Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1892-08-25
How the Debt Was ssReuuceU."


On January 1. 1865. the state debt was,
as has been shown, $50, 094 ,90S,
Under the act of March II, 1867, 3d.
94f, 900 of consolidated bonds were is
sued, bearing 6 per cent. interest, dated
January 1, 1865, to redeem matured
coupons on railroad bonds
The debt on January 1, 1869, after
four years of republican rule, was s21,-
675. 900, a reduction of s14, 1890
But the story of that reduction is a
story of crime.
Gen John b. Gray, as agent for the
state. collected from the United States
for war expenses Sc, 472, $50. So, and of
this sum only "a, S6;, 924 30 was used for
the reduction of debt created by those
expenses. The republicans sold the
stock which belonged to the school
fund, held by the state in the bank of
the state of Missouri to James Il. Eads
for :! IFS. 635.50. which was paid in rail-
road bonds and matured coupons from
the same and the net proceeds from the
sale of the railroads. 6,O)6, OBS, for
which the republicans gave away $780,
900, 900 of securities was also applied to
the reduction of the debt Interest
taxes were collected, $40 cents on the
500 of assessed valuationl for the year
ended September 30, 1858, amounting
to the sum of s1.529, 52S.4 A. Interest
taxes were also collected during Octo-
Der, November and December, 1868,
amounting to $3.50. 742. OF, and finally
the state school money, amounting to
$40. 2s5. 81, that should have been dis
tributed to the school children in 1866
and 1867, were withheld and applied to
the reduction of the debt.
The state school moneys Withheld
and not distributed to the children dur
ing the war are not included in this
Systematically such as were withheld
after the close of the war and during
Gov. Fletcher's administration.
The recapitulation here made shows
the money at the command of the re-
publican officials from January 1.1s65,
to January 1, 1869, which could be
properly and improperly used for the
reduction of the state debt:
War indemnity money amount
uSedl Observation-Disclosures. .--..S 4,co3s%LSJ
Interest taxes collected for the year
ended September 30 1865. 1.5sa.sss. A
Interest taxes collected in October,
November and December. 1863 $50. 142o7
Net amount received by the state
from the sale of S35, 900, 900 of
railroad property on which the
state had first mortgage for
ssI. 5000 e,Oo6o3a 90
Sale Of bank stock belonging to
state school funds to J. b. Eads.- LIS, so
State school moneys withheld in
: 1865 an 1867. .-....--..--.-------.. s691214
Total available means ..-sI4. -es, al O5
In explanation of the last item it is
proper to state that the revenue taxes
collected in 1865. 1866 and 1867 amounted
to q, ST., ass. 81, one-fourth of which,
1869, 372 IA. should have been distributed
in 1866 and 1861 for the support of the
public schools, but was illegally with
held and used for the reduction of the
state debt
As a matter of fact, however, the
debt was not reduced by the total of
$14, SOS, 241.05 made available for that
purpose. 1t was reduced by but $l4,-
419, 90s. What become of the $47s, 3S3. 05,
which represents the difference? The
most charitable explanation of the dis
appearance of the sum as factor in
debt reduction is that it was fc- . sec
ond time ''misapplied."