The weekly intelligencer., 1900-10-13

IcNh tuc NtoeN- -Ns-- =
dly made the statement that the DEM
crals have ..looied The school fuDd Of
ilissoun.n
In order that yOnr readers may IN
ierstaud how grouhdless those state
nents are. | respectfully furnish you
bis brief history Of the origin and
Of the school fund Of the
state.
The "permanent school fund' had
It's origin in 1887 by an act Of the leg
isla,ure.
The state ,auditor's report for 1883
shows that the fund contained at that
time s45s, ,657 .SS, invested in the stock
Of the Bank Of the State OF Missouri.
This amount was increased from
time to time from various sources,
until, in 1890, it aggregated $685.
s6I &c.
In 1866, during Governor Fleicher's
administration, the state bank stock
was sold and the proceeds used to
cancel an equal amount of state bonds.
In 1867 the state received from the
federal government on account Of
claims for war expenses S6,4I2,2ss 80.
The law required that one-fOurih Of
The state revenue. together with the
interest on the permanent scnool fund.-
be distributed each year for the sup
port Of the public schools.
This provision of the law was
wholly ignored from 1861 to 1861,
during which time the school fund lost
81, 500, AIS.
To make restitution for this 3 1885,
AS the legislature, in 1867, placed
81, 800, 900 OF fhe six and one-half
million dollars received from the fed
eral government TO the credit Of the
permanent school fund. This, with
receipts from other sources, brought
the fund in 1867 up to s2,4O5, 1866 70.
During the next four years, including
the terms Of Governor Fletcher and
Governor McClurg, the fund remained
uninvested.
In 1871, during Governor b. Graft
Browns term, government bonds tc
the amount of si,65O,lOO were pur'
chased, and in 1872 the s7ls,2S5.2 .2i
proceeds Of the sale Of the state banE
stock, which since 1866 had been rep
resented by cancelled state bonds o.
equal amount. was by act OF the legls
IIa,ure converted into estate certif
cate Of indebtedness" for 100000, t'
reimburse the school fund for the prin
cipal and interest since date OF sale u
1866. This was The first "certihcat'
of Indebtedness issued by Missouri u
the school fund, and bore 9 per cen
interest.
In 1875, while Charles II. Hsrdil
was governor, the state board OF edu
cation, having been notified that th
United States bonds, held by th
school fund had been called for re
demplion in December OF that year
ordered s1,67I,O 900 Of the gOvernmen
bonds sold for sl,SIs,s66 cash, and ]
lieu thereof purchased sl,949, 600 Mis-
souri, state bonds.
On January /, 1881, the permaner
school fund consisted Of
Missouri Q per cent bonds. .s2,0Os,o 600
! Certificate Of Indebtedness. eOooOo
u Cash unlnvested. .......... -. 7S
S Total. ...... 80 tzisVs,'sE
By an act Of the legislature OF 1888
a the 5000, 900 certificate Of Indebtednei
issued by Governor Brown and II
81, ,OO9, 900 state bonds were cancelle
and a consolidated state certificate
: Indebtedness for g., ,sO9, 900 was ISSUED
> So universal was the approval Of tn
u act that the bill received every vote
q the senate, and all but two 10 Il
house.
II There has been steady increase
d the fund, until today IT amounts
II 50, sS,15S,S73.40, all OF which u held
trust by the state for the benefit Of Il
e public schools. The interest, togeth'
Il With one.third Of the state revenue,
distributed annually TO the publ
q schools. The annual interest is pa
g by the state out Of the very small sta
is tax levy.
'e The only loss the fund has ever su
2; tanned was from the failure TO proper
+ invest the receipts of the sale Of 4
J. state bank stock and the partial misa
D. pliance Of that portion OF the state Il
l. belonging to the public schools dunl
;. the administration Of Governo
Is Fletcher and McClurg.
o. Missouri also has seminary fun
ye amounting to q, ,229, ,s3s 52, invest
&c like the public school fund, the inter-
r. on which goes TO the support Of
r, State University, the Agricultural c.
in lege and the Rolla School Of Mines.
b. J. NJ. SEIBERT,
d, State Auditor.