The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1883-02-18
INVESTING SCHOOL FUNDS.


.
Ia Secured Loans Upon Real
OF state senator Fleming,
Au,rIN, Feb. Al Editor HERAlDl-I
notice the state press of late has had more
or less TO say ON the subject Of investing
the school funds, the wisdom Of leaving
the matter to the discretion and control of
future Legislatures. This isa very impor-
/ ttnt measure and it cannot be too well con-
/ sidered. The constitution at present limits
the Investment Of the school fund to state
aud Un{el States bonds. Under the oper-
/ alton Of this constitutional provision we
/ have seen large sums OF the school money
/ invested in state bonds at q premium OF
| forty cents on the dollar; in other words,
sum nearly equal 70 One-halt Of the invest
ment has boon paid out or premiums ON
| these bonds
! In less than fifteen years from to-day, il
no great calamity or misfortune should
oyertaKe US, the public debt, state and
national will be paid OIL Indeed tax of
/ 90 cents on tue 500 valuation on the taxa.
| bic property OF the state ana the surplus in
/ the treasury would pay oil the state debt
| in a single year When these bonds are
! paid some other method of Investment
must be found How shall H. be done
Shall We follow the policy inaugurated be-
| fore the war aud loan IT to railroads, or
shall II be utilized in some other way that
will be OF more immediate benefit to the
people OF the state
| 1t the policy ol selling our school land Is
continued 1t will not be long until We have
ten or fifteen millions i'll money Of lois
fund for Investment, 1t we undertake by
IA constitutional amendment TO Tx the mOue
| OF investment we may again find that the
securities which We may name will COM
mand enormous premiums, or be paid off,
and no longer exist We would then be
called upon to change the constitution
again, Ii we consider the disposition of
our people, AS manifested in the vote on
other amendments lately submitted We
will find that IL is not such an easy matter
TO M end the constitution. The COnstitu-
! ton ought 10 be so changed rs TO leave the
| investment Of this fund under the control
of the legislature.
| thinR this money should be loaned TO
| the people. As last a. 10 accumuiates in
the treasury let il be distributed as the
available school fund now is, among the
different counties otthe state, according to
the scholastic population The commits
sloners court, under law properly
] ElAIltNlt Nhiulu nave thlAiIbl VI lllt lulllS
/ 10 be loaned 10 the people of the counties,
on long time, at seven aud eight per cent,
interest, upon improved real estate secur-
lty, taking u mortgage lien in favor OF the
state, the mortgage To contain power OF
sale 10y the sheriff of the county. The loan
should run at least ten years, and as much
longer as the borrower may desire, the III.
terest to be due and payable annually, on
the first day of January Ol each year, and il
not promptly paid, the principal and inter
est TO both become due The law should
also provide summary method for selling
the land held as security.
1t should also provide that the commits
sIOners court should constitute board oil
appraisers, ana 1t should be their duty 10
view and appraSe the land offered as scGur.
ity, and the loan made on the tract so ap.
praised should never exceed one.third or
one.half of its value. The borrower of the
fund to be charged with the payment OF all
costs incurred IN executing the mortgage,
and III investigating the title to the land
offered ~ security. In the state o
Missouri the school flnd belonging (,
the different counties, is loaned In this va,
To- the peopleot the different counties, eA
cept IN addition to the real estate they re
qmre two cool personal sureties. hpg,
examined their statutes and have met inC
NNhNN'eNA WIN many lllltlilEcll ClilLtnl
rom that state and they speak in the high
est terms OF the system. The interest II
paid promptly and all the fund is loaned
Instead OF losing ny part of the fund, an
informed that II has constantly increased
That when the school fund has been com
PEELED 10 buy the land ii has been agar
sold at an Increased price over the sum OF
money loaned upon II,
Now, II seems to me that if the people o
Missouri can successfully do this, we 10
Texas can do the same thing. The security
certainly Is good, In all ages of the world
50 FAR Us ! know, real estate has always
been regarded as the safest aud best Sc
cutity, Hence In the older and more non.
uiOus states, where savings banks aud trust
companies accumulate large sums OF money
the law requires that it shall be Invested in,
or loaned upon real estate security only,
The value OF teal estate IS permanent aud is
unlike bon5s which command premium
to-day and Tomorrow are ut u discount. Ii
does not run AWAY; it cannot. be stolen or
destroyed, Revolution may come, govern.
ments may be ovcrthlown, the credit OF
the governments my he swept away IN
financial storms and disasters, but the land
stu remains, Our school fund is in rca, es.
tate now.
Why should it bo considered unsafe 10
invest ourschool money in Texas real G, =
later Out of the 1857 olOCQO of taxable
values assessed IN lSSl, the report of the
comptroller shows that S223, SAG, ISL WAS in
real estate, IL HAT not ample 10 secura
SlOCW 600, or $4,000 900 OF the school iundI
or the $4,000, 0N of taxable values assessed
for lSS2, doubtless over S275,0O0,0OO is III
real estate
1t may be said that there is more diiNculI
" about tiles 10 land Ia this state than
Missouri suppose the title TO laad \
sometimes contested in the state oi MI
souri,; but BE- that US IL may, millions J
dollars ace loaned by individuals ia thIs
state upon lands, AMI it individuals c, X,
loan money upon real estate the state c,kl
also 40 1t. can he made sale and il cjn
DC male To do u great work for the lbeorAe
OF Texas, and at the sane timc advance
the interest OF the school fund. II Mould
bring cheap money to our people, snd II
loaned AT aud : per cent, would NOR,
than double the interest We are NOW get.
,lng on our investment IN bonds,
would sell tie slate bonds
We own AT the same prize NJ,
which THY were purchases, and Invest The
principal and premium at aud s per cent
with our own people. IL would enable
them to open up and develop large sections
oil the country now unoccupied. II would
enable our hrmersto place their farms In a
higher state OF cultivation. Thus invested,
u would swell our taxable values, and the
interest paid each year would be returned
10 the people in the education Of their
children. The money would remain with.
IN the borders OF on, own state .or the ben.
eiit OF our own people. II would no longer
DO consumed In paying extravagant premi.
ums. IL would enhance the value OF our
real estate. as 1t would show those desiring
selves.
| believe II Is not only safe, but also pruc.
ticable, and that can be made a success
here as II 10 in Missouri. l think, when
thoroughly understood, this method viii
DO acceptable TO the people Of Texas, But