The Cape Girardeau Democrat., 1897-01-16

any obligation to pay something to one stand
: ing as creditor-would beyond doubt fal
within the prohibition But a certificate o
| the KIND suggested is not debt OF that char
acter. Can II be properly said to be a debt a
all: The certificate would be an obligation o
the state payable, in effect, to ITSELF II woulC
! never leave the possession OF the state.
could never become the subject OF individual
ownership. 1t would therefore, I assume
be an obligation the state could change
perhaps cancel, at pleasure. 1t woulC
simply be means provided by the state tC
support one OF It's own institutions, which, il
not supported in that way, must be in another;
and no matter what way may be chosen it can
only be done by taxation. Let US test 1t In
this way; Let US suppose our general revenues
to be sun1cient to Justify q provision Of this
nature out OF them. Let us suppose the legis-
lature to be destrous Of setting apart q certain
amount OF the annual revenues for the support
OF the university, and TO put it in a form To
make that amount both certain and permanent.
Would not the legislature have the power to
authorize the issuing of an interest-bearlng
certificate, and TO direct that so much of the
general revenue be set apart each year as
that it be applied to the maintenance of the
university, in lieu Of q special an
nual appropriation? For years past
| the institution has been supported by
specific appropriations out Of the general
fund. Could not the legislature. IL it cared to,
establish q fixed charge by general law against
that fund IN place OF an uncertain and varying
charge fixed by special appropriation laws
passed from time to time: II n certificate the
principal OF which is on-payable, but the IN
tereSt Oh which Is made charge on the rev.
| enue fund, can be conStitutionally issued then
! the constitutional question involved in this
| discussion. II not eliminated is narrowed to
one Of funds If IL be conceded that a certifi-
| cate OF Indebtedness can be issued as charge
on the revenue funds, then the certificate is
| not such q debt" or evidence of debt as the
4Ith section of Article " forbidS the general
| assembly to contract: and the only question
remaining is whether IL can be made a charge
I on the interest fund. To my mind this presents
| the greatest difhculty. As l have already
/ shown, section IA. Article Y. provides for a
| tax Ito pay the accruing interest upon the
| bonded debt and to reduce the principal there
| OF, etc: and 1t also provides that whenever
| SAID bonded debt Is extinguished, the tax pro-
| vided for in this section shall cease to be as
sessed." Five years hence the bonded debt
Will be extinguiShed. What, then would be-
come OF the certlhcate OF indebtedness? II tho
tax should then cease it would thereafter be
necessary to pay the interest out OF the reye-
nue. fund or cancel the certificate. And il that
be true, would it not be violative OF the conSti-
tuition to use any part of the interest fund for
any purpose other than that OF paving interest
on the bonded debt and reducing the principal?
Can permanent debt or obligation be created
so as 10 continue any portion of the interest
tax after all bonds have been paid and retired?
To both OF these questions the general assem-
than one occasion. In 1881, and severa.
times since, the legislature has author
lied the issuing OF non-payable, non-nego-
table, and non-tranSferable certificates of in
debtedness, TO be held in trust for the benefit
OF the public school and seminary funds.
To prevent any misunderstanding perhaps I
ought to say that when speak OF the univer-
sity include the school of mines.
PUBLIC SCHOOL SUPERVISION.
A large number OF the leading teachers Of
the state have pressed uDon my attention the
Importance OF county supervision of the public
schools. Supervision OF these schools Is now
had IN the larger cities and towns and in sew
eral counties. 1t is desired to make county
SnDHFElSl0n nhi1U1tOTV instead N r1oiGc cfra
as ii now is by law. The reasons for this
change in the law are strongly and fully stat
cd in pamphlet recently issued by authority
OF the State Teachers association. and which,
L am informed, will be furnished each senator
and representative. Whatever tends to better
the public schools should have our cordial and
prompt support; and it seems to me that the
pamphlet referred to makes it very clear that
the change in the law therein advised should
be made.
BOARD OF PARDoSs
In my last annual message called attention
to the adviSabilty Of establishing board of
pardOns. The suggestion seemed at that time
TO meet with general approval. and bill eStab-
fishing board Of pardons and prison inspec-
tiOn was introduced. IL failed OF passage
however, chiefly. If not wholly. because of OBJ
jections made by some to so much OF the
measure as related to inspection. 1 renew
my recommendation for board OF par
dons, and for the same reasons 1 gave in
my former message need not repeat those
reasons here, as those who may care to ex-
anime them can do so by reference to pages
2s-s Of the appendix to the journals Of 1885,.
BUILDING AND LOAN SUPERVISION
The Thirty-eighth general assembly also en-
acted law placing building anu loan
associations under state supervision. The
duty OF supervising these institutions was
assigned to the state treasurer, but
the great bulk of the actual work OF sunervis-
ion was delegated by Mir. Stephens to his
deputy, Hon. H. l.. Gray. who has proved to be
most capable and efficient officer. l beg
leave to call your attention to the following ex-
tract from a recent communication from the
head OF this bureau:
by an act OF the last general assembly
building and loan associations were placed un-
der the supervision Of the state treasurer. His
first annual report to the governor is printed
and is being distributed; it gives the financial
condition OF each association as well as a re-
view OF the law, its workings ard its defects,
with suggestions of needed amendments
There are ssi OF these societies in Mis-
souri,, having resources OF over Ss6,OOOCOO.
All the states, l believe, which have
relatively as many. Of the cor
poratiOns as ours, have supervision.
All quasi public corporations need inspection,
and, without iuvidious comparison, building
and loan associations need it especially as they
Go business for the most part with those OF
small EieanS; they are organized for the pur-
pose OF encouraging thrift and home building,
which is accomplished by Self-imDoSed small
monthly payments. Then. too, for the past ten
years there has been tendency to enlarge the
scope and change tue methods Of these instftu-
tionS, which, in the judgment OF the super
visor, has been carried beyond authority under
permitted. As the report TO which have re-
ferrcd indicates the changes thought to be de-
Sirable. l respectfully recommend il to you,
rather than to undertake to do that which want
of space fOrbdS.
"Orly IL associations have been placed in
the fanGS NJ receivers by the supervisor he |
informs me that about 80 are in liuuidation or |
have liqlIid2ted under his advice: others have !
matured and gone out. having accomplished /
the purpoSee for which they were chartered |
Each association has been examined. some /!
twice ana am informed that with but few ex- /
ceptIOnS they are solvent and are promoting
their business in way to bring satisfactory |
results"
The governor favors revising and perfecting /
the textbook law.
Calls attention to the settlement OF the |
boundary dispute between M>Sorri and Iowa /
(the north line OF Mercer county,.
Praises the system OF bank inspection and |
favOrs increasing the number Of inspectors.
Favors amending the revenue law as it is |
seriously defective and needs improvement.
CONCLUSION.
n concluding this communication, which ia |
the last will have the honor of making to the |
general assembly. express the hope that your |
Sojourn ut the capital will be pleasant and /
that your work may prove OF advantage to the |
state. / have seen much recently in the press
that this legislature would be unusually hos
tile to corporations and other special inter-
eSts. To these reports | have given littls
oiense 1 would advise that all legislation |
should be along high lines and characterized
by wise conservatism and the spirit OF absolute
Justice, The state can not afford to make war
on any legitimate interest-for war means to
tear down and destroy. not to create and build