public funds shall be invested in private corporate capital stock. ”

“ The bill passed both houses without a division. The highest expectations were founded upon it, for people generally, in common with Pitt himself and Price, regarded the new fund as an infallible means of discharging the national debt solely by the uninterrupted operation of compound interest. That the application of surplus revenue to the payment of debt is sound finance, and that to treat surpluses designed for that purpose as a separate fund is a convenient arrangement need no demonstration. ”

“ United undertakes to invest the 'Flexible Fund' with the object of producing capital gains as well as an interest return, and the major part of the fund is invested in common stocks. The purchasers, at all times before maturity, is entitled to his proportionate share of the total fund and may withdraw all or part of this interest. The purchaser is also entitled to an alternative cash value measured by a percentage of his net premiums which gradually increases from 50% of that sum in the first year to 100% after 10 years. ”

“ It is coming to be a recognized principle that every business enterprise of [9] whatever kind or size should establish a reserve fund. It is felt that the possession of a reserve fund puts the business upon a secure foundation, adds to its financial strength and reputation, and greatly increases its credit and borrowing capacity. ”

“ Now with this theory in view, our company gets to work and canvasses the country and it gathers together thousands of little, useless, insignificant, unproductive funds like yours and mine and joins them together into one vast, giant aggregate which we call a trust fund. ”

“ The reserve fund was created to meet the losses of bad years and equalize dividends when profits were small, the provident fund to take care of the sick, the disabled and the families of deceased laborers. After five years the manner of division was changed so as to yield 2 per cent, dividends on wages for every 1 per cent, on capital, and in place of a fixed per cent, for the special funds whatever was necessary for these purposes was to be paid out of gross profits. ”

“ New arrangements have been made to provide facilities for the financing of industrial development and to meet particularly the credit needs of small merchants and farmers. First, a special trust fund of P10,000,000 has been set up for the special account of the counterpart fund to guarantee a large share of the risk to be assumed by banking institutions granting industrial loans. ”

“ The yearly saving is also approximately double the $1,010,000 which the sinking fund calls for, so that the net gain to stockholders from the reduction of the preferred capital is $990,000 a year. Looking into the distant future the saving after the bonds are paid off in forty-two years will be $10,500,000 annually. ”

“ There is little in the solution to which attention need be directed. In the handling of the capital stock items, it will be noted that only $300,000 of Company Y’s stock is eliminated, the remainder of $200,000 being shown on the consolidated balance sheet as a minority interest. In eliminating Company Z’s capital stock, it becomes necessary to bring a good-will item of $100,000 onto the consolidated balance sheet. ”

“ The syndicate plan was to be carried through without foreclosure, providing sufficient assents could be obtained, and was to be modified by the substitution of first, second, and third 4 per cent income bonds for preferred, income, and consolidated 5 per cent stock. Dividends on the bonds, like those on the stock, were to be payable from net earnings only; but net earnings were defined as the profits derived from all sources after paying operating expenses, taxes, and existing rentals, guarantees and interest charges, but not fixed charges of the same sort subsequently created. ”

“ It ought, we think, to be regarded as one fundamental law, that whatever has been gained by the seven years’ establishment of the Fund, should not be lightly perilled by bold and untried innovations. True, there may, on the one hand, be danger, if let too much alone, that its growth should be arrested, and of its passing into a stunted and hide-bound condition, little capable of increase ”

“ The membership of the Stock Exchange is limited to eleven hundred, and the privilege is so highly esteemed that as high as $32,000 has been paid for the opportunity to take the place of a retiring member within the past year. An excellent feature of the institution is what is known as the "Gratuity Fund," out of which the wife, children, or other nearest relatives of a deceased member are paid the sum of $10,000, to provide which each surviving member is assessed $10 upon the death of one of their number—a tax which is always paid with sympathetic readiness. ”

“ The funds in the general obligation debt sinking fund and the guaranteed revenue debt common reserve fund shall be as fully invested as is practicable, consistent with the requirements to make current principal and interest payments. Any such investments shall be restricted to obligations constituting direct and general obligations of the United States government or obligations unconditionally guaranteed as to the payment of principal and interest by the United States government, maturing no longer than 12 months from date of purchase. ”

“ The differences between the investment fund that the Comptroller has authorized and a conventional open-end mutual fund are subtle at best, and it is undisputed that this bank investment fund finds itself in direct competition with the mutual fund industry. One would suppose that the business of a mutual fund consists of buying stock 'for its own account' and of 'issuing' and 'selling' 'stock' or 'other securities' evidencing an undivided and redeemable interest in the assets of the fund. ”

“ Banks organized under this act must put ten per cent of their profits into a surplus fund until said fund amounts to twenty per cent of the capital; must invest at least twenty-five per cent of their capital, if it is less than $200,000, and at least $50,000, if it is $200,000 or more, in government bonds; and may deposit said bonds with the Comptroller of the Currency and receive circulating notes to the amount of their par value, provided their market value is par or above. ”