Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1881-05-28
CARSON, May p, 1881

The following iS, perhaps, worthy o
ne tice in the reply IF the Ader edit,
yesterday to my communication of the
day previous. With mis- silly attempts
at sarcasm ur humor / have nothing t.
do:
When the custNiians of the schm
fund learn enough to distinguish bee
tween the legitimate and proper itCest-
ment of the fund in the securelies com
templatt'd Ivy the Constitutisn', and the
6osTOu'i"g Of money from, the fund by
the State for the p .yment Of its current
expenses. they will approach an under
standing of the question involved il,
the change that, through the indefensi-
! ht. management ut our financial officers
and the Legislature, our school moneys
are being iilicitly distracted from the
Treasury.
Now sir, in all decency and candor,
permit me TO inquire-;nd answer my
own query, 10y the fundamental law of
! this >tate-What securities are "con-
templated by the constitution" as sut,-
| jects for Investment of school fund mon
eys? Section 3, Article Eleven of that
instrument says: United states bonds
or the bonds of this State, that is, the
school fund shall lend its money to the
United states or the State of Nevada.
at its option and to no one else. If the
school fund buys U. s. bonds, the U. :.
has borrowed just the amount paid
therefor from that fund. If the school
fund buys State bonds the State has
borrowed just the amount paid theref'r
from that fund. An utterer of bonds is
always a borrower and purchaser of
bonds is always an investor. Now sir,
what does it matter to the investor for
what purpose the bonds it purchases
were issued? What does it matter gen.
orally to the seller of bonds, or in other
words the borrower, by whom they are
purchased? In this particular case it is
better for the State that its bonds be
held by the school fund, solely for the |
reason that the interest paid thereon
goes to aid in supporting the public |
schools. 1t is better for the school fund |
(as have shown befort') because it gets |
a higher rate If interest for its money. |
II this he 80, what becomes Of the asser-
ton that "our school moneys are being |
illicitly distracted from the Treasury"
Illicitly, i. e., unlawfully, without war
sertion is false, nay more 1t is libelous.
No money has been loaned by the school
fund to the State illegally, or without
OF law-without statute ex-
pressly authorizing the issuance by the
State of the bonds purchased. The
question as to whether the State has q
right to borrow more money, whether
it has already exceeded its borrowing
power is yet AN open one, but with all
in favor of that power,
and the decision of Court of this State
in its support. 1t does not enter into
this question because until the right to
borrow is denied under u decisisHl
from our highest Court, the officers who
are charged with the execution of the
laws are bound by their provisions.
The allegation that the State is bank
rupt is unworthy a citizen Of Nevada.
The n ere fact that The identical bonds
now being purchased by the schuol
fund can be sa,ld elsewhere at par is an
absolute refut,tiOn Of the filsehOOd. !
Why, sir, this State owes $3Oo,OOO less
than it did ten years ago, has more pep
pie, better improved lands, more prop
cry valuation, and one hundred per
cent better credit. Bankruptcy! tor
aNth. 1t would bOther any solvent
merchant or business man in Nevada I
10 borrow money at less than ten per
cent per annuin and yet tho State can
set premium on its bonds b airing five
sr cent. It's public building, alone art.
worth more than it owes. One wor.l
more. property in Nevada does not
nay taxes upon II fair valuation it is M,
harse Tile t., the Executive Department.
lis oincers have PERSISTENT; urged and
demanded that tiry be authorized to
investigate and equalize pr"perty valu- 1
ltiOils. Assessment ana taxation is, ,
,nder our system, purely lOc ], and the .
ulcers of the STAGE are powerless. AS +
. the s:c.,sh lHasis l'ropO,itiOn," it need {
'nly be said that il is better to borrow {
>sk tkH<AI u.