The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1842-11-15

properly be regarded part of the capital of the
State, though scqucstered, like the United States de-
poste fund, to particular purpose.
The action of the Legislature at the last session.
by equivocal Indications called in question tho
wisdom of hiring money to carry on the necessary op
crations of the government, while applying the ord-
nary resources Of the State TO swell fund.- to be
joyed by future generations, who will doubtless be
exempted from the burdens which press upon the
men of the present times. 1t cannot have escaped
the notice Of the Legislature, that in the condition OF
the finances of this State from the commencement
of the fund down to the present lime, its origin was'
and its accumulation has continued to be, dependant
on direct taxation The State has surplus revenue,
but all expenses of government were met by direct
taxes The purposes Of the founders Of the fund was
to ensure the education of future generations exemp
ted from the burden oftaxes 1t is believed that the
surest guaranty for the education of poserity, is the
present diffusion Of knowledge TO the greatest rracti-
cable extent; while the purposes of avoiding the tax
ing of generation, than fifty years hence,
suits in imposing direct tax upon the Of the
present times, much greater than the tax preven-
ted, as the whole amount Of losses incident to the
fund and the expense,of keeping it on 4 loan.
Besides, were the fund now accumulated to
81 900 O0O the amount assumed to be necessary be
fore, by the provisions Oft the act, the avaiIs Of the
fund could be applied to their destined purpose, it
might here, as frequently has in Europe That
it would be dfficnlt to keep large fund safely
and constantly invested, at six per cent interest -
Should the State continue to be debtor TO this fund,
for coming years, in proportion increasing with the
fund.- for years past it has done, the subject wcud
soon an interest Of fearful Importance. The
interest of the loan could not probably be paid with
out resort to direct taxes, in which event the very
vii, designed 10 be avoided, would be enco uttered by
future generations, in form far more exceponabIe
To carry on the operations of the government, and
pay off the entire debs of the State during the
ing year, leaving the State school fund and the Uni
ted States deposite fund untouched would require
tax of 3 cents the dollar the grand list of S4I
and 10 cancel the debt ofhe State to the school fund.-
which must be done, should the Legislature enact TO
distribute it, would require tax of 10 81 cents
the dollar, includng cents for the support of govern
ment.
The school fund, when regarded rs a mere fnan-
cal operation, is obnoxious very serious objection
The three sources of revenue, sequestered to swell
this fund have never been sufficient defay the
binary expenses of government, bat resort has al
ways bcen)made to direct taxes To supply the defc-
ency of the Treasury The expense of collecting
direct is less than seven cents on the dollar
and it may be more. The losses, necessarily Incl
lent to fund loan, and the expense of its manage
ment, could not be reasonably estimated at less than
three per cent, provided it could always be safely in
vested at six per cent long lean. But even this
is not to be expected. According to this calculation
there is direct loss OF ten the dollar ON the
by the calculation, the people of Vermont may
pect to realize of the contemplated benefits of
the fund, they will have sunk $500, 900 in the accu-
mutation and management Of the fund; in other
words they will have expended 81 ,4Oo, OOO, and will
have fund Of "a ,O00,0 600 only for the support Of
schools. The whole system in its inception and pro-
gress, is founded principles, which must necessari
ly eventuate in loss Few would perceive the wis
dom of the man, who should devote long life, to
accumulate reservoir of water, above its natural lev
ell, by of manual labor, to be used by his des-
pendants for hydraulic purposes. Al would see that
the project was founded in and would result in
loss; that the dreams Of the visionary would be final
ly dissipated by the imprisoned waters seeking and
finding their natural level, and probably with dsus-
trous results And still there many points of re.
semblance between the school fund and such ,is-
ionary project.
The interest Of the State debt will he $Sl2,5l5 66
for the coming year, and the Of the receipts from
the three sources of sevenue, sequestered by the
constituting the school fund for that purpose amounts
to ,23s 27 only, leaving the of So, 277 80 to
be met by direct draught on the Treasury, to pay
the interest of the State debt
Whether if the fund accumulated to its con-
templated amount, ii would be promotvc Of the best
Interests of education, has been seriously doubted
bnt it would seem, that there could be but one opn-
ION as to the policy of accommodating money in large
masses, to be afoat on the current of time, in the
hope, that dy possibility, it might reach and finally
benefit generation to be born half century hence
While it is TO hold lure to peculaon, to
ambition and corruption, the fund is always liable 10
be suddenly dsspated, as to considerable extent,
was the case with the Smithsonian bequost.
Should the wisdom of the tn m