Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1900-10-18
THURSDAY. OCTOBER 9. 1900. NUMBER z.
Missouri School Fund.
To the Editor of the Globe Democra

| schools, l conclude that you will be
glad to publish the following:
In 1872, the state legislature found
that the state owed the school fund
about 5000. 900 and issued Estate
Certificate of Indebtedness" to the
school fund, state bond bearing six
per cent and fixing a definite date of
payment. This recognized the states
obligation and put into tangible form.
In 1875, the State Board of Educa-
ton, under the authority Of the con-
st:tution, sold it's Z. S. Bonds and pur-
chased State Bonds. Considering that
L. S. Bonds were above par and State
Bonds below par, that the State Bonds
bore a higher rate of interest, this
transaction increased the permanent
funds about $400,0 900 and the annual
apportionmeut to the schools more than
$50, 900. Another fact worth consid
Grafton here Is that the state showed
its faith in it's own bonds by investing
its permanent school funds in them.
The result was that our State Bonds
were soon at par and have never since
been below par.
In 1881, the state legislature directed
the issuance of a Consolidated Ger
tificate of Indebtedness" in lieu of all
cobool f,n1 eoo,r;+,os Tho Ct.to Popda
and the previously issued Certificate
of Indebtedness. =" two forms of securi-
ties to the school fund but of indebted
ness by the state, were Cancelled.
This Consolidated Certificate of In
debtedness, F" issued by authority of the
state just as renewal bonds are issued,
is signed by proper authority and bears
the seal of the state. 1t has definite
rate of interest and falls due at stated
time and is the states pledge to pay
the State Board of Education, to be
held in trust for the school fund So, 909,-
900. 1t is. to intents and purposes, a
bond and is just as secure as the state
is responsible.
Ii may be of interest to some of your
readers to know that in several other
states their permanent school finds
have the same sort of investment. Wis
consin has exactly the same called by
the same name, Certificate of Indebt-
edness," the annual interest is paid
from the state treasury amounting to
about 100000. Ohio calls hers sir
reducible State Debt" Kentucky DOM
mates it IAN Unredeemable State
Bond" California designates it "Bond
Held in Trust for School Fund"
Michigan used all the money arising
from sale of sixteenth sections in liq
uidating a redeemable debt and issued
ga Seven per cent. Bond" in lieu
thereof. Other funds are invested in
ga Five per cent. Bond" Minnesota
calls her school securities .'Land Con-
tracts" bearing four and a half per
cent. Illinois has incorporated her
school fund into the constitution by
providing a permanent and perpetual
levy directly for that purpose.
So far as can discover no state out
side of New England has any of its
school funds invested in q. S. Bonds
New York, Pennsylvania, New Jersey
and Indiana have invested mainly in
municipal and railroad bonds. Kan
sas and other western states have drib-
bled out in small sums, mainly invest
ing in "School District Bonds" This
accounts for the erection of many
needlessly large and fine school build
ings in the west. Texas has it's avail
able school fund invested in State
Bonds bearing five, six and seven per
cent. Other southern states have their
trust funds similarly invested.
From this it will be seen that very
many of the best states are following
Missouri in investing its school and
trust funds in its own interest bearing
bonds, Certificates of Indebtedness"
or other evidence of debt. No state
has done better than Missouri unless it
be Illinois. She has incorporated into
the state constitution that the princi-
pal is ever to be held sacred and in
violable and that the equivalent of its
interest is to be collected as taxes and
distributed annually to the schools.
At present, Missouri's Certificates"
are redeemable in form, but nobody
ever expects the State Board of Educa-
tion to collect; if so, they must be
invested in q. S. Bonds bought at
premium bearing only two per cent.
Very respectfully,
W. T. CARRINGToN,
Pres't. State Board Education.
On the 10th of Decemb Der, 1897, Rev.
9 D0Dahoo nast0r NJ 7 Thnroh