The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-03-06

vfding that 500. 900 be borrowed from the
permanent or literary fund.- the State
giving bonds for the money, and that
this be used to bring up the schools to
four months.
Judge Graham explained the whole
situation, saying that it had been con-
sidered that this literary fund, which
came from the sale of the public lands,
could be used best in this way. 1t was
for such purposes as this that the fund
was really intended. AS high an au-
thority as Judge Conner believed two
years ago that this fund should be used
instead of the special appropriation for
the four months term
The money would be secured by bonds
70 the State. This was deemed as a debt
Of honor, and the money would be re-
turned, as any other similar debt.
The Members of the Committee on
Finance had been somewhat divided on
the subject, and the substitute offered,
together with a substitute bill drawn
by Governor Doughton for bond issue
of $500 00O constituted compromise
that had been reached after all the var-
Gus propositions had been discussed.
The bonds were short term bonds. run
years, as at first proposed.
Judge Graham briefly touched upon
the various plans suggested in the COM
mittee by members of the Finance Com
mittee and the Committee on Educa-
tion. One was the idea of Supt. Joyner,
that the literary fund be kept as per-
manent fund and loaned for the build
ing of school houses in the various coun-
Ia1
fully considered and finally the COM
promise had been reached. 1t had been
concluded that there was nothing sacred
about the literary fund; in fact that it
was really intended to be used for the
benefit of all the children of the State,
whenever it should have accumulated to
such an amount as should be of some
appreciable good.
The short term bonds had been con-
sidered more business like than the so
year bonds.
Governor Doughton then sent forward
his substitute bond bill, providing for
a 100000 bond issue for ten years at
per cent.
He then showed the exact financial
condition of the State The various
amounts owed were as follows: Note
in New York 100000; to the people of
North Carolina, $152500; to the public
schools, 800, 600 This made a total of
$452, 500. There was cash on hand in the
Treasury $50, 900. Accordingly there
was a deficit of 1922, 500.
The schol deficit would be paid in ac-
cordance with Judge Graham's substi-
tute resolution, to borrow 100000 on
bonds of the State at 8 per cent. from
the literary fund Then the general
bond issue would raise 100000. That
left $22,50O, which could be paid out of
back taxes under schedules b and C,
now being collected.
This, in brief, was the proposition be-
fore the House.
Mr.. Whitaker, of Guilford speaking
for the Committee on Education. set
forth why it was that the State could
not use any part of the literary fund TO
pay to the schools this debt that was
now owing Two years ago the Legisla-
ture had given 5000 900 to the public
schools, and now that there was a
deficit, it must be paid by the State as
a debt Of honor The literary fund be-
longed to the children of the State, and
IL would be manifestly unfair to take
that money to pay the deficit from
what was separate and distinct APP
preparation.
When it had been stated in the COM
mittee that the literary fund was not
a sacred fund, he had taken issue on
that point But he was willing that
the money should be loaned to the Stale
and secured by the bonds He favored
Supt. Joyner's plan to make this a per-
manent fund for the purpose of inn
proving the school buildings of the State.
That bin had passed the Senate, and
he would supportsit IN the House
Then the question was put on Judge
Graham's substitute resolution. The
vote was so to 2.
Those voting aye were Mesars Alex
ander of Mecklenburg, Beasley Blount,
Bowman Britt, Britton, Britain Bryan.
Bullard, Carlton, Cowan, Crocker, Cur
It's. Daniel of Vance. Daniel of Warren,
Daughtridge, Davidson, Dobson, Dough-
ton, Drewry, Foy, Freeman of Mecklen-
burg Cay, Goode. Graham, Guion. Hall,
Hamilton, Hamlin, Harrington of Har-
nett, Harrington of Moore, Hinton.
Hooker. Hughes, Humphrey, Hunter,
Continued on Sixth Page.)