The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-03-04
That Will Pay the Deficit in
State Treasury.
BORROW FoR SCHOOLS
This Will be Obtained From the Per-
manent School Fund.
THE DETAILS TO BE WORKED OUT
The House Committee viii Recommend Short
Term Bond Issue to Pay the Amount
Due One on Last Years Ap-
prjpriatiOns,

PREPARATIONS,
The House Finance Committee yester-
day afternoon, after two days discus
sion. upon motion of Mr.. Kicks, of Nash,
appointed a committee of five to draft
bill to provide for the $500 900
deficit in the State Treasury and
to pay the 100000 now due for
public schools said 100000 having
been appropriated by the General AS
sembly of 1901. The committee, which
Mr.. Kicks named in his motion, was COM
posed of Governor Doughton, General
Davidson, Judge Graham. Mr.. Blount, of
Washington, and Mr. Smith, of Gates.
That committee met at once and after
long consideration decided to offer bill
embodying these two provisions:
/. To authorize the State Treasurer to
issue S300,000 in three per cent ten-year
State bonds, to pay the deficit due to APP
preparations made in 1901 for which there
are 10 funds in the Treasury
2. To borrow 100000 from the Perm
anent School Fund, payable January LIST,
1906, said loan to be paid with bond of
the State of North Carolina, bearing
three per cent interest.
Preceding this decision there was long
discussion yesterday as on the previous
day. The real difference of opinion de-
veloped as to whether the 100000 accu-
mulated by the sale of swamp lands was
a permanent fund for public schools, or
was like other funds in the public treas
ury to be disbursed like other money
Mr.. Smith, of Gates. contended that it
was no scored or permanent fund, ana
should be appropriated for the public
school
Mr. Smith proposed to take the 1000
in sash from the Permanent School
Fun and sell bonds for the other $780,
600 to pay the money due the schools.
Mr. Blount said that. no matter which
born of the dilemma we took, we would
be borrowing 100000 we might take
100000 from the school fund, but it
would be borrowing the money neverthe-
less. 1t was impossible to get away from
the proposition that we had TO Dor
row 100000.
But that permanent school fund ought
not to be touched. If we did not touch
that. but went openly and borrowed the
whole amount outside, we would have
a slogan that we could use. We could
say that we had left intact that fund be-
longing to the public schools of North
Carolina.
Mr. Smith declared that the pub
lie schools were indebted to the
State in the sum of 100000 in the last
six years Accordingly if there was any
money in the school fund, it belonged to
the state to use for the schools. The
constitution said this money was to be
used for the schools in per capita dis
tribution, together with the money raised
by other means,
Mr. Smith stated that he was perfectly
ready to vote for a short term bond
issue of $500 600 There was every prece-
dent for the use of the literary fund for
the public schools.
1t was not practicable Mr.. Smith
claimed to use this money for the build
ing of school houses. He did not be-
leve in borrowing from one pocket to
put into another
We had lost the literary fund once
in 1868 and 80, during reconstruction
days, when the Legislature squandered
IL on per diem and mileage, but is not
risk losing it again.
Judge Graham said that to him this
was simply a business proposition.
There was nothing in the laws of the
state to prevent our using the so-called
permanent fund in the way proposed
He believed it was feasible and prae
ticable to borrow money from the perm
anent fund and pay interest on it to
nav the debt due to the schools 1t could
be paid back.
Mr. Whitaker. of Guilford. said he did
not see that we had any right to use
the literary permanent school fund to pay
the deficit, without paying it back. There
was no provision in any act that had been
PASSED for this fund to be used to pay
deficit. It was to be used for distri-
hutton per capita Our deficit had arisen
from various causes, and we would not
be justified in using that fund TO pay 1t.
lie favored superintendent Joyner's bill
to loan this fund for the school houses.
He would be willing for the State to
issue bonds to cover what they took from
the fund. But he was unwilling that the
state should take any part of the fund
without putting something back to take
it's place.
Superintendent Joyner showed that the
State had no right to use the principal
OF the literary fund for distribution. Only
the interest could be so used. He claimed
that it would not be keeping our pledge
with the children to take that fund that
had been laid UP for use. 1t would be
fooling the people, and he was unalter-
ably opposed to it. If it was done, he
would wash his hands of the whole trans
action and leave the responsibility where
it belonged.
He considered that the Legislature
would make the greatest mistake of the
Esaauuzu.-uuu-