Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1843-07-07
STATE SCHOOL FUND.

NO. ~.
In previous number we have said, that the
Stale School Fund owed its origin TO the Ola YER
mont State Bank, and That the act Of 1926 eslnb-
fishing that und, was designed ms shelter to plo'
tecl the scattered fragments OF that institution.
"Thc act constituting this fund provides, that
'uni the same shall amount 10 sum, which shal
yield an annual interest or income, suihclcnt TO
delray The current expenses OF keeping Sooh iree
common school, in each district in the several
towns, for period Of Two MONTHS it shall not be
expended or appropriated 10 the Use OF common
schools. Admitting the number OF towns IN the
State to be $40, and allowing IL districts 10 each
town and G5S 50 as the expense o keel irg a good
free common school for two months Ia each year,
and it would require II capital of Sl,OOOOOO yield
ing an income of six per cent per unnnm, making
no deductions for loss or expense OF managing The
fund, before the people of this State could expect
TO realise any Of the benefits contemplated IN The
establishment of this fund. The AUDITORS report
in The Treasury Department, in Nov. lol l. show
cd the Fund in round numbers TO he Sl6l,UUO,-
1t had then been accommodating sixteen years, aud
it would require fly-five years more, before that
sum- at compound interest, would amount to S!-
100000 or very nearly. This sum would DC
required, to yield the necessary amount OF annual
interest. In this calculation no allowance is made
for increment Of population, though at The rate OF
increase, us exhibited 10y the census, for the last
twenty years, it would have accumulated more
than twenty per cent. This possible increment OF
population, aud the indefinite sum required to
keep school two months in The year, may posi-
bly, outrun the yearly additions mnde to The fund,
and thus much further delay the period, desiglu-
ed for The distribution"
In 1S42 the nominal amount Of the fund was
SlG4SG6 49, aud the debt due The fund from the
State was sl5I,4l7 0S which deducted from the
nominal amount will leave The sum OF 33,4o
us the present actual available amount OF tie
fund. Eighteen years has elapsed since the nu
rlp OG bIishp
have the actual result Of accumulation, unless we
add the $l5l Az 0S being the debt due TINT fund
by The State. Bot there is no more propriety in
considering that debt part OF the fund, than OF
nvenlorying mortgage of mans farm, MS
part of The mortgagors properly. In both cases
the money is used, expended, gone, and not to be
recovered, but by the same slow process, by which
the one was earned, and the other accumulated.
But it is said the State owe the fund. BE 1t so,
but let us look at the subject as 1t viii be found 10
he ia practice. This State debt has no resources
but in direct taxation, and The amount Of This debt,
If ever paid TO the fund, to be raised de moro,
and thus leaving US, far us the debt is coucern-
ed, precisely in the same place where we started.
II from the data assumed in the Auditors report
of 1912 it will require filty-four years for Sl64
000 at.compound interest, TO amount to 4OOUOOO
it will require something more than 26O years for
the present available residue Of that fund to u
mount to that sum, may be seen 10y any one,
who will take the trouble to make the calculation.
1t is assumed in this calculation, that subsequent
legislatures shall extend TO the fund the same
paiernat protection which it has received for the
last eighteen years Should the Legislature adopt
IA course of taxation to pay off this debt TO the
fund, The mere expense OF collecting ME tax at
per cent. would be $40, 500 pa This sum
would be sunk in the attachments and in collectors
fees and would never reach the fund.- Tic TAX
paying community will therefore be called OH to
advance 1906 80, 10 reinsale the school fund
IN the position il would have occupied, but for
for the loans the State, for building the State
house and for expenses other than the ordinary
expenses Of the government. The facility of OBJ
tanning money is fruitful occasion of eXrava-
gance in governments, well us in individuals.
But for The aid of the school fund, the expenses of
erecting the State House could not have been
met. A fund, accessible by The Legislature, will
be ever ready 10 encourage that body 10 make
liberal appropriations, for any object strongly COM
mending itself to their judgment or spmPathes
When n government has other resources 10
supply its pecuniury necessities. than direct taxa
lion, 10 expense ought TO be incurred by the leg
islaure, which would not justify direct tax upon
upon The peoples
AUDITOR.