The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-02-19
A FRANK AND rAIR spEIcI


Mr.. Byrne then spoke at some length on
the pending amendment, disclaiming par.
tisanship. He held that the question in.
yolyed concerning the use of the school
fund by the State was little understood
The circumstances out OF which 1t grew
were peculiar, and the investment in its
inception was not done without mature de-
liberation by the Board OF the School Fund.
In 1873, during the panic, there was to the
credit Of the school fund in the Treasury
about $4,000. There was asmall deficit in
the Treasury, to pay which the Board Of
the School Fund found that the Governor
was about 10 borrow about $4,000. This
was while the speaker was State Superin-
tendent OF Schools. Before this the funds
had been invested in United States bonds,
chiefly per cents, mostly registered Gem
trail Pacific Railroad bonds. Upon
seeking an Investment OF the $50, 900
in these bonds, the Board found
that none could be obtained, and there
was no opportunity to invest in other
United States bonds except at large pre-.
MUM, his recollection was about "a per
cent. The Board, OF which Mr.. Byrne was
er offcio member, at his suggestion
whether it would be constitutional to in
vest in State securities, alter investiga'
ton, found that the Constitution
provided that the fund should be invested
in United States or State securities, or other
securities. II this could be legally done,
Il was suggested that it would be better for
the State and schools, that this disposition
Of the money on hand should be made, for
81, knk In hn D..
ting interest on the whole fund at 6per
cent, and the Governor getting money at 9
percent instead OF 10 as he would
have paid the banks. The Board received
the proposition iavorably aud the invest.
ment was 80 made. Had 1t not been,
nearly one.fourth OF the amour,
on hand would have been consumed as
premium on bonds which were nearly
matured, and which after falling due,
might be called in any time at par. The
sequel has shown that they would have
been called in before the investment had
yielded enough interest to restore the
original principal. These were the reasons
which induced the investment, and which
| he supposed controlled subsequent invest
ments, till the amount has reached SLY,
5ll. The speaker was aware that there
might be doubt as 10 the strict constitu
tionality Of the investment; yet severa
prominent lawyers in the State had ex
pressed the opinion that 1t was strictly In
accordance with the Constitution. However
this may be, the investment having beer
made, and having been greatly TO the In
terest Of the State and OF the general schoo
fund, he thought 1t ought not now
to be disturbed, since. to levy {
tar now 10 pay the amount woulC
only be to collect $l27, 900 off the people Il
be invested in interest bearing bonds run
ming from 8 TO Al per cent, as could be pur
chased. Since the Board has ceased 10 in
vest In the bonds OF the Governor payable
by the State at 6 per cent, they have in
vested 100000 in bonds Of the city o
Wheeling at four and one.half per cent, OF
which they paid small premium. Thii
was the history OF the matter as MIR. Byrnt
understood II, and he was satisfied It coulC
not be conttoverted. Hebelieyed It woulC
be 10 the best interests Of the State and o
the schools 10 invest all the fund IN Stat,
securities that the State might be willing
TO take. The charge that the State has mis-
used any oil these funds 10 wholly gratui
tous and without any foundation in fact
but everyone who will examine the subjec
cannot fail TO see that the best interests o
the schools, at least, are subserved by thi
investment. No one will deny that as
matter Of policy the investment was wise
the only question involved being Its con
stitutionality.
The Republican party, ever since tn
Democratic party went into power, ha
been making this question their chic
! hobby in political campaigns, until the
have got many ofthe people to believe tina
there has been great Encouragement b
the Democratic party oil the school finances
There has been no truth whatever In thi
charge. My chiet purpose In moving tn
amendment to the recent resolution OF Ii
Senator from Preston, Mr.. Dawson1 so o
10 take in an investigation Of this Who'll