Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-09
THE SCHOOL FUND.
Plan for the Distribution Among the Peo-
pie of the Cash Permanent school
Fund on Hand.
MEEoLA, TEX. Aug. :, 1891.

To the Gazette.
II seems very likely from present indca-
tons that the governor will call an extra
session of the legislature soon. Ii he does,
perhaps il would be well for him TO embrace
Ill his call some action OF the legislature
providing for the investment Of the cash on
hand belonging to the permanent school
fund of the state" The present stringency
of the money market, caused in part by the
alien land law, calls for every dollar that
can be put in circulation. There Is some
thing more than $1,000, 900 of this school
money lying Idle i'll the treasury, which
could be made TO yield 10 )
per cent interest annually, making
$4,000 to $4,000 for the available school
fund, and at the same time it would nelp 10
develop the resources OF the state. This
money can be put in circulation by the state
buying or taking county bonds. bearing 10
. per cent interest, payable annually. using
proper prscauuion to see that the taxable
values of the county should be abuudautiy
sufficient TO make the investment safe, each
county to get its pro rata share of the
money, according to its population. The
commissioners court of each county should
supervise the loaniug OF this money, which
could be loaned at per cent. upon real or
personal security, or both, i'll limited guam
titieS-say not more than $500 to any one
individual, and upon time not less
than three nor more than five years.
The state has already invested over
$1,000 600 of the permanent school fund in
county bonds, which it now holds and there
is no complaint about it. The commission
ers' court of each county in the state has
charge OF the COunty'S school lands -four
leagues each), with power to protect pre-
serve aud dispose OF same and invest pro-
ceeds in United States, the state Of Texas,
or county bonds, or in such other ses;sSies
and under such restrictions ..szslss pre-
s s9PtDSe by son is. H. s sglis
has eveIsH1sRfSsd any other method Of
iuysS{jcl sfe proceeds OF sales and leases of
10y school lands except i'll the bonds
of counties. state and United States. None of
which can be obtained, the result is many
counties in the state have their county land
school fund locked up in the vaults. Some
of them, however, loan out this money on
coed security anyhow, and get the benefit
of the interest derived therefrom, and at
the same time get the benefit of increased
circulation i'll the county. The legislature
has the power under the constitution to
authorize the commissioners court OF each
county to loan TO its citizens the money re-
Ceived from sales and leases of the county
school lands under proper restrictions, ard
to DO the same with the permanent school
fund of the state, received by the
county for its bonds, as above sug-
gcsted. Therefore, l suggest that the
state loan to the counties the money
on hand belonging to the permanent school
fund, taking county bonds (whcre perfectly
safe, and that the commissioners court of
each county be authorized to loan this fund,
together with the school fund derived from
county school land sales ana leases, to citi-
zens OF the county under proper restrictions;
or to others in case the same could not oe
loaned to citizens OF the county. There
would be no risk 10 the state. and the
county would have those to handle the
money who had been elected by them and
responsible to them. If the counties cannot
be entrusted TO handle the proceeds of their
county school lands through their commits
sioners' court then the state ought to take
charge of it and handle it for them. If,
however, the counties can he entrusted with
the management of this county school land
fund then they can be trusted in the same
way with the management of the fund de-
rived from the state through the county
bonds as above stated. If any losses should
be sustained it would DO by the counties
and not the state. The constitution pro-
vides that this money shall be put in circu-
latien-if not through county. state or ma
tional banks. then through other securi-
ties and under such restrictions rs may be
prescribed by law. the law should be
amended so as TO authorize counties to issue
their bonds for the purpose Of obtaining
this permanent school fund. If the legisla-
ture should pass such i law it would
put in circulation over S2,00O.0O0 Estate
and county school fund.- which is now
living idle, and il would return in
Interest to the available school fund for the
state and counties not less than 100000
annually. This is a matter that ought 70
engage the earnest attention of our legisla-
tors. and if the above suggestions are not
followed, then pursue some other method
that will accomplish the object-put the
money in circulation and give US the inter-
est for the available school fund
r FART