The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-05-15
THE SCHOOL FUNDS.
Money VIII BE Ready To Distribute 70 the
Counties Early in July.

Money viii BE Ready To Distribute to the
Counties Early in July.
A great many persons in various parts
OF the state have recently been making in
quiries as to the whereabouts OF the law
passed by the late legislature authorizing
the refunding of the S3,905,000 of school
fund bonds, which have burdened the state
since some period during the war. The
law contained an emergency clause, hence
the inquiries as to what had been done
with 1t. When asked about the matter
State Treasurer Lemcke said that nothing
had been done because of the manner in
which the state had been hindered in
securing the big general loan. eff | had
attempted" he said, ''to negotiate this loan
for the. purpose of obtaining money TO re-
fund the school bonds, while we we're
stopped in this other matter, would un-
dOubtedly have been compelled to accept
poorer figure. In other words, it would
not have been a good business transaction
II pressed under the circumstances. As it
was, however, | made some inquiries con-
corning it while was in New York and
satisfied myself that we would be at a dis
advantage in trying to consum-
mate the transaction then" Capt.
Lemcke further expressed the opinion
that the law was a poor one In one or two
respects. 1t directs that the interest shall
mot be over 81 per cent" whereas, for
such large sum and running for so long
a time there would have been little diff
Guilty in getting the money at even a less
rate OF interest. 1t was a serious mistake,
too, to make the bonds of such small de-
nOminations-the largest being but 81 900
AS that will cause big bill of printing.
In contrast with this the general loan was
in denominations of million each-there
being but seven of them. Auditor of
State Carr cOncurred in Capt. Lemckes
opinion that it would have been unwise
to have negotiated the loan while the
state was experiencing trouble in refer
ence to the general loan. He thought,
however, that the loan would be negoti-
able and the money ready for the counties
by the first week of JULY
By the provisions of this bill the gov
eTnOr, auditor and treasurer are author
lied to negotiate a loan of the sum of
IS, so, 900, to pay off the debt of the state,
due the school fund. During the war,
when the money was borrowed, the bonds,
which were non-negOtiable were given to
the school fund with the understanding
that the state was to pay the interest. This
interest has been 8 per cent, and it is for
the purpose OF reducing it that the pres
ent law was passed. By it the old bonds
will be purchased of the school fund and
council, and the new bonds bearing only
about 3 or s. per cent. interest will be
sold and the proceeds divided among
the various counties of the state, to be
loaned out by them, as heretofore. The
counties will pay to the state interest on
this money at the rate OF per cent. per
annum, this rate having been reduced
from per cent. The money thus secured
by the state goes into the school fund.
There are already S5,OO0,000 thus
loaned by the state to the counties.
Therefore the two measures passed by the
last legislature will rest in the double
benefit of increasing the amount to be
distributed to the various counties to
100000, and of reducing the interest
paid by the counties from to 6 per cent.