The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-12-16
THE STATE HAS NO DEBT
Its Railroad Stock Worth as Much as
the State Owes.
THE AMENDMENT REQUIRES EDUCATION
Is There Any Way to Give This Education
Within the Eight Years Without The
Issue Of Bonds For Such
Purpose?

| was talking yesterday with one of the
wisest and most progressive men in North
Carolina-a broad guaged business man,
who takes a deep interest in public af-
fairs but has no connection with politics
and has no political ambition or any axe
to grind. He is a good citizen and is
concerned merely as a thoughtful citizen
in the education of all the people.
81 do not see," he said yesterday, chow
the education of the children can be ac-
complished, in accordance with Governor
elect Aycock's and the Democratic plat
form promises, from the ordinary reve-
nues of the State. The tax limit of Sc 23
cents has already been reached in most
counties, and in not few counties spe-
cial tax is imposed for such necessary
improvements as bridges, court houses
and jails.
1.-THE people have been promised great
improvement in public schools. How is
that promise to be kept? There are only
two ways that ] see:
First increase the tax-rate for schools.
Owing to the limitation for taxation in
the Constitution, it is doubtful if any ma
terial increase can be made without de-
nying the counties enough tax to pay
their legitimate expenses.
Second Authorize the State Treasurer
to issue bonds in the sum of two mill
lion dollars, bearing interest at the rate
of 81 or per cent, during the next
eight years, at the rate of $2500 each
per annum. Let the $250,000 each year go
into the school fund. Supplement that
each year by an appropriation of 100000
(if possible) which would give an addi-
tional $500 per annum to the school
fund. This would say TO the people in
unmistakable terms that the men who
framed the Constitutional Amendment
had in view the education of the children
and were ready to secure it by pledging
the credit of the State as well as by tax
ing the people.
Now / know that it would be extra
ordinary to issue bonds to secure money
for public education but it is an extra
ordinary time in North Carolina. 1t was
an extraordinary proposition for the peo-
pie to say that after 1908 no young man
coming of age should be permitted to
, vote unless he can read and write. That
is something new in North Carolina. 1t
is extraordinary. Can the children be
made to learn so that they can vote by
1908 without some extraordinary effort
l do not think so, and that is why
, suggest an issue of $250,000 yearly for
schools to continue until 1908.
THE State of North Carolina is practi-
cally free from debt. 1t is true that it
has outstanding bonds in the sum of six
million dollars in round figures, but it
owns stock that today would sell for
more than the entire State debt.
1.-THE State owns three million dollars
stock in the North Carolina Railroad. 1t
could be sold today as a whole at $175
per share (the market value of individual
shares is about $500. which would let the
Treasury realize S5,750O0O for it. The
State owns 81 200 600 worth of stock in the
Atlantic and North Carolina Railroad
which could be sold for $480,000 These
two investments, if sold would put the
State out of debt If not Sold they will
bring enough income to pay the interest
on the entire debt when refunded at
three or three and a half per cent.
$50 you see that the State now has no
debt at all 1t is free from debt, practi-
ca1ly. This new issue of bonds would be
the only real debt the State would have.
Why not meet the extraordinary necessity
for education, created by the Constitu-
tional Amendment by an extraordinary
method? That is the only way to secure
an adequate fund