Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-08-11
THE SCHOOL FUND.
Plan for the Distribution Among the Peo-
pie of the Cash Permanent School
Fund on Hand.
M1NEoLA, TEX, Aug. 10, 1891.
To the Gazette.

MlNEOIA, Aug. IL, lS9l.
To the Gazette.
1t seems very likely from present iudica-
lions that the governor will call an extra
session of the legislature soon. If he does,
perhaps itwould be well for him to embrace
in 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 81, 000, 900 of this school
money lying idle in the treasury, which
could be made to yield to )
per cent interest annually, making
$4,000 to $4,000 for the available school
fund, and at the same time it would help to
develop the resources of the state. This
moDey can be put in circulation by the state
buying or taking county bonds. bearing to
3 per cent interest, payable annually, using
proper precauGiOn to see that the taxable
values of the county should be abundantly
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 loaning of this money, which
could be loaned at per ceuf, upon real or
personal security, or both, IN limited guam
tities-say not more thansis500 to any one
ndiKidual, and upon sSme not less
thafnsS three nor more $han five years.
Tho Ste has already invested over
s., 900. 00dRf the permanent school fund in
county bof which it bw holds and there
is no complaint about id The commission
ers' court of eN coH ty in the state has
charge of the couhA SSSchool lands -four
leagues each), within bwer TO protect pre-
serve and dispose of S he and invest pro-
ceeds in United Stated ~ state of Texas,
or county bonds, or inkuCAether securities
l.,t-
scribed by law ection article :,
amended constitution. The&gislature
has never prescribed any other Nthod OF
investing the proceeds OF sales and Masses OF
county school lands except in 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 in 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, and
TO do the same with the permanent school
fund Of the state, received by the
county for its bonds, as above sug-
gested. Therefore, l suggest that the
state loan to the counties the money
on hand belonging to the permanent school
fund, taking county bonds (where 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 and leases, to citi-
zens of the county under proper restrictions
or to others in case the same could not be
loaned TO citizens of the county. There
ln No sic To ln f4tn a ln
county would have those to handle the
money who had been elected by them and
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. II,
however. the counties can be entrusted with
fund then they can he trusted in the same
way with the management of the fund de-
rived from the state through the county
bonds as above stated. II any losses should
be sustained it would be BY the counties
and not the state. The constitution pro-
Yides that this money shall De put in circu-
ldtiOn-if not through county. state or ma
tonal banks, then through other securi-
ties and under such restrictions as 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 a law It would |
put in circulation over S2,OO00O0 Estate |
and county school fund.- which is now |
lying idle. and II would return in |
Interest to the available school fund for the |
state and counties not less than 100000 |
This is matter that ought to |
engage the earnest attention of our legisla- |
tors and if the above suggestions are not |
then pursue some o5her method |
that will accomplish the object-put the |
money II circulation and civ { us the inter-
est for the available school fund.
B. b. HAET,