Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1845-10-16

which promise a return Of pecuniary profit; bui
what are such investments, IN comparison VIII
those which, in the process OF educating com
munty to virtue and intelligence, intuse into it the
great and indispensable elements of solid and on
during prosperity.
/ commend this whole subject to your earnest
consideration, under full persuasion that an ava
kened and greatly advanced public sentiment viii
respond hearty approval to your favorable action
on it.
| cannot leave the subject Of common schools,
without devoting few moments attention TO what
is familiarity denominated "the Scnooi ruhu, =
The foundation ofthis fund was laid IN 1879, wneh
the General Assembly passed an ACT sequesteI'ls
and granting TO the respective towns In the state,
for the beneft of common schools, the amount OF
the avas. accrued, and thereafter to accrue, to
the State from the Vermont State Bank, and also
the amount of the State funds accrulng from the
six per cent on the nett profits of the banks, re-
ceived and to be received, and the amount recev-
ed and to be received from licenses to pedlars. 1t
was provided that said funds with the annually ac
crung interest, should be invested in approved
bank stocks, or other productive securities" and
should not be appropriated to the use of schools,
until the amount should increase to n sum, whose
annual interest should be adequate to defray the
expenses of keeping good free common school,
in each district in the State, for the period Of two
months.
The State Treasurer was constituted commits
sioner for the management of the fund who there
upon proceeded to invest the same, by loans, for
the purpose contemplated in the act
By an act passed in the year 1888, further loans
from the fund were prohibited, and the Treasurer
was directed to deposit the same in the treasury,
as it should be received, and to keep an account
thereof, and annually charge the State with the in
terest on the money thus deposited which, it was
declared, "sha be considered as borrowed from
She fund; y and the Treasurer was authorized and
directed to pay out said money on any appropria-
tons authorized by law"
Under the operation of this act, and principally
in connection with the expenditure of $4,000,
for the erection Of the State House, the State, from
time to time, has become indebted to this fund, I'M
til the Indebtedness amounts, including the
accumuatons of interest," to the sum of 1924 300 so,
while there is due to it from individuals the sum of
SlO,59O "a; making an aggregate Of 1921 300 IA.
The expediency of continuing this fund has
long been questioned. Upon full consideration,
deem it my duty to bring the subject to your no.
tlce and to submit the question, whether any pres
-ent or prospective interest OF the people requires
that 1t be continued.
The first question to be considered is, when will
the fund become available for the use of schools :;
that is, when will the annually accrung interest be
adequate TO defray the expenses of keeping a,
good free common school, in each district in the
State, for the period of two months"
The number of school districts in the 240 towns
in the State-taking the returns of last year from
l59 towns, which gave 1909 districts, as the basis
Of calculation-may be estimated at 1880. If it
be assumed, for the purpose of the calculation that
by the time the fund will become available the |
number of the districts will have increased ten per
cent on the present number-which may be re-
garded as not an improbable increase within thirty
three years-we shall have 5000 districts TO be |
provided, from the avails of the fund, with good
school, two months in each year. Estimating the |
expense ofkeeping such school two months, in the |
then advanced stage of educational Improvement at |
$40, there would be required the sum of $40 900,
as the accruing interest of the fund.- to render it a.
valuable; which is the interest, at six per cent. on
S2,000000
H'he question now arises-within what time will
the fund probably accumulate to $2,00OOO0? Its
present amount is 1884, 800 44-the annual inter-
est on watch, at six per cent? is Sl4,094 o. The
average annual income from the six per cent of
bank profits, for the last six years. has been So 500
30; and from pedars licenses LAG 50; amount
ing to S4,SI6 80; which may be assumed as the
annual addition to the fund.- hereafter, from these
sources. The avails of the Vermont State Bank
have nearly ceased to add anything to the fund.-
and should not be made the basis of any calcula-
ton for the future
We have, then, the elements of the calculation
namely, the present amount ofthe fund.- the interest
thereon for one year, and the probable annual in
come from the bank tax and pedars licenses
sine process OF accumulation by annually COM I
pounding the interest," according to the act consti-
tutlng the fund, will produce S2,0003S7 70 on the
flrst of January, 1873; so that the children who
shall be in life in that year, will reap the first
fruits of the fund, if it shall be SO long continued
This assumes however, the doubtful position. that
Six per cent. interest may be realized throughout
the entire intervening period of hrtyt years and
Three months, and makes allowance for losses and
the expense Of managing the fund
Inc great question Is now presented-what, in
reference to this fund, is our duty to the genera
tlon OF 1882 Admitting, of course, that it is our
uut 10 LABOR Tor the benefit of that generation the
question is-will that generation be really benefit
ted by continuance of the fund? If we could
SEND y forward to them, really invested in sap
proved pank stocks, other productive securities"
according to the law of 1925, they might, perhaps,
De benefited though the expedency of accumu-
laung school funds, so large, to have the effect
OF relaxing personal efforts, begins to be question
cd But so tar as we send them fund, consisting
OIL debt due from the State, we send them fund
entirely unproductivea fund which, when it reach
es them will consist merely in their Indebtedness
TO themselves. five would make it otherwise we
must tax the people of this generation to amount
sufficient to extnguish the indebtedness of the
State to the fund and having thus drawn the a.
mount from the pockets of the people, invest it in
productive securities" and, in that condition,
send 1t forward to the generation of 1873. But
VINO Is prepared to do this 7 Who will vote for
sSch a tax Nome tmay be confidently affirmed
Nor, II may be affirmed with equal confidence, will
our successors be willing to do it, five, ten, twenty,
or tirty years hence when the Indebtedness of the
State shall, by the compromising of interest, have
become greatly increased. OF what benefit, then,
will the fund be to them, unless it can by some
fiscal magic, be made spontaneously to yield the |
interest, and pour it into the treasures of the towns
for the use of schools?
The whole operation, so far as itproposes to ben
eft the generation of 1879, is deusion 1t is the
people borrowing of themselves, and adding the
annual interest to the debt against themselves and
sending this accumulated Indebtedness forward to
become the Indebtedness of generation thirty
three years hence, for the purpose of beneftting
that generation. The truth is, that, instead ofsend-
ing them a benefit we shallsend them a burden.
which, if wise, they WILL by abolishing the fund,
shake of-namely, the burden, if they would car