The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-10-03
Auditor Seibert Shows That It
Has Been Carefully In
vested Since 1871.
AMOUNT GROWS CONSTANTLY.
There Has Been No Loss Since the
Terms of Governors Fletcher
and McClurg-The Exact
Figures Are Quoted.

In response to the criticisms leveled at
the condition OF the State school fund. State
Auditor Seibert yesterday sent to the Globe
Democrat the following letter:
To the Editor Of the Giobe-D-mocrae:
81. Louis, Oct. during the past week
the Globe-Democrat has repeatedly made
the statement that the Democrats have
looted the school fund of Missouri"
In order that your readers may understand
how grOundless those statements are. I
respectfully furnish you this brief history
Of the origin and management OF the school
fund Of the State.
The permanent school fund" had its
origin in 1897 by an act OF the Legislature.
The State Auditors report for 1898 shows
that the fund contained at that time $751;
c5153. 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 1869.
II aggregated So. s6.. 81.
In $50. during Governor Fetcher's adj
ministratiOn, the State Bank stock was sold
and the proceeds used to cancel an equal
amount OF State bonds.
In 1861 the State received from the Federal
Government on account Of claims for war
expenses S5.i12. 2ss. 81.
The law required that one-fourth Of tho
State revenue. together with the interest
"a NNN pei iilG SGiItD IutlI,De ulSlIlDuteu
each year for the support OF the public
schools.
This provision Of the law was wholly ig-
nofed rom 1861 10 1s61, during which time
the school fund lost 81, SlS. us.
To make restitution for this 81. sos. 4B the
legislature. in lS1. placed s.. 10000 OF the
six and one-half million dollars received
from the Federal Government to the credit
81 the permanent school fund. This. with
receipts from other sources. brought the
fund in 1851 up to 81, $685. ~. During the
next four wears Including tha tarrnc Of
Governor Fletcher and Governor McCIurg,
the fund remained uninvested.
In Hs1l. during Governor Il. Gratz Browns
Term, Government bonds to the amount OF
SL,-'S,lt5 We're purchased. and In 1872 the
S,Is33o.29 proceeds of the sale of the State
Bank stock. which since 1866 had been rep
Resented by Cancelled State bonds of equal
amount. was by act Of the Legislature CON-
verted into a state certificate of indebted
ness for s9to.co. to reimburse the school
fund for the PRINCIPAL and interest since
date Of sale in 1856; This was the first Ger
4 tlfcate Of Indebtedness" issued by Missouri
to the school fund. and bore s per cent in
terest.
In 1875. while Charles II. Hardin was
Governor. the State Board OF Education,
having been notified that the United States
bonds held by the school fund had been
| year. ordered sl,6Si,oso Of the Gove vi ina
bonds sold for s1.9l3. SGs cash. and in leu
thereof purchased ~sl.sis.oCo Missouri State
on January 1. 1851. the permanent school
fund consisted OF:
4 AiiSSpuEl . per cent o0rdS $3.50, 70 ina mn ~
Certificate Of Indebtedness eo 1aa ~
Cash uninves'ed --------.. ...-..-. ~ 81
Total ---..--. ......- g oa .9a q,
by an act Of the Legislature OF ISsl. the
Sto"W certificate of Indebtedness issued by
Governor Brown and the 10000 State
bonds We're cancelled and a Consolidated
state Certificate of Indebtedness ro- So e09.-
90 was issued. So universal was the APP
prevail OF this act that the bill received ev-
cry vote in the Senate. and all but two in
the House.
There has been n steady increase IN the
fund. until to-day il amounts TO g 15S,-
Sa3. 10. all Of which is held in trust BIZ the
State for the benefit of the public schools.
The interest. together with Oae-third CT
the State revenue, is distributed annually
TO the public schools. TIE annual interest
Is paid by the State out Of the very small
State tax levy.
The only loss the fund has ever sustained
was from the failure to properly invest the
receipts of the sale Of the State Bank stock
and the partial Inisappliance OF that por-
ton of the State tax belonging TO the pub
lie schools during the administration of
Governors Fletcher and McClurg.
Missouri also has 4 seminary fund.
amounting to 81. 90, s3a. AZ, invested like the
public school fund. the interest on which
goes TO the support Of the State University.
the Agricultural College and the Rolla
school or Mines. j. NJ. SEIBERT,
State Auditor.