The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-02-09

dren Of the State to borrow all the moneys
10 The school fluid they Gao get at per cent.
Mr.. KAHN: decidedly favor the amend.
ment offered by the Senator from Allen aad
Whitley (Mr. Brown for this reason: /
think 1t is not right and fair for the State of
Indiana TO compel the people TO pay per
cent. intesest, when We all know that 1t is
notoriously too much Just because some OF
our citizens and Deighbors happen to be poor,
and becau'e we have the power. We say to
the County Auditors: go ahead aud
continue to ask per cent and the
balance you can't loan at place
at F" At this time Der cent lie an outrage
GUS high rate. The Government is getting
money at 3, ard the State is offered money
at 81, and why should We compel our citi
zens who msv want money out of the school
fund to pay per ant? think the amend.
ment is right and proper. 1t is half way
meeting our citizens, even II il does reduce
the pres ent rate per cent. l claim TO be as
much 10 favor Of schools as any man, but l
say il Is only rightsnd justand proper to come
down with the interest aud keep up with the
times. IL we reduce the rate OF interest II
venture all the money will be placed. D)n't
let Us make fish OF one and flesh OF another.
Mr.. HILL: / favor the amendment of
the Senator from Allen and Whitley (Mr
Brown because | think il will produce
more money for the school fund than the
DIcSeul RATE luz pISs6Ut Iht6 Is per cent,
and that is charged aud taken in advance.
Then there are certain expenses attending
the getting OF this money, and after all these
costs are paid the person who gets the money
pays 9 and in some cases 10 per cent. II the
rate of interest is reduced 10 per cent. we
will likely realize more than wa do at s, the
present rate, snd for that reason | propose
TO vote for the amendment.
Mr.. MCCULLOUGH: l am opposed to a
bit which would require individuals to pay
or per cent to the county and the county
pay PER cent. to the State. That would be
compelling the county to pay or per cent.
for nothing. / don't think that part of
eau OF clause Ia the Constitution that the
county is required to pay interest to the
State. The Constitution provides that the
county shall take care OF the principal Ii
is not a trustee for the purpose of loaning
II law is enacted making the rate per
cent. and requiring the county to pay per
cent to the State then the , per cent. differ
encs is not interest at all; it is simply taxa
ton OF per cent. / am in favor Of making
the rate of interest uniform throughout the
State.
Mr.. WEIR: / hope the amendment
offered by the Senator from Whitley will
not be adopted. 1t proposes to reduce the
rate of interest on the school fund to Z per
ceLt throughout the State, aud thus reduce
the income last one.eighth. Now, there
may be something in the c1n stitutional
question raised by the Senator from Gibs0n
Mr.. Mccullough. but | am not aba to agree
with him. The county has TO pay per
cent. to the State and this iron-clad rule
that they must loan il at S per cent, and
not be allowed TO loan it at something near
8, simply takes out OF some County Treas
urer 8 600 year, and yet the money lies
idle. II the county only has to make up l
or per cent, can see no reason why the
county should not be better Off think
this bill ought to pass
Mr., SELLERS: / am opposed to this III
because can see how, under its provisions
the Auditor and Commissioners OF a county,
when they are candidates for reelection,
may favor every doubtful voter in the
county with loan OF M 1Dey from the school
fund. They will loan to those psrsons who
favor their candidacy at le ser per cent,
and the citizens of the whole county will be
obliged to make up tbs difference, thus
allowing candidates for re-ee ction to have
their campaign expenses paid by the citizens
OF the whole county. / rather favor the
amendment OF the Senator from Whitley,
and yet l am not really ready to vote
upon 1t.
Mr.. CAMPBELL, of Hendricks: This ques.
ton involves too much to be considered
hastily. The bill relates simply to the loaa
OF school moneys in certain counties remain.
ing unIoaned. The amendment concerns
the interest on FIVE millions in round num-
bers, and involves a question of so much
much more Importance than the bill, the
whole subject should receive careful aud
deliberate attention. l move that the bill
and amendments
Mr.. WEIR: Inasmuch as the question of
the constitutionality OF the bill has been
been raised, and inasmuch as that is a most
important question, ask the Senator if he
will not move that the Judiciary Committee
report as to its constitutionslity.
Mr.. CAMPBELL: Certainly; send it to the
Judiciary Committee with instructions TO
report on its constitutionality.
1t was so ordered.
And the Senate ad journed.