The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1896-02-19

ne COUteutlOu 10 tudG tuS CUCt al
fund and not the school fund is eo,itled
to the S243,816 81 net profit, which
has accrued to December 81, and not
the school fund as provided by the new
Constitution No part of this amount
is an unearned profit, as has been pub
lisbed, but, on the contrary, it is an
earned profit. o. December 81
there was an 'unearned' profit of $685.
571 IS, which is all the main profit ex
istipg outstanding. which represented
the States profit (added at the time of
shipmeut) on goods uusold in bands Of
county dispensers on December 81.
This 'unearned' profit will not 60 to
the general State fund, but will 60 to
the school fund when it shall have
accrued, as it will have accrued after
the new Constitution becomes operative.
1.-The new Constitution provides that
the net earnings of the State dispen-
sary shall 60 to the school fund from
January /. AS that clause of the Con-
stitution making this specific provision
is not retroactive and only makes pro-
vision for specific application of the
net earnings of the State dispeusary
from January 1, then it is reasonable to
assume that all net income to the State,
from any source, not set apart by
statutory enactment or constitutional
ordination for specific fund goes to
the general Cor unspeci6c) fund of the
State. Well, net profit to the State
to the amount Of S243.816 81 had
accrued to the State to December 81,
aud before the new Constitution had be-
come thing of life. % January the
1st I closed my profit and loss account
and passed this amount to the credit of
the State treasury-general fuud-and
it stands to-day on the books as liza
bility due the general fund. In No
venber loan was made to the treas
ury of $4,000 from the surplus fund
Of the dispensary. This amount was
charged to State treasury, general
fund aud the difference between the
two sides of this particular ledger ac-
coun, is $193,8l6 81 in favor of the
State. This balance is a net earned
pro6t-uot an uuearned profit, as has
been enormously stated-and my con-
teption is that the school fund cannot
become the beneficiary Of any part Of
the cash surplus Of the State dispen-
sary hereafter to accumulate until this
liability of Sl93.S16 81 has been paid
into the general fund of the State,
which will be eighteen month or two
years. OF course all net profit accru-
ing from the State dispeusary from jan
uary will be entered to the credit of
the school fund from time to time as
the profit arises, and when the general
fuod account, which stands on the dis
peusary ledger as liability, shall
have been liquidated. then it will be in
order to turn over to the school fund all
cash surplus as rapidly as it accumu.
lates.
.'It must be remembered that the net
accrued profit of $243,816 81 to De-
cember 81 does Bot represent that
amount of profit in cash, but only cash
in part 1t represents that amount in
assets iu excess of the total liabilities
of the dispeusary. Those assets con-
sist Of cash. merchandise. supplies and
other quick assets. and are as much Of
net earned profit as if every dollar
was in cash. So you will readily see
that probably there will be to the credit
of the school fund of the State as pro.
vided by the new Constitution two hun
dred thousand dollars before dollar of
actual cash is paid into the school
fund"
LIGHT ON A DARK SUBJECT.
There is always tangle about the
time levy takes place on account of
the differences in the time Of making
appropriations and levies. Comptroller
General Norton has given me an in-
terestiug statement on the present stu
alton.
"The real condition which con.
fronts the State is this, be
said: "The appropriation for
1896 will amount in round numbers to
$3.50, 900. The General Assembly is
now appropriatipg moneys collected
from 1894 and 1895, and from such
other revenues as the State may have
during 1896. which will not be over
$4,000. The total revenues from all
sources at present are $775, 900, which
it can be seen at glance, will leave a
deficit of $175,00O. They propose to
meet that by using the unearned dis
pensary profits, which they report to be
$193, 900, which would. of couse. put
the State on a firm basis for 1896.
But We have 90 assurance that the
same conditions will not exist in 1897,
and the question arises as to how the