The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1883-08-02
HOW THE SCHOOL FUND Is
DEPLETED.


DEPLETED.
Again the permanent school fund is
being deprecated by the runious in
vestment in bonds at a great discount.
1t has been announced in our depart
ment notes that the state treasurer
has bought $4,000 of frontier bonds
at 1.22, and that 100000 is to be in-
vested in high premium securities
The transaction of last year, whereby
the school fund was made to lose
$4,000 by such investment, was
sufficiently condemned by the people
of the state to lead officers, especially
regarding the public funded interests,
to enter into no more such transac-
tions; but instead of popular protest
being regarded, again the governor
and treasurer engage in a similar
financial transaction. 1t will be re-
membered that one of the declara-
lions against the Roberts adj
ministration by Judge Ireland,
when he became a candidate,
was because 81 ,444,0O0 in cash had
been used to invest in 100000
worth of state bonds. Denunciation of
this transaction was one of the heavy
arguments of the gubernatorial candi-
date; but to be governor is very diff
ferent thing from being aspirant. II
there be not in such course the
-quintescense of demagogueism, then
it must be insincerity, and taking
either proposition as true, the condl-
ton is pittiable. Last year the school
fund was deprived of nearly half
million dollars, and now the process, it
is announced, is to be repeated. In
1882 and in 1883, then, the school fund
is to be diminished by nearly one mil
lion dollars. AT this rate it will take
but eighty years, at the outside, to
take away from the children of
Texas the last vestige of the
grandest inheritance ever left for
the education of the young people
of any country on the globe.
What is the use of a boosted school
land reservation, if so fast as the lands
are sold the money derived there
from is to be invested so as to reduce
every thousand dollars to a little more
than five hundred dollars? The CUB.
ernatorial candidate, us stated,
made an issue on this very
point; but the candidate,
changed into the chief executive
officer, does that very thing which by
his condemnation he pledged the peo-
pie should not be done during his ad-
ministration. Probably he has been
over-persuaded by the state custodian
of public funds, who may desire his
act of 1882 to have the endorsement
of two Democratic governors. Should
Democratic officers go on in this man
-pesISsS.h- longer Mr. Davis being
dead, the rule of Democracy may be
made short in Texas. But the highest
feature of this transaction, now M2der
course of execution, as is announced,
is that in very few days the peoples
are to vote upon proposition,
amendatory of the state constitution,
authorizing the investment of
the permanent school fund in
other securities than thfjSe
which are bought through ruineh1s in
roads thereupon. The state treas
urer made his defense inathe last
canvass as to the transaction by
which the school fund was reduced
by nearly half million dollars, by
figuring that between the purchase
of bonds and the interest, running
through a great many years, the state
had been saved money. In answer
to this argument it may be asserted,
that no one knows how low state and
federal securities may fall in the next
fifteen or twenty years, or before
these bonds become due. But it is
not a question affecting the state
proper. The constitution has given
the permanent school fund sepa
rate and distinct existence from
state revenue The one is for
the children Of Texas; the other for
the people of Texas in their political
capacity as governing body. The
one is sacred fund.-" so-called by
candidates at least, provided by the
fathers, in their wisdom, to cTeate a
perpetual fund, upon which every
boy and girl in Texas may draw for
his or her education !; the other the
annual contributions from individual
property, to be used in maintaining
the state government and it's neces-
sary machinery. One has nothing to
do with the other, has no dependence
upon the other, incurs no Indebtedness
to the other, and yet the school fund
is made to contribute to the iquida-
tion of debt incurred in maintaining
state government. The constitu-
tion provides the manner of
investing the school fund
but nowhere in that document is it
provided that state officers, entrusted
with its care, shall recklessly squan-
der it, at any given time, in the pur-
chase of high-priced securities. Es-
pecially is this present determination
to spend another million dollars in
such securities wrong. even offensive
to the people of Texas, when these
very people are asked to vote on the
l4th of August on a proposition
whereby it is contemplated that this
rRinous waste of the school fund
shall be avoided
OVER PRODTCTIOy