Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1881-07-10

SuDJect OF Slate finances with Specie
reference to the State School Fund
This is a subject in which almost ever,
tperson is interested, and as it has beef
considerably discussed Of Late and fact
have been greatly distorted, we fee
that we will be doing our readers IA
vor by reproducing the main points o
| the article: .yse ega zlsssl1aE .e8gaa.zsi
"There has been considerable criti
cism on the action Of the financial Off.
GERS of the State under the laws of the
last Legislature concerning. this fund
They are acting, I it is said, with in
decent haste under unconstitutional
laws, and are robbing the children OF
the State Of the moneys sacredly pledged
and set aside for thei.' education in the
public schools. This critic ism comes
out of the discussion of the Insane
Asylum bill principally. The Supreme
Court have this bill under considera-
ton and are expected to render their
decision at an early day. The bill is
attacked Oh the ground of its alleged
unconstitutional;ty, in two particulars !;
first, as to the insufiiciency of the title
secondly, that money can not be :taken
from the State School FUND.- for the
purpose"
[The Supreme Court has just decided
that the bill referred to is constitutions
al.-ED. APPEAL.
"The faith Of the State is solemnly
pledged to its School Fund for the
moneys taken therefrom for investment
To question the propriety or policy Ct
the State thus deriving a benefit from
one of its plethoric funds, sug gests a
doubt of the States financial integrity,
and indicates want of familiarity with
the situation. In the outset, this fund,
which has been so robbed was in
creased by $55, 900 transferred from the
General Fund in order to place the
s3s0,OOO irredeemable bond to its
credit The name of the bond Grre- |
leemable) has given rise to severe
criticism. What is the value Of a Sc
.urity that is not negotiable; that, on
is face, carries the express contract that
IS principal shall never be paid, it is
lsked? The Territorial bonds in the
,lace of which this bond now stands,
would have matured in 1887, and the
irredeemable' bond was so framed lis
o abolish the necessity of paying the
ace of the other bonds at that date, to
ay nothing of the % per cent. interest,
'ayable semi-annually, during their
ife. The bond was never intended to
e negotiable, and was not framed with
ny such reference, although Gf Nevada
olds any respectable place in the money
aprkeD it is negotiable in its present
0rm, and could, no doubt, be sold at a
andsome premium. But why make a
tumbling block Of so harmless word
s irredeemable? The next Legisla-
IRE can change the nature of the bond
$ the people may desire, and make. it
ayable at any time they may deem
est.n ..rr
"The gist of the consideration is
,hether it is better to have the $780,
90 and other amounts invested as occa-
ion requires to meet the expenses of
he State in the securities of our own
tate, or in those of the United States.
oppose the investment made in the ;
liter securities. The enormous pre-
hum paid for them has cut down the
mount of the purchase money dlsas-
.Ously-an immediate and serious loss
, the School Fund itself. If the
mount be in State bonds, the fund gets
re same rate of interest on a much I
rger principal. Further, the State, if |
Re latter investment is rejected, must ,
I'll her bonds on the market at ruin
Is discount probably, owing to the ,
resent inauspicious outlook of our
lining interests. The School Fund :
,ffers damaging loss on the one hand,
I'd the people who pay the taxes have