The Farmington times. [volume] (Farmington, Mo.) 1874-1902, 1901-10-17

Unless the constitution Is changed
these securities must be paid off by
taxation, and then the proceeds will
have to be invested In government
bonds bearing a very lon rate Of in-
terest aud the amount paid to the
districts from tho State fund will be
greatly rednoad
In this case, either the schools will
suffer or local taxes Cor school pur-
poses must be increased.
IL :k= ms-e wealthy districts this
burden might be borne, bot In the
hundreds OF smaller and poorer dis
tricts the schools would have 10 suffer
by reason Of the decreased fund avail
able.
Following is we'll. written article
on this subject from the pen Of one of
the most intelligent cilizons Of the
State, and 1t Is well worth the careful
consideration Of every friend Of public
education Ia Missouri:
Editor Democrat: have read with
interest your recent editorial on the
State school fund. believe you re-
lect the intelligent sentiment OF the
State when you say, 1.-THE practical
thing to do Is to adopt the consli,u.
iional amendment submitted by the
last General Assembly, confirming
these school fund certificates as sacred
obligations, providing for the invest
meat Of future Accommodations 10 mu-
Dioipal, county or school district
bonds, and for the reduction Of the
present tax from 10 cents on the 500
to three cents"
Those who oppose the adoption Of
this amendment TO the constitution
evidently have not considered the ulti-
mate effect Of such = course. When
the present system Of school fund GER
lifcaies was inauguraied thirty years
ago, the State bad a large bonded
debt bearing high rate Of interest,
aud the transfer OF the States obliga-
tons from the individual bondholdcr
10 the school fund was a wise and
busincsslikc transaction 10 which both
the schools and State were benefited.
A new condition now conironis US.
The State constitution (See. ., Art.
~ expressly provides that school
moneys can only DO invested in the
bonds Of the State Of Missouri or Of
United States. The bonded debt OF
this State, exclusive of the school fund
obligation, will be fully paid within
the next two years.
Should. therefore, the amendment
to be submitted TO the people next
year, which confirms as sacred oblIga-
items the certificates now In force and
provides for the investment OF future
Accommodations in municipal, county or
school district bonds, be defeated, the
only alternative would be to continue
TO levy tax for the payment OF the
school certificates, which tax when
collected would, under the consliiu,
ton, have TO be Invested in govern.
ment bonds, there being no State
bonds TO invest in.
In the absence Of an amendment to
the constitution, the bonded debt,
which includes the 1893, $50 AZ
held in trust for the schools, must be
annually reduced by not less than
S25O,000. This, ~ I have stated,
would have TO bo invested in govern.
ment bonds. These bonds command
premium ranging oil the way from
eight to lhirty-two percent. As you
stated in a recent issue, bonds which
bear only two per cent command
premium Of eight per cent, and Il
would therefore require four years
interest to cover this premium alone.
This investment would, besides, re-
duce the earnings Of the school fund
nearly two-thirds. | do not believe
there Is a practical business mAn In
the State who would recommend such
transaction.
This question Ia too important, OF
too great concern to all the people to
be made the subject of mere partisan
contention. Those who believe that
Il would be better to have the State
pay this obligation and invest the
money in government bonds. which
would have to be done II the amend
mcut 10 the constitution to be voted
on next year Is defeated, have an IN
questioned right to urge the adoption
Of their method, but whatever Discus
sion there may be on tbis subject
should be above and beyond The pale
OF ordinary politics.
Instead Of an effort 10 mystify the
public mind there should be an earnest
purpose for in,elllgen, discussion.
The issue which The people must
determine next year Is whether tho
State shall hold this 81. 393, S3s. az In |
trust, the interest thereof ta 90 an.
nually to the support ci our schools,
aud the future accommodations Of this |
fund TO be invested In municipal. |
county or school district bonds, or
whether thls o. 1913, $780, AZ shall be |
collected from the people and invested
In government bonds, By which the
earning capacity Of the iuBd would be
reduced practically twe.thirds. The
defeat Of the amendment 10 be voted |
on next year would leave no siterna-
Tive bat 10 levy the tax and Invest The