The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1903-09-12

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|, ST. Thomas Times: Besides seriously
crippling the educational and other institu-
lions of the state, the recent bond de-
c.s'on of the supreme court has another
serious side. There is at present in the
funds at the disposal of the Board OF
University and School Lands something
over $780, C0 Of un:nvested money. This
will be greatly increased during the TALL
if the board holds to its intention to sell
more school and Institution lands. Under
the constitution these funds cannot be
invested in anything but United States
government bonds bonds Of the state of
North Dakota, school district bonds and
North Dakota first mortgage farm loans.
There are not sufficient state or school
bonds offered to keep invested the funds
on hand. The methods and requirements
of the law relative to farm loans make
this kind of Investment undesirable on the
part of the borrower, and less than 100000
of the school funds have been invested this
way. Nothing is left then for the board to
do if it desires to secure any returns for
this enormous fund but to purchase gov
eminent two per cent bonds. This Will
realize but q small return to the school
and institutions, but 1t will be much bet
ter than nothing. 1t is likely that the
legislature two years hence will be asked
to amend the law relating to the loaning
Of school funds on farm mortgages.
Cooperstown Courier: Opposition to an
. a Al. &,,v &c, - win -
stronger all the time. 1t Is said that
the governor does not intend to call the
extra session until December. If this is
the case it will be a mighty dangerous
business for the finances Of the state. AS
the governor will have no power to m
the time of the extra session, the solons
could make an all winters job OF the ex-
ira session and might also pass q lot OF
fool legislation that is not needed. A
North Dakota legislature is a poor thing
to monkey with as well as very expensive.
In our opinion it will take considerable
more than $1,000 to pay for an extra ses-
sion. This paper is against any such deal
if there is any possible way to got ont
of it.. The tax payers have about a.! the
taxation the can stand now without
piling it on any thicker by extra SESSIONS.
The only way to cut down expenses on All
etra session is to call it now when every
body is busy then the members would
be glad to get through and go back to
their farms.
Pioneer Press: If the stae
is responsible for the bonds issued by the
institution boards, then the issuance OF
the bonds increases the debt of the state.
The amount of bonded Indebtedness is fixed
by statute. If the institution bonds ex-
coed this limit of Indebtedness it is clear
that they must be invalid. That is all
that came before the supreme court on
this point. The point that the Times
omits is one that did not come before the
court and had no right to come before the
court. The statute fixes the amount of in
debtedness arbitrarily at a certain sum,
and makes no allowance for assets what
ever. Business men figure at net indebt-
cdness. The state law figures on gross
.amounts. When figured as business men
figure, the balance between the assets
and liabilities of the state in the pro-
posed bond issue would neither be in
creased nor lessened. And for that mat
ter neither would the separate funds Of
IuC luSIllutlOllS. 4ueIc WOuiu my OS
a change in the form. Therefore, as we
said BEFORE. "as a matter of fact the
issue Of these bonds does not actually in
crease the Indebtedness of the state az
a whole, and in the case of these insti-
buttons and the general school funds there
would be only a change in the form of
the assets and liabilities-which would be
of mutual benefit, If it could be legally
so arranged.
and Pioneer: The question of extra
! session is still the topic of discussion.
Just what a special meeting of the legs
lature can accomplish is u mere matter
of speculation. The governor asserts
that there will be a surplus of 100000 which
can be used to aid those state institutions
which are sorely in need Of financial assis-
lance On the other hand the treasury
department fails to figure out any sur
plus or any sum approximating such an
amount. With this vast difference exist
ing it is scarcely possible that and good
results can be reached by converting the
legislature in extraordinary session. There
is one feasible way out of the dilemma,
; and that Is for the banks In the towns
where these institutions the located to
carry the bonds. The banks will refuse
to do this because of the legal status OF the
bonds. But If the state treasurer Will
deposit with each bank a sum OF money
equal to the amount of bonds held by the
bank and keep the same on deposit 80
long as the bank holds these bonds the
solution of the present problem Is easy.
Whether Mr.. Mcmillan is sufficiently In
terested in state institutions and willing
to carry out such a proposition is another
subject. But 1t is quite evident that
there must be something to divide before
a division can be made.
So far only 80 hunting permits