out in Chapter V and elsewhere this is a policy pursued by other states. For many reasons state bonds are one of the safest forms of investments, and when the school land moneys accumulate in the treasury the matter of investing such large sums becomes exceedingly difficult. Yet to use the moneys derived from the proceeds of the sales of school lands and to substitute for them certificates of indebtedness or even state bonds has resulted in transforming the permanent school fund of many a state into a burden rather than an aid. The purpose of these funds was clearly to lessen the taxation. The moneys are used up for internal improvements or other state purposes and then the people are taxed to pay the interest on the substituted or purchased securities. Such a Such a policy has frequently resulted in extravagance and reckless expenditure on the one hand and increasing burdens of taxation for coming generations on the other hand.* In conclusion it should be stated that Minnesota's management of her Permanent School Fund has been universally regarded as wise, efficient, and exemplary. Its method of caring for and selling its lands and of creating one state instead of many township funds were epoch-making policies in the history of public permanent school funds in the United States.† The sources at present provided for increasing the principal of the fund are the proceeds from (1) the sale (2) or rent of school lands, (3) the sale of grass or timber on such lands,314 (4) royalties on iron ore taken from school Present Sources of Increase lands, (5) profits on sales of bonds.308 The investment of the fund is in the hands of a "Board of Investment consisting of the governor, state auditor and state treasurer.” 315 Present V. The revenue is apportioned by the State Superintendent of Public * On this point compare the accounts of credit funds in Chapters I and For an account of the importance of Minnesota's policies consult Management, Chapter V. 314 Report Dept. of Public Instruction of Minn., 1878, p. 37; Laws of 1901 provide no other means. 315 Minn. School Laws, 1901, secs. 101-105. Instruction among the counties "in proportion to the number of scholars in each township five to twenty-one years of age,316 who have been enrolled in attendance Apportionment forty days.31 The objects for which the revenue of the Permanent School Fund may be expended are not specified by law, but it cannot be used for sectarian schools 318 and in the expenditure of Objects it, teachers' wages have the preference.319 The conditions which must be fulfilled in order to share in the revenue of the Permanent School Fund are four in number, and Present may be summarized as follows: (1) maintenance of a school at least five months; 320 (2) the school must be taught by a legally qualified teacher; 320 (3) submission of returns required by law; 320 (4) provision of regular and systematic instruction in physiology and hygiene.321 316 Constitution of Minn., Art. VIII, Sec. 2. 317 Minn. School Laws, 1901, Sec. 164. 318 Constitution of Minn., Art. VIII, Sec. 3. 319 Minn. School Laws, 1901, Sec. 72. 320 Ibid., Sec. 164. 321 Ibid., Sec. 367. CHAPTER XXXII MISSOURI PUBLIC SCHOOL FUND, TOWNSHIP FUND, COUNTY PUBLIC SCHOOL FUND, SPECIAL DISTRICT FUND Title. Condition, 1902 Missouri has four permanent common school funds or classes of funds known respectively as the Public School Fund; 322 County Public School Fund; 323 Township School Fund; 324 and Special District Fund.325 The principal of these funds is as follows: 326 Public School Fund, $3,159,123; County Public School Fund, $6,002,426; 326 Township School Fund, $2,301,622; Special District Fund, $92,385. The total principal of the permanent common school funds amounts, therefore, to $11,566,556; the annual income reported to be derived from the same in 1902 is $638,833,116 approximately seven and nine-tenths per cent of $8,113,509,116 the total public school revenue that year. It would be difficult to state in what year the first permanent Origin Special District Fund was established. These funds are local funds which have been created at different times by gifts, devises, bequests, special grants or legislation. In 1812, while Missouri was yet a territory, "Congress ordered that all lands not of private ownership be reserved for school purposes in a dozen of the larger villages. Missouri became a state in 1821.❞ 327 In 1839 an act was passed for the establishment of a system of common schools. One provision of this act declared 322 Revised School Laws of Mo., 1903, p. 56, Sec. 9819. 323 Ibid., p. 58, Sec. 9824. 324 Ibid., p. 59, Sec. 9828. 