Evening star., 1944-10-01
|Darden Offers
New Uses for
Literary Fund
Student Looms for
Deserving High School
Graduates Urged
By the Associated Press.

, AsANAANANAND, va, OcpL. 0U.-A
student loan fund for deserving high
school graduates and better retire.
ment system for the present group
OF older teachers were advocated to-
day by Gov. Darden as further uses
OF Literary Fund monies.
The Governor, expressing the be-
lief that the proposed constitutional
amendment freezing" the Literary
Fund at $10,000,000 was sound, said
he hoped the General Assembly
would use some of the funds
receipts to create student loan
fund for use in attending non-State
as well as State institutions.
Gov. Darden said creation of such
fund appears to be a judicious use
OF the money available"
Personally, I am not inclined to
limit the loans to those wishing to
attend State institutions" he added.
There are many excellent nom
State schools in Virginia. They
should be encouraged. If a stu
dent wishes to enter one of these
and can qualify, by character and
ability, for loan, I should favor
the assistance" -.
Would Aid Education.
Concerning the proposed amend
ment itself, which has met with
some opposition, the Governor said
he believed its adoption would be
in the interest OF public education.
He said he doubted that more than
$40 100000 would be needed in
loans from the fund for building
purposes, but if so, IT do not be-
lieve that we need have any fear
about meeting our capital needs, in
so far as being able to borrow is
concerned"
A better retirement system for the
older teachers is desirable, Gov.
Darden said, because the present
system is not sufficient for those
who have spent many years in the
States service
They do not begin to fare 50
well as those now entering" he
explained. These older teachers
deserve a better system than we
have been able6to provide. To ac-
complish this, sizable sum will
have to be added to the present
retirement reserve.
Not Permanent Change.
This will not be a continuing
charge. The entire deficiency can
be met over reasonable period Of
years, but 1T must be met if the
older teachers are to have a salts
factory retirement plan. A part Of
the Literary Fund accruals can be
used with profit for this purpose.
Furthermore" the Governor
added. such step will strengthen
the school system"
Gov. Darden said there has been
considerable misunderstanding" as
TO the purpose of the Literary Fund
amendment which has received the
overwhelming approval of two as
semblies" and which is to be voted
on In the election November 7.
1t has been suggested that the
adoption of the Amendment would
permit the use of the literary fund
monies for the general expenses of
the State" the Governor said. $50
far as I know, no proponent of the
amendment ever contemplated using
the funds for other than edu-
cational purposes. 1t is for the pur-
pose of using them to better ad-
vantage that the amendment is
sought.
Attorney Generals Opinion.
However, in order to reassure
some who were interested, 1 re-
quested an opinion of the Attorney
General as to the effect of the pro-
posed step.
The Attorney Generals opinion
shows that the amendment does not
permit accruaS to the fund to be
used for general expenses. He holds
that the monies paid into the fund
cannot be used for the operating
expenses of the schools.
The proposed amendment per-
mits the General Assembly to set
aside the accruals to the fund for
specific school purposes and it also
permits sums to be transferred to
a retirement fund for the teachers,
so long as the prinipal of the Lit
erary Fund does not fall below sl0,-
000, ,000."
The Governor said that opposi-
ton to the amendment appears
to arise out of the fear that loans
for new school buildings will not
be available, if the amendment is
adopted. This contention is Ger
tainly worthy of the most careful
consideration. Were this to be the
amendments effect, I should op-
pose it. However, such is not the
case"