The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1907-02-15
pRATTLEBoRo FRIDAY, FEB, 10, 1907
A QUESTION FOR CONSIDERATION.

interest for the use of its share OF the
United States deposit money, received
nv the state in 1887, or will turn the
money over to the state treasurer 10
becomeaa part of the permanent schooi
fund pursuant to law passed at the
last session of the Legislature. Brat
tleboro's share of the United States
deposit money, according to the last
apportionment, amounts to Sl2,92S'42,
as security for which the trustee oil
public money, William S. Newton, holds
four notes of the town. On this money
the town has paid the trustee interest
Mt six per cent. or $775.69 annually,
and the interest has been devoted TO
the support, of the town schools How
ever, according to act No. 81 of the
laws of 1906, which provides for per
manent school fund, the United States
deposit money in this state is appropri'
.ated for that purpose, Section . read
ing as follows:
The trustee of public money of each
town shall, on or before Dee. 81, I9Oh
collect and pay over the United States
deposit money heretofore apportioned
to it by the state treasurer for the
trustees of the permanent school fund,
except where such money is at the time
of the passage of this act loaned 10
the town to which it is apportioned, IN
which case the trustees of public money
may continue annually to loan said mon
ey to such town, with interest at five
per cent. per annum, until such time
as said trustees see fit to collect. the
same, when it shall be Immediately
turned over to the state treasurer for
the trustees of the permanent school
fund.
The Unitad, States Deposit Fund had
its origin in an act of congress entitled
An Act to Regulate the Deposits of
Public Money, passed June %, 1896.
The amount received by Vermont under
this act was 1868, OS6.74, all of which,
with the exception of $2,7Ol.S5 that was
not taken by eight towns and three
cores, was distributed to the towns for
school purposes according to population.
The amount held by each town has
varied from year to year as their popu-
.lation has shifted, an apportionment
being called for every 10 years Though
the Office of the state treasurer. Pre-
vious to the passage of the permanent
school fund statute. the law relating to
this deposit money provided that the
state treasurer should receive it and
apportion it to the several towns in
proportion TO their Inhabitants aeeord-
ing to the last congressional census.
The money was received by each town
through its trustees of public money
who .receipted for the money to the
state treasurer. These trustees were ALL
thorized to loan the funds to the town
provided the town authorized the select
men to borrow it, or if this was not
done the trustees were authorized to
loan it at per sent. on mortgage for
one year at a time. The law specifically
provided that towns should be account
able for the funds received on requisi-
ton from the state treasurer, if called
for by the United States or fer purposes
of a new .apportioRment. There were
also provisions which penalized a town
if it did not support schools hnless it
had other funds for this purpose.
BrattleborQ, like many other towns
in the state, has used up its share of
the deposit fund and pays on account
of the loan so made six per cent. an
nuadly to the trustee, this interest mon
ey going toward the support of the town
schools. The new law brings up the
question as to what action the town
would better take. If the deposit men
ey is kept the town will have to pay
interest to the state at the rate of five
per cent? and in addition RAISE more
money than formerly for the support
of the town schools. IF the money
is paid into the state treasury it will
have to be raised by a bond issue since,
as has been previously stated, the prin-
cipal has been used.
On account of the fact that Brattle-
boro can float bonds at lower rate of
interest than that required by the state
for the use of the deposit money, Town
Treasurer w. H. Bracket is of the opin-
ion that the town should take steps
toward paying the loan. At present
the town has $4,000 due each year from
1908 to 1918 inclusive. By making the
United States Deposit Money bonds
payable in amounts of $4,000 each year
from 1910 to 1915 inclusive and $1,000
in 1916 the town could take care of this
Indebtedness, which is approximately
$4,000, without inconvenience. On the
present basis of outstanding bonds this
method would leave the town debt
Jan. 2, 1918, $4,000 consisting of $751;
600 in Main Street Bridge bonds due in
$191S and $4,000 in Connecticut River
Bridge bonds due in 1923. Since there
is a Likelihood that future bonds may
be required for bridges and other i'm
provements the above mentioned plan
for taking care of the Deposit Money
loan seems especially advisable.