325 Report Mo. Supt. of Public Schools, 1884, p. 15. 326 Ibid., 1902, p. 28. 327 A. D. Mayo, The American Common School in the Southern States, 17901840; Report U. S. Commissioner of Education, 1895-96, I, p. 330. that all towns and neighborhoods to which the United States Government had granted special donations of school lands in 1812 might be incorporated for school purposes.328 329 Upon admission into the Union, section numbered sixteen was granted and reserved in each township of the state for the support of schools, the aggregate area being 1,208,120 acres.3 Township Funds In 1834-35 the legislature provided for the survey of these school lands and for the regulation of the sale of the same.327 In 1839 supplementary provisions were made respecting the sale.329 The Revised Statutes of 1845 contain no provision requiring that the proceeds be invested permanently. This provision appears, however, in the Revised Statutes of 1866, Chapter 46, section 66. The Public School Fund was established by legislative act February 6, 1837.330 The original capital consisted of the proceeds of seventy-two sections (46,080 acres) of saline lands and $382,355, Missouri's share of the surplus revenue distributed by United States in 1837.331,* Origin Public On February 9, 1839, it was provided that the proceeds of fines, forfeitures, etc., collected within the county, should be paid into County the county treasury for the County School Fund,329 School Fund but it would appear that no provision was made for constituting the proceeds of these sources of revenue a permanent fund until 1868. The County School Fund was established as a permanent fund by section 18 of an act approved March 27, 1868. The original principal consisted of the proceeds of fines, penalties, and forfeitures,332 and the proceeds of 3,185,479 acres of swamp land granted by Congress under an Act of 1850. It would be impossible in the case of Missouri, as with many other states, to ascertain definitely the amount of the permanent school fund which has been lost. The report of the Superintendent of Public Schools for 1870, Loss * See Part I, Chapter III, for an account of the Surplus Revenue Fund. 328 Ibid., Report U. S. Commissioner of Education, 1900-01, I, p. 376. 329 Report Mo. Supt. of Public Schools, 1903, p. 94. 330 Ibid., 1869, p. 38. 331 Bourne, Edward G., History of the Surplus Revenue of 1837. 332 Mo. Law, Feb. 9, 1839. Chapters XII and XIII, attempts to give an account of the amount of the Township School Fund which has been lost. The report shows that at that time over a hundred thousand dollars of this one fund alone was reported lost, but as in the case of many townships the amount lost could not be ascertained, the total loss exceeded that reported. Among the various reasons given are: burning of the court-house, parties running away; parties insolvent; default of county treasurer; notes outlawed; stolen; carelessness; the war; insufficient security; parties absconding; robbery; records imperfectly kept; townships having no fund being too disloyal to organize; records burned; carelessness of officers; worthless notes. R. D. Shannon, State Superintendent of Public Schools in 1876, points out that the county funds were sometimes invested in direct and flagrant violation of the law, and that the moneys due the principal were not always added. He writes as follows: "The township, swamp land and county school funds are under the control of the various county courts and, as a rule, have been badly managed. They have to a shameful extent been lost, squandered and stolen. This was more particularly true in the war period of our history. . . . There is still, however, in some cases, a looseness of management that amounts to culpable neglect. In some cases county courts have invested their township and county school funds in school bonds and otherwise in direct and flagrant violation of the law. . . . Fines, forfeitures, and penalties have not always been faithfully accounted for nor applied to the funds to which the law directs their application." 332a Sources of The State Public School Fund may be increased by grant, gift, devise, appropriation by the General Assembly, proceeds of estates escheating to the state. The County Public School Fund may be increased by the net proceeds of fines collected for breaches of military or penal laws of the state; penalties, forfeitures, estrays; sale of swamp lands; military exemption moneys. The Township School Fund may be increased by 332a Report, Mo. Supt. Public Schools, 1876, pp. 13–14. 333 Report Mo. Supt. of Public Schools, 1900, p. 43; Revised School Laws of Mo., Sec. 9824, p. 58. |