The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1882-04-06

buy land. AS the country rapidly
settles up, many of these lands
would soon be worth more in the
market than their appraised value.
And as the bonds would not be
bearing a high rate of interest, there
would be every inducement to hold
ers to to invest them in lands. In
my opinion very few of these bonds
could ever reach maturity and be
presented TO the state for payment
of the principal in money; but
nearly all would be taken up in pay
ment for school lands at good
prices. What then has the state &C
complished for the benefit of the
people, in this operation? In the
first place, the available school-fund
has been augmented, and the eff
cheney of the public schools in
creased, without taxation or sacri-
flee OF the school lands. In the sec
ond place, the sale of the lands has
been effected at good prices. And
in the third place, the bonds have in
directly answered the purpose of
circulating medium to the people,
while in their..hands.
But some one is ready to say you
have used the principal of the pro-
ceeds of these lands, and have vio-
lated the constitution. Not at all.
If an individual sell land, it is en-
tlrely proper for him to take his own
paper in payment, instead of money.
SO of the state-when these bonds
are taken up by the state, they are
deposited in the treasury, and repre-
sent so many dollars due the public
school-fund by the state. And it
should be provided by law, that all
the land bonds on hand at the end
of each quarter should be cancelled,
after first converting the aggre-
gate amount thereof into a
perpetual state bond, for money
payable to the public school fund,
and bearing interest at the rate of
six per cent. per annum. This
would satisfy the constitution, and
secure the school fund forever. Ger
tainly the state had as well be debtor
to its own school fund as to Joan
that fund to third parties. The con-
stitution directs that the proceeds
of the school lands be invested in
the bonds of the state, if they can
be procured. There certainly
would be neither sense nor
economy in selling the lands
for cash at sacrifice, and then
with the money buy up outstanding
state bonds. The plan L have sug-
gested has at least the following
merits, III favor OF the state and peO-
pie:
LIST. 1t Immediately augments the
school fund, and increases the eff
cheney of the public schools, and
effects the sale of the land at good
prices.
End. Enables the state to control
the principal and be debtor to it's
own school fund, without allowing
capitalists to speculate either in its
school lands or bonds.
The plan presented by Mr.. Dahoney
has the merit of originality, but in
our estimation it has objections,
principal among which is the fact,
that the state is required to issue a
bond upon which it must pay inter-
est. The constitution provides that
school money may be invested in
state bonds, but then it must be re-
membered that a very small sum
derived from school land sales
would take up all the bonds the
state has now outstanding,a and then,
if the alternative were adopted
and United States bonds were pur-
chased, the fund would draw only
three per cent interest. The simplest
plan, in our estimation, would be to
sell the lands through the land COM
missioner alone, for their full value,
in amounts to suit purchasers, on
twenty, thirty, forty or fifty years
time, at the desire of the purchaser,
with five per cent. interest, payable
annually. Make sales or leases and
let the purchasers and lessees pay
interest to the state, not require the
state to pay interest on anything.