Omaha daily bee., 1889-03-05
An important Measure,

LINCOLN, Neb., March A. Special to THE
BEE. i-One Of the most important measures
to come before the senate is the joint resolu-
tion, already passed by the house, for a con-
stitutional amendment authorizing the state
treasurer to invest the permanent school
fund in the registered bonds of school dis
tricts AT present the treasurer is limited
to United States, state and county securities.
The books of the state treasurer show a
large balance constantly on hand for years
past, which, 1T is asserted, has been depos-
tied in Lincoln banks without bringing any
revenue to the state. The balances at semi
annual dates for three years past will give
au idea of the condition of things.
On January ], 1856, it was, in round num-
bers, s6l,o00; July l, S20o,0O0; January l,
1887. 1855 900; July /, $4,000; January |,
1855, S54l 900; July l, S4l6,000.
II will be noticed that most Of the balance
has been invested since last July, but an eX-
animation of the books will show that the
greater part of 1t has been disposed of since
December l. 1888. when the balance on hand
was 500, 900. 1t is insinuated that this speedy
reduction of the money in the treasury was
made in anticipation Of the move now being
made in the legislature to open new avenue
of Investment, 1t was hoped, by wiping out
the surplus, TO do away with the stringent
argument for the proposed amendment and
with the ring that has sehemed
to keep big volumes on hand in the state
funds for the benefit of certain Lincoln
bankers.
One OF the sample transactions is that of
November Is, 1883. when the state sent to
the eastern money lenders and bought Me-
braska county ponds to the amount of
$4,000. They were paying per cent inter
est. The eastern capitalists would not sell
without a consideration, and the state Off
GERS could not pay premium. These gentle.
men solved the difficulty without trouble
The eastern holders were allowed TO cut off
and pocket interest coupons to the amount of
per cent for the whole period during the
life OF the bonds The state will only re-
ceiye per cent interest.
The state treasurer has successfully re-
duced the surplus, but there promises to be
an enormous income in this permanent school
fund within the next few years. The report
of the commissioner of public lands and
buildings shows that on November 30,
1883, that there were due the state on school
lands sold (Gnd payable to this fund.-, very
nearly - 000, 900. A bill passed the senate
extending the time Of payment I'LL 1890, but
1t was killed in the house. The object was
10 keep the notes outstanding because they
are paying the state per cent interest. The
argument against IL la the house was that
the owners of these lands are taxed only for
their interest in them as shown by their pay
ments. In some parts OF the state these
lands have advanced IN yalne 10 s25 or even
$50 per acre. while the holder may hBye paid
no more than ~ 10 s. on the purchase price
AS soon as they are wholly paid for these
land viii be assessed the same as other sim
liar property. but 10 extend the TIME for
making deferred payments would rob the
state of many thousand dollars in taxes
This point was not brought out in the sen.
ate's discussion of the bill, and the friends
OF the measure IN that body ac-
guiesee heartily In the action OF the house in
defeating the bill
OF course all of the S4,0o0,0o0 is not com
ing in at once, but "A large part Of il is liable
10 immediate collection. AT the office Of the
land commissioner it Is stated that payments
to the amouat OF ss0J,0oO To sl 10000 are