The tribune. (Rich Hill, Mo.) 1900-1902, 1902-10-09
SCHOOL FUND DER.
44EFGA9E

funds iu any other securities that
bonds Of the state Of Missouri and
Of the United States is expressly
prohibited.
The language Of the constitution
Of 1875 is as followss mo part Of
the public school fund Of the state
shall ever be invested In the stock
or bonds, or other obligations Of
any other state, or Of any county.
city, town or corporation, and the
proceeds Of the sales Of any lands
or other property which now belong
OF may hereafter belong to said
school fund, shall be invested IN
bonds OF the state OF Missouri or Of
the United States. Sec. 9, Art.XI.
In 1875 the United States bonds
held in trust for the state school
fund were sold snd the proceeds
derived from such sale were invest
ed in the purchase Of Missouri 8
per cent bonds.
In 1881 the Missouri 6 per cent
bonds and the certificate of indebt-
edness for 5000, 900, belonging to
the school fund. were cancelled and
a consolidated 8 per cent tbirty-year
certificate Of Indebtedness for $2,-
COG 600 was substituted therefor, as
provided in an act of the General
Assembly approved March $685..
Five per cent twenty-year certiti-
Gates Of Indebtedness have been
issued for accumulations in the
school fund since 1881, as author
lied by an act approved March
81, 1883.
The S per cent certificates issued
under this act aggregate $4,000,
making the total outstanding eertii-
Gates January /, 1901, S3,I5S,ooo.
Section ) Of the act of 1883. pro-
vides that thereafter, when any
moneys shall be paid into the state
treasury, from whatever source de
rived, whether BY grant, gift, devise
or from any other source, to be
added to either the public sehoo.
fund" or the SEMINARY fund.- Of
the state, and when the same shall
amount TO $1,000, the said Board
of Fund Commissioners shall ISSUE
a certificate of Indebtedness, ETC."
The effect of this act is to Great.
s S per cent nterest-bearing deb.
for every dollar paid into the stat'
treasury to the credit of the sehoo
and seminary funds. Not only arr
certificates to be issued for the or
binary income Of these funds. bu
for moneys derived from any sourc'
whatever.
AS an illustration, the legislature
in 1883. appropriated over Saoo,
COO from the state AM
other funds TO increase the capita
of the school fund. These appro
priations became s per cent certih
Gates of Indebtedness as soon a
they were available. In 1893 Ed
T. Orear, superintendent Of insur
ance, deposited money in the stat
treasury to the credit OF the schoC
fund, which was derived from un
claimed dividends in insolvent II
s%urance companies. On July
| 1898, these unclaimed dividend
became a S per cent liability Of II
, state.
II Andrew Carnegie should tran
mit to your state treasurer $1,000
{ ooo, and express in his lette,
transmitial hat il was a gitt to Il
; public school fund OF Missouri, Il
fund conn issioners would immed
J ately increase the public debt |
issuing a S per cent tweniy-Ye
certificate Of Indebtedness for S.
GOO. 900.
y The act Of 1888 makes toe inls
: est-bear'ng obligations Of Nilsson
contingent upon inc liberalily
u any person or body Of men on earl
= for whoever might choose to endo
the public school or seminary fun
would create an iniefesl-beai ii
debt for the iull amount Of su.
endowment
m Your constitution provides n
e The General Assembly shall ha
c no power to contract or 10 sulhori
y the contracting OF any debt or u
y bility on behalf of the state, or
issue bonds or other evidences
y. Indebtedness thereof, except in
l. following cases;
N First. Ia Teoewal Of exist
D. bonds when they cannot be paid