The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1907-12-08
MILLIONS WORRY OklAX INA.
,.s" STATE WONDERS WHAT TO
90 WITH ITS SCHOOL FUND.
Certain Conditions Must Be Met and
There May be Controversy Among
lesislstors-one Mans Plan
TO Avoid Trouble,

Guthrie, Ok. Dec The safe in.
vestment OF the permanent school
fund OF . million dollars given by
Congress to the state OF Oklahoma
In manner to afford the greatest
relief & commercial interests. hard
pressed by financial conditions. is
one of the matters that will come
before the state administration. The
fund will be transmitted from Wash.
ington to Oklahoma when IN, lcgis.
lature enacts required laws
The state constitution provides
that the fund shall be- invested in
first mortgages upon good and i'm.
proved farm lands within the state
land in no cose shall more than 80
per cent OF the reasonable valuation
Of the lands without improvements
be lent on any tract. Oklahoma
state bonds. Oklahoma county bonds
school district bonds and United
States bonds. Preference is given
to the securities in the order named
There are conditions in the state
that may provoke controversy In
leding this fund unless the legislature
takes cognizance of them. +. l..
Cralle of Norman member of the
territorial council in 1905, who has
given the subject careful study. said
to-day:
Under the provisions of the con.
stitution it would be practically i'm.
possible to lend this money to banks
in the Indian territory part of the
state. There are as many banks
there as there are in old Oklaho.
ma, and the discrimination not only
would be unfair, but would cause
needless controversy. Land titles in
Indian territory are such that It
would be unwise to risk loans on
much Of this land at present The
allotments of the Indians have been
bought by land companies in more
or less attempted evasion of the law
and there are thousands of acres of
farm lands in the Indian territory
part of which the title Is in ques-
ton.
The next security in the order OF
preference is state bonds There
are no state bonds for immediate
purchase In the Indian territory
part of the state there will be no
county or school district bonds that
may be purchased in time to be
used as securities for these loans.
United States bonds cannot be cas-
lily obtained. On the Oklahoma side
OF the state the class of securities
named is more available. and TO
that extent give an advantage TO
West side banks over East side
banks.
II believe there is way out of
the difficulty that would be fair and
safe to everybody My plan Is that
SuCn banks III tne East sue Oh lHe
state as are without the class Of
securities required under the con
stitution, and are unable TO get
them should he permitted to give
temporarily guaranty bond in
some approved guaranty company
for the safety OF such parts of the
fund as may be awarded to them,
but upon the express condition that
within twelve months these banks
shall displace these guaranty bonds
with gilt-edged farm mortgages or
state. county, school district bonds,
or United States bonds. In the in.
tervening twelve months, the III
dian territory counties will have Is.
sued warrants and retired them in
bond issues, making these bonds
available as securities.