The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-01-19
THE SCHOOL FUNDS.
Urgent Necessities Have In
creased Expenses.
LETTER TO THE SCHOOL BOARD
Mr.. Thomas w, Prosch Points Out the
Necessity for Economical Manage
ment-State Of Finances.

At the last meeting of the school board
of Seattle, Mr.. Thomas ID. Prosch, one OF
the newly elected members of the board.
submitted letter upon the finances OF
the schools 1t was referred to at the
time and placed on file, but it is of suf-
fcient general interest to warrant publ
cation in full 1t is as follows:
For my own information, and possibly
for that of other members OF the board
and OF the public, have OF late been IN
yestigating aud considering the financial condi-
tion of the Seattle school district. Ii IS well we
should know as nearly as We can our ability,
that we may thereby be prevented from making
serious and grlevous errors IN the management
OIL the very important affairs Entrusted 70 US
The results OF my Investigation were both as
founding and appalling / knew that the dis
trict was i'll debt, but in the lack OF published
statements. and as new member OF the board,
had partial idea only OF the extent
From the records now learn that two and a
hall years ago the district was practically out OF
debt. In other words, it owed only 81 ,2so. 20 ON
the lst OF July, 1855. About that time, however,
bouds were issued to the amount of 900, the
money being used in the building OF the present
Central and South schoolhousesi Including
these bonds the debt had grown to sl56,Ooo.l4 by
July !, 1883.
During the following year more debt was con-
tracted, the whole amount on the LIST OF July
last being s2S2 79o.07, not including interest on
warrants then outstanding, the amount OF
which cannot be asaertaned To this huge
the immense amount of sls0,0i346, making the
face value of warrants outstanding at the OPEN
ing OF the present calendar year, S252 S43.j3. Is
timating the interest due ON these bonds at .
per cent, and the burden is increased at once to
$215,9S5, to which the bonds-sl50, eO0-are TO be
added in aseertaining the indebtedness OF the
district at the present time about $4,000. This
showing Is OF the present and past.
The outlook for the future is no better. The
schools of the city have cost $4,000
during the past six months, not
ftaof elf and
buildings. 1t will be fourteen months before
taxes again become delinquent and the district
can hope Tor any large amount of revenue. sup.
posing that the schools during that time cost
only 10 per cent more per month than they hay
cost during the last half year, the cost OF their
maintenance during the ensuing fourteen
for interest on warrants during the same period,
and only $4,000 for new buildings, including
also the Sf59.uo0 of bonds, and the obligations
this board will be called upon to face VIII be
found to amount to $659,5lG This may be re-
duced by an amount not likely 10 exceed $780,
600, leaving the district in debt March /, ls92,
about $469, 80.
One OF the troubles confronting the board is
to get through this trying period. Under the
circumstances depicted it is very certain that
few or none of the warrants drawn upon the
school fund during the next fourteen months
will be paid in cash until 1898 or 1894. The
moneyed men of the city have been early &c
realize the situation, and have recently refused
to buy more of our paper. Upon their refusal to
buy, the market value last month fell 10 per
cent and for the first time in many years if not
the first time in history, Seattle school war
rants went begging at 50 cents on the dollar:
This is grave matter, amounting to a financial
crisis as far as the schools are concerned.
1t is not necessary TO argue upon the policy OF
mourning so vast an Indebtedness Ill so short a
period of time, nor is il advisable now TO either
commend or condemn the methods of our pre-
9cessors in its contracting. 1t is for us 10
know the truth, to understand the situation,
and proceed to remedy the evils by
every means at our command. In August last
an effort was made to sell 100000 of bonds
Four bids were received: the one considered
most advantageous being TO furnish the money
at per cent interest per annurn and give prem
iun of 81 500 besides. 1t was accepted but the
agent making the offer, upon consulting his
principal, found that he would DE unable 10
carry out his proposition. In anticipation OF
this money large expenditures were inauguratei
and have since been made, upon which the dis
trict is paying 10 per cent instead of the less
than contemplated. II this money could now
be obtained it would, with taxes coming in, re-
deem all outstanding warrants, but il would be
even then only a temporary measure OF relief.
4 new debt would at once begin, and a year
hence the district would be almost as straitened
in circumstances as now.
The fact is we are living beyond ont means,
not paying our ordinary expenaes, and leaving
every dollar of debt we can cC4tract for poster
Try to pay. A change is demanded lmperativeiy
and cannot be effected day too soon. No mat.
ter how small the expenses, every one not posi-
lively desirable or absolutely necessary must be
prevented. The interests OF the children 10 be
educated and of the citizens paying the bills re-
quire this, as well decent regard for the
rights of teachers and other employees TO com
pensation for their services in money worth l0f
cents on the dollar Pursuance of the same
system in school matters that is followed III oul