The Wealth Makers and Lincoln Independent Consolidated,
VOL. V1IL
LINCOLN, NEBR., THURSDAY, June 25, 1896.
NO. 3.
('
A
Populists at St. Louis Help Inaugur
ate the Teller Boom.
ALL PATRIOTS URGED TO UNITE
Bring Together the Scattered Forces
and Make One Victorious Charge.
United Resistance to Wholesale Kobbery
and Grinding Oppression.
"Expressly . disclaiming any purpose
or right to bind any party or person by
the .views here set forth, we but yield
to an overpowering sense of duty In
saying what we do to members of the
people' Party and t0 &U other good cit
izens, who, apprehending the approaoh
of a momentous crisis In our country's
life, are willing to avert it by acts of
exalTed patriotism. "We came to St.
Louis as citizen members of the peo
ple's party to be present at the meeting
of the national republican convention
that we might determine more definitely
for ourselves the true aim of that organ
ization In the present struggle.
"Here we have seen the 'boss' in poll
tics more securely enthroned, more
servilely obeyed and more dictatorial
as to candidates and policy than has
ever before been witnessed In the field
of national politics. One man, the per
fection of his type, representing the
millionaires, the banks, the corpora
tions, the trusts and every other re
morseless and plutocratic element In
our country's .life, has, through the
power of money, dictated the nomina
tion of Mr. McKlnley and shaped the
platform of his party. We have wit
nessed a convention, magnificent In
numbers, pretending to represent free
American constituencies, moving for
three days as if a hand of terror was
above them, whose might they,- dare
not tempt, and whose imperious point
ings It was Impossible to disobey.
. . ISSUE MUST BE MET. ,
"This convention, slavishly respondi
ng to the will of the money power,
has forced an issue which must be
met. It is a challenge to the yeomen
of the land. If it Is declined, or, If It
shall succeed, the fetters of a tyr
anny, more grinding than that of czars
or . emperors, will be rlve'n upon the
plain people of the - country, fetters
which must be indefinitely iworn with
the contemptible spirit inseparable
from willing serfs, or, in the end, be
broken with the irresistible power of a
mighty revolution.
"That issue Is formulated in the 0e
inand that the existing gold standard
must be preserved, and for the en
actment of all measures designed to
maintain inviolably the obligations of
The United States, and all our money
either coin or "paper at the present
standard. This means that silver
shall be .rmanently degraded into
mere money of change and that it be
'deprived of its legal tender quality,
except for some paltry sum; that the
greenback ana all other forms of gov
ernment paper money shall be re
deemed and destroyed; that the na
tional banks shall be swollen Into a
power of triple their present ability
to contract the volume of money, to
absorb the earnings of ' dustry, and
to grip the throat of all Industrial and
commercial life, while from time to
time it terrorizes the voters into choice
of its tools for all legislative, Judicial
andi administrative positions.
tit will require that all of our pres-
sion by the republican convention to
the most extreme demands ever made
upon Americans by the money power,
every thought and effort of American
manhood should, from this hour, tend
towards creating and cementing a un
ion between those who would resist
'the- conspiracy of wholesale robbery
and grinding oppression. A coinci
dence of fear, of hope, of conviction,
already exists among Intelligent and
observant people. Political division
alone creates an obstacle to unity of
purpose and harmony of action be
tween them. The duty of every patriot
la to remove this obstacle, so far as it
can be, by honorable concessions and
reasonable sacrifices. These do not
contemplate even the thought of merg
ing our party into any other, or the
slightest impairment of its efficiency,
but alone for the sake of humanity,
and to avert, if possible, the disas
ters which the supremacy of the money
power now so menacingly forebodes,
to secure the union of good citizens
who "hlnk alike upon the important
issues of financial reform, In behalf
of the election of a president, who, In
spirit, is antagonistic to none of the
fundamental principles of our party,
has openly engaed in the most
sturdy advocacy of our chiefest meas
ures. .
"Measures must be gained or de
feated . through men. After all the
ohlef problem In this crisis
THE
GOVERNOR
A Protest Against Stealing Interest
On the Children's Money.
WORK OF SNEAKING BOODLERS-
TheyHold $600,000, the Children's
Funds and Pocket the Interest.
says:
NOT STATE SECURITIES.
P ' J,Jt national bonded debt be refunded
f "'and new bonds be issued, running for
J I half a century and made expressly
JJ payable in the present standard of
rf money gold. All other forms of debt-
private, corporate, state and municipal,
will ultimately be. made payable In the
game yellow money, or its equivalent.
"With these measures enacted, the
gold plutocracy triumphant, the condi
tion of the people will be no better
than was that of the recently manu
muted -black slaves. Their right will
be to go to the end of tne chain that
fotn'ds them a freedom or irremovable
debt, of grinding poverty, of a black
ana cneeriess future.
"The money power has forced this
issue now because, ip its judgment,
thosn whom its policy would enslave
are divided into hostile political fami
lies which cannot be united in time to
resist its onset. It regards It as im
possible that harmonious action can
be secured between the different or
ganizations that favor monetary re
form and resistance to their insatiate
greed. With populists, silver demo
crats and iiridppendent bimetallists,
supporting different nominees for
V feels assured of victory, and it has de-
termined to press now and without
f abatement thn advantage which this
apparently lamentable condition raised
up before it.
'V A SUGGESTION TO MAKE.
I "In this, the most threatening nrteia
that has menaced the country since
V, the civil war, though simply citizen 1
V members of the people's party, we I
venture to make momentous sugges-
Vns to you, our brethren. In doing
lis we have neither desire nor
lought to Impair In the least degree
f , Ye efficiency of our noble organiza-
Ipn, charged as it is with the liberties
Pent and future generations, and
vnose integrity and growth is essen
tial to the perpetuation of our free
institutions. Our constant aim will be
to defend it from foes within and
without and to presrve it as a power
consecrated forever to the defense of
humanity's dearest rights upon the
American continent. -"In
view of the shameless submis-
SENATOR TELLER.
man upon whom patriots can unite,
wnose nie is a witness that if en
trusted with authority over national
legislation and Its enforcement he will
defy every allurement of wealth and
every menace of power, standing un
fllnchlngly by the cause of the people
in the fierce struggle Inseparably con
nected with the enactment of our pro
posed! financial reforms.
TELLER THEIR CHOICE.
We see in the private and official
life of Henry M. Teller a beacon,
burning brightly, warning the people
off the threatening shores of dissen
sion. He has but now publicly aban
doned the republican party, with
which he has been associated! from ita
first organization, entering it when led
Dy conscience to strive for the over.
throw of human bondageand leaving it
wnen jmcoin s teacmngs and human
uy were swallowed up In the greed
and cruelty of money kings. For
twenty years he has been a command
ing figure in the nation's life, a cab
inet officer and senator of the United
states. Nominally he, as a republi
can, has many times defied his party
when its members sought to make it
an instrument of injustice and oppres
sion. " For twenty years he has stood! as
a bulwark against the tyrannical en
croachments of the national banks. H
has never hesitated to declare that they
should' be deprived of all -authority to
issue money and to control its volume;
he is an unflinching' advocate of the
duty of the government to maintain and
exercise exclusively for the people the
sovereign power of emitting all money
gold, silver and paper. He holds that
to issue bonds in time of peace is a
stupendous wrong to the people and the
country.
"When to thisofflcial record are unit
ed an unsullied private life, a character
without blot or stain, a grateful and
generous nature, a patriotism that
knows neither state nor section, we feel
we are but performing a duty to our
beloved country in thus calling atten
tion to Mr. Teller's merits and availa
bility as a candidate for president as one
upon whom all populists may consis
tently unite while they strenuously pre
serve and strengthen their organiza
tion.
'The necessity and wisdom of a dis
passionate consideration of his claims
upon the support of the American
people have become the more apparent
since the patriotic republican leaders
who abandoned their party under his
Inspiration have announced him as
their nominee for president of the Uni
ted States.
"We beg our fellow populists to
calmly consider the suggestions we
have made. It is our fervent hope that
the patriotism of our motives will, in
their judgment, Justify the course we
have taken. Let us all so act that, If
In the wisdom of an Inscrutable provi
dence, the union, which we may ten
der and of which our suffering country
stands in such trying need may not be
affected, we can at least declare In the
presence of God and our country that
we -did our duty as patriots and the
fault or failure does not lie at our
doors."
This is signed by II. E. Taubeneck,
Illinois; J. H. Davis, Texas; M. C.
Rankin, Indiana; T. M. Patterson,
Colorado; J. Hugh McDowell, Tennes
see; John P. Steele, Illinois; Thomas
Fletcher, Arkansas; Howard S. Tay
lor, Illinois; Homer Prince, Arkansas;
J. W. Dollison, Arkansas; M. R. Coff
man, Arkansas; J. A. Edgerton, Ne
braska; R. A. Sankey, Kansas; Charles
E. Palmer, Illinois; F. D. Eager Ne
braska; J. D. Hess, Illinois; A. L. Max
well, Illinois; George M. Jackson, Ar
kansas; S. J. Wright, Texas; S P V
Arnold Illinois; Eugene Smith, Illi
nois; W. J. Quick, Missouri; Calvin K.
Reifsnider, Missouri; Frank E. Richey
Missouri; W. J. Flatt, Tennessee: Ho I
race O. Clark. Colorado. 1 . 1
The Most Disreputable Gang that Ever In
fested the State.
Executive Chamber, Lincoln, Neb,
June 20, 1896, There have appeared re
cently in both the newsand editorial col
umns of the State Journal several arti
cles concerning the question of the in
vestment of the permanent school funds
of the state which are so misleading and
devoid of truth, and which bo willfully
misrepresent my action in relation there
to that it seems to me a brief statement
of the facts should be made. To tbe peo
ple of Nebraska this is a very important
subject, and they deserve to be fully and
truthfully informed as to just what has
been accomplished in the way of invest
ing the idle surplus permanent school
fund by the board of educational lands
and funds, as is required by the consti
tution and statutes of the state.
These several published articles have
also been followed by a communication
signed by Hon. H. C. Russell, one of the
members of the board of educational
lands and funds, which is largely a repe
tition 01. and seems to be based upon
the statements contained in the articles
to which 1 have referred. The false im
pressions sought to be conveyed by thtse
several articles may be briefly sunstnar
ized as follows: First, that a very large
part of the permanent school fund has
already been invested by the present
board, second, that I, as a member of
the board, have been endeavoring -to
purchase securities bypaying premiums
in an illegal manner, and, third, that by
my action the rate of interest has been
lowered and the board prevented from
securing bonds at an advantageous rate
ef interest as they otherwise would have
secured.
treasurer's report.
I desire to state in the beginning that
according to the last official report of
the state treasurer, May al, 1896, there
was 1675,036.59 in the state treasury
belonging to the permanent school, uni
versity and agricultural college endow
ment funds, every dollar of which, under
the law should be invested in interest
bearing securities. Of this immense sum
over f oUo.UOO belongs to the perma
nent school fund, and yet we are told
with supreme self-assurance that "this
fund is nearly all exhausted." Let us
see what has really and actually been
accomplished.
I he records for 1895, show but one
transaction by the board of educational
lands and funds looking toward the in
vestment of any part of this fund. This
was the purchase of Otoe county bonds
in the sum of $40,000, bearing i per
cent, interest, which was afterward ac
cepted by the county authorities, was
made by the board om July 22, 1895,
and the bonds issued November 12,1895'
and registered in November 22 follow
ing, they were not in fact paid for until
January 15, 1