Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1883-02-19
THE SCHOOL FUNDS.
Senator Byrne Explains the Matter OF
Their Investment.

senator Byrne Explains the Matter Of
Their Investment.
The Senate Saturday, having under con-
sideration Mr.. Woodyards amendment to
House appropriation bill directing that
no part OF the school fund be
used in payment OF appropriations
Mr.. Byrne spoke as follows: / think
there is an improperly in adding that pro-
vision to this bill. 1t is reprimand upon
the State officers who have the matter in
charge, and /, as a member Of the Senate,
do not propose to engage in it. Now this
school question is one which has perhaps
more agitated the politics of the country
which has been seized hold Of more than
any other to stir up the prejudices of the
people with reference to politics. 1t has
been more misunderstood than anything
else pertaining to our administration.
Now, have investigated this matter to
some extent, and the special committee ap-
pointed by this Senate has had the auditor
and nearly all his force at work ever since
the original resolution was offered, and all
the time they could spare, day or night:
has been devoted to the ascertainment or
these facts. 1t has been long supposed that
during
Republican Administrations
there were actual wastings, actual misap.
preparations and that many errors haa
crept into the book keeping, and this in
yestgation shows the bookkeeping was OF
such a character il isimpossible to tell what
was done. very much question whether
during this session with all his force he
will be able to unrarel the system OF book
keeping so we can tell certainly about IT..
He hopes to be able 10 do so, but has not
as vet been able to show the figures. He
can take the figures fer the last ten years
and run over them in day and give clear
statement OF what has been done with the
funds of the State. But it is impossible to
do this prior to that period. spent some
months when connected with the public
schools in trying to get at them, and |
found / failed TO develop the truth and
made mistakes. / believe the accounts
during the Republican administration will
stand better than was supposed, much bet
ter, and want 10 say now that believe
all parties in this State have had.
An Earnest Desire
TO administer the school funds upon an
economical basis and rules OF justice to all
concerned. While there may have been
mistakes as to the one the gentleman from
Preston refers to, we know that vast deal
of what has been said on this subject on
the Austings and by all parties was tabri-
cation to Il great extent. Now, with refer
ence TO borrowing from the school fund.
The constitution says this school tund
shall be used for no other purpose than
the benefit of the schools. Now, in 1873 [
will give YOU the excuse for the beginning
of that thing. | remember it well. ! was
a member of the board of the school fund
at the time and recolleCt the circumstance
which brought it about In 1873, after the
great panic had struck US, the State had to
borrow money, only small amount oil
money to tide over
Deficit in the Treasury.
We had been trying TO invest about Sl2), :.
900 for months, perhaps year. We could
not buy bonds, except short bonds. We
had $50, 900 in the treasury in 1873, when
the premium on bonds was q cents. We
would have had to pay premium OF one
fourth. We found the government had TO
borrow little money, 1000 to $1,000,
and believe | suggested, as a member OF
the Board, here is a fund of $4,000 paying
no interest. and it always lies in the treas
ury considerable part OF the year without
investment. | said, does not the cOnstitu-
ton authorize us TO invest this money in
State securities, SO that we can have inter.
est at per cent on S2OOOO instead OF TAX
ing a short bond, which will expire and be
called in before We get back sufficient in
terest TO pay the premium we must must
pay on the bond. We examined the law
and found it said the fund should be in.
vested IN State securities or United States
=, lar nS .yh
be found. Now, the State had to borrow
money at 10 per cent. The government
would have had to pay 10 per cent on the
bonds, and We resolved and come to the
conclusion that for the benefit of the school
fund and the schools of the State, 1t was
better for the State TO take that O,OOO at
per cent or what it wanted
Than Give Away $1,000
in premiums on bonds, which would be
called in very short time. Up to that
time we had been able to procure Pacific
Railroad bonds, which were long bonds,
but we could not do it then, and believe
none have been purchased since. Now it
is my opinion as well as that of the COM
mittee who have had the question under
discussion, that it is better to let this fund
remain as il is, invested in State securities,
bearing six per cent. interest than 10 levy
tax on the people 10 refund it, merely to
be loaned out again at less advantageous
rates. That is the way we look at it. 1t
must be further recollected that we have
expended thousands upon thousands OF dol
lars on public buildings, and that We have
levied but 20 cents on the 500, whereas the
Republicans levied 25. Now that these eS.
pcnditures for building purposes have ceas
ed. the money will be at our diSpoSal, OF
which We have been annually deprived.