The state herald. (Holyoke, Logan County, Colo.) 1887-1921, 1892-07-22
eoLoRApo's SCHOOL FUND.
over . Half M,ll,on Dollar. Invested liz

Over Half Million Dollars Invested In
worthless state Warrants.
Every citizen of Colorado who desires the
welfare Of its schools will be interested IN the
following article taken from the July number
OF the Colorado School Joarsal'
"The public school fund Of Colorado Is
composed Of 10y, permanent fund; (b), In.
come fund,
"The permahent fund consists Of the pro
cccts Of such lands as have heretofore been,
or may hereafter be, granted to tho state by
the general government for educational pur'
poses; also the estates that may escheat to
the state; also all other grants gifts or de-
Vices that may be made to this state for edu-
tuition Of Colcrado,.
"Ihc constitution declares that this fund
shall forever remain inviolate and intact; the
interest thereon only shall be expended In
the maintenance of the schools Of the state.
The state treasurer shall be the custo
dian Of this fund, and the same shall be Sc
curcly and probably invested as may be by
law directed. The state shall supply all losses
thereof that may In any manner occur (Sec.
Q, Art. IX).
"Statutory enactment authorizes the Invest
ment Of this fund, First, in the bonds Of the
state OF Colorado; second, ih the interest
bearing warrants Of the State Of Colorado.
Session Laws 1887, p. 36s).
"The income fund consists Of the proceeds
arising from the investment Of the permanent
iund; the interest on deferred payments Of
school lands that have been sold; and the
proceeds from school lands that have been
leased. Formerly the proceeds from leased
school lands were credited TO the permanent
fund; but the law Of 1887 recognized them as
properly belonging to the income fund, and
authorized the transfer OF them, is the securi-
ties In which they were held matured, to the
credit Of the income fund. (session Laws
1887, p. 36a).
"The amount thus transferred was more
than $4,000, and accounts largely for the
great increase In the apportionments for
January, 1888 TO January 1880, inclusive
The regular annual revenue from this source
Is about $4,000.
"The permanent fund amounts Mt presen,
to s956,359,ls, not including 100000 paid over
on the Creole land sales, but for good and
sufficient reason not yet turned Into the
treasury. OF this amount, $500, 900 are invest
ed in state capitol bonds at 81 per cent. in
terest OF the remainder, $3.50, S9O.57 ire
Invested In state warrants OF the issue Of
1887, lsss, 1889. These warrants bear inter
est at the rate Of O per cent per annum; but
they have yielded nothing as yet to the In
come fund, for the reason that they were
drawn against appropriations that were in
excess Of the constitutional limitations, and
are therefore in reality void. (See opinions
Of the Supreme Court, Colorado Reports, Vol.
NH, PIP. 3l6-sa9).
The overdue interest on these void war.
rants amounted at the close OF 1891 to nearly
SEQ, 0Oc, and this amount Is being yearly
added to by more than So, 900. All this the
income fund has been deprived Of, and will
continue TO be deprived Of 50 long as the loss
10 the permanent fund remains unpaid.
This cannot be regarded rs q very 'prohta.
bic investment Of that fund. OF course the
loss will be made good some day; that Is
guaranteed by the words Of the state consti-
tuition, quoted at the beginning Of this article,
to-wit: The state shall supply all losses
thereof that may In any manner occur II Is
only matter OF time, but time Is an import
ant consideration 10 the school interests,
crippled as they necessarily are by the with.
holding Of so large a sum, % per cent In
fact, from the annual state apportionmen,
fund. Further delay should not extend be-
You'd the session Of the next Legislature.
That body should understand In advance that
II will have no more important work In hand
than To provide for the full and complete
restitution nf the school fund deficit.
House BIN, No. $40, Eighth asscp.oly, IN.
PRODUCED by Mr.. Ammons, Douglas county,
was designed to meet the exigcncy, but ~ II
required an amendment OF the same article
Of the constitution Ms another Important bill
that had already passed, and As only one
amendment TO the same article can he pro
posed by the same Assembly, Mr.. Ammons'
bill could not pass.''