The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1893-04-01
Investment Of state school Funds.

Av NDSAAOOA - 1AA1~ADe
The word has gone forth to those
few manipulators who were person
ally interested in the passage of the
State Wagon Road bill, that not
withstanding the ''silver clause" in
the bonds they would be sold. This
statement came from an officer of
authority, and when it became
generally known the people were
pleased, not because the money to
squander on an impracticable wag-
on road would be forthcoming, but
because an Idaho 5.per-cent silver
bond would be recognized in finan-
cial circles. It would be victory
for silver. Where these bonds
were to be sold and two whom it
was not asked, because the low
rate of interest fixed precluded
their sale to Idaho capital, or to
state funds it was thought, but il
seems this is not the case.
incidentally we have learned that
the wagon road bonds will be
absorbed by permanent funds now
on hand in the state treasury. The
permanent funds include the school
fund and funds arising from the
sale of state lands. No safer invest
ment for our school funds can be
made than that of legitimate state
bonds, but there is question as te
legitimacy of these bond. There
is also a question whether the State
Board can legally invest the per
manant funds at less than7 per CEN
interest, while the state wagon roao
bonds draw only 5 per cent. Fol
lowing is the section of the stat
land law passed by the First Legis
lature and approved March 6, 1891
which authorizes the investment OF
permanent funds. Read it and
judge for yourself:
SEC. 81. The State Board shall
at their regular meeting, make the
necessary orders for the investment
or disposal of the funds derived
from the sale of public lands of thu
State Except university lands
then in the State treasury. Thu
| proceeds of the sale and rental OF
public lands of the State (othe
| than university lands), may be in
| vested for and on account of tn
specific purpose for which the land
were granted, and shall be invested
| in United States bonds, State bonds
or in first mortgages on improved
farms within the State; :
The annual in
terest on all loans herein provided
| for shall be 7 per cent.
This is the only way in which
the funds arising from the sale o
State lands may be invested.
We don't pretend to construe Thu
law, people can draw their own con
illusions. If the bonds are lega
and the interest within the provis
ions of the law, the investment i
safe one, but the people woult
not receive the benefits that woul'
acrue from loaning these funds OF
farm mortgages as provided, no
will the funds be as much benefited
thereby.
The General School Fund on tn
31st of last December was invested
as follows: State funding bonds
$4,000; first mortgage loans OF
| improved farms, $50,35O. All tn
permanent state funds can b.
loaned on gilt-edge real estate Sc
curities at vast more benefit t
the people than by an investmen
in bonds of doubtful legality, tn
proceeds of which are to be used i
prosecuting a more crazy schem
than that of inventing perpetua
motion.
| Offer the bonds to be issued O.
Workman's rotten wagon roa
scheme, if they are legal, on tn
bond markets of the east and
the capitalist don't want then
burn them; but don't, for God
sake, corrupt the sacred schoo
fund by devoting it to assist in tn
consummation Of such a damnabl
fraud.