Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1886-10-12
THE PEABODY FUND DEPLETED

THE PEABODY FUND DEPLETED.
At the recent meeting of the trustees of
the Peabody educational fund it was
stated that the principal OF the fund had
suffered loss of $4,000. The trus-
tees hsd invested that amount in bonds
Of the states OF Fiorlds and Mississippi.
AS the interest from the fund was to be
used exclusively in Southern states, the
trustees seemed to have entertained the
impression that an investment in the
securities Of those states would be at
once appropriate and prudent. These
bonds, then, constituted part OF the iund
and for many years the interest was paid
promptly and in full. But within the
past year the states Of Florida and Mis-
slssippi have declared that the particular
Issue Of their bonds which the trustees
bought were null and void, because Of
fraudulence and corruption connected
with their issue and use, and have repu-
dated them. A state is sovereign as to
matters Of debt and may not be sued
without its consent. The decision Of the
supreme courts in Florida and Mississippi,
declaring the bonds fraudulent is there
fore final, and the result is that the Pes
body fund is diminished to the amount Of
eI,lO0, 900, the annual interest on which,
at per cent, is s44 1000. The trustees
have not been allowed to use any portion
Of the principle, but only the interest,
aud this s44, 900 constituted over one
third of their entire available revenue.
II is heavy loss, and there must be re-
greet that the loss has to be borne. II
was noble deed, Mr.. Peabody's be.
quest to the South, and for twenty years
1t has been distributed wisely and i'm
partially. The amount distributed in any
state was not large, but 1t had q helpful
effect aud has done greet deal to stimu
late the growth and development of this
public educational establishments in tn,
Southern states. The gift came at .
time Os66) when every Southern stat,
was in depressed and demorslized con
dltion, and Southern men, whose mem
cries run back to that period, will recall
how grateful the South was to Mr.. Pea
body for the substantial manifesto
tion Of his interest and friendship. A
TO the Reputation Of the bonds 1t vii
OF course be understood they were issue
during the reconstruction era, when tn
carpet-baggers plundered the Souther
states without mercy. Everybody vii
regret to see the Peabody fund lose tn
money, but justice cannot be partial, an,
II the bonds were based on fraud, an
were therefore an outrageous imposition
on the taxpayers of Florida and Missis
sippi, then they ought to be repudlated
no matter who suffers. 1t is probabl
some Of these same bonds are held b
women and children, on whom the los
will bear with real hardship, but ther
can be no interposition or discriminate
In their behalf Fortunately the los
comes at a period when the Peabody fun
had in measure accomplished its mil
sion. Its chief purpose WAS to serve as
stimulus to educational effort IN tn
South. 1t was q nucleus in its earle
days and accomplished its purpose, fc
now all the Southern states have liber
and comprehensive public educatloni
systems and inlteracy in the South BIZ
been so steadily reduced that II will soc
be, comparatively speaking, memory
the past.