The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-10-13
Several CommOnwealths Duplicate
MissOuri's Method in Investment
of Permanent Fund.
CARRINGT0N ON THE SYSTEM.
State Superintendent of Schools
Cpholds the Plan Which Has
Resulted in Great Ben
eft TO the State.

REPUBLIC SPECIAL.
jefferson City. Mo. Oct. la-Superintend-
ent OF Schools W. T. Carrinston to-day ad-
dressed the following letter TO the Globe
Democrat relative TO the school fund OF
Missouri:
From the fact that you have at all times
manifested great interest in the schools.
conclude that you will be glad to publish
the following.
In 1872 the State legislature found that
the State owed the school fund about $780,
90. and issued Stat. certificate OF tn
debtedness to the school fund, State
bond bearing per cent and fixing a definite
date Of payment. This recognized the States
obligation and put IT into tangible form.
In 1875 the State Board Of Education, un-
der the authority of the Constitution, sold
It's nited States bonds and purchased State
bonds Considering that tnised States bonds
were above par and State bonds below par;
mat the State bonds bore higher rate of
interest. this transaction increased the per-
manent funds about s40J ole and the annual
apporuonment to the schools more than
SHv" Another fact worth consideration
n re Is that the State showed its faith in
It's own bonds by investing its permanent
school funds III them. The result was that
our State bonds Were soon at par and have
never since been below par
IN loSl the State Legislature directed the
Issuance OF Consolidated certificate of in
GebtednesS i'll lieu of all school fund Sc
curities. The State bonds and the previously
issued "certiiicate of indebtedness" two
forms Of securities to the school fund but
Of indebtedness by the State, We're can
celsd.
This Consolidated certificate of indebt-
ednesS. issued by authority of the State
just as renewal bonds issued, Is signed
10y proper authority anu bears ,he seal of
the State. IL has definite rate of interest
ana falis due al a stated time. and is the
otate pledge L" pay the state GoaTd of
Education. 10 be he'd in trust Tor the school
iuIid. A-,si.itr1. II IL. To all Int.nts anu pur-
poses, a boiu, and ~ Just as secure as the
state Is Responsible.
1T may be uI interest TO some of your
readers To know that ia several other States
their permanent school funds nay. the slu!..
the same. called by the same name. Ger
t;icate of Indebtedn, S.. The annual inter
cst Is paid from the state Treasury amount
Ing To about s-Oo.VVc Onio calls hers Ire
ducibl" State Debt Kentucky denominates
1t An Cnrede.maJ!e state Bond Califor-
MIA deslsnates IL Bond Held in Trust for
School Fund
Michigan used all the money arising from
the sale OF sixteenth sections in liauidatins
a redeenable d, bt. and issued a Seven Per
Cent Bond in leu thereof. other funds are
INVESTED III a Five Per Cent Bond Minnie
sofa calls her sCGooi securities I.and Con
tracts bearing ~ per cent. Illinois las in
corpOrated her scnoOl fund iatu the ConS;i-
tuition by providing a permanent and per
petuai levy directly for that purpose.
80 far as l can discover, no State outside
OF New England has any OF its school
funds in vested in United State bonds New
York, Pennsylvania. New Jersey and Indi-
ana have invested mainly in municipal and
railroad bonds. Kansas and other Western
States have dribbl.d out in small sums.
maialy investing in School District Bonds.
This accounts for the erection of many
neeilessiy large and fine school buildings
in the West. Texas has its available school
fund invested in state bonds bearing ).
and per cent. Other southern States have
their trust funds similarly invested.
From this II viii be seen that very many
of the b.:-; ST ties aye following Missouri in
own Understanding bonds. Certificates of
Indebtedness or other evidences OF debt.
No State has done better than Missouri un-
less il d. Illinois. She has Incorporated into
tin. State Consultation that the principal l.
ever to be- held sacred and inviolabie. AMI
that the equivalent of its interest is to be
as taxes and distributed annually
10 the schools. At present MissOuri's Ger
tificatcSi' ara reJeemab BILE In form. but no
BODY ever expects the State Board of Edu-
cation to collect: If so. the money must
he invested in United States bonds bought
at n premium. bearing only per cent
VERY respectfully.
wv. T CARRINGTON,
president state Board of Education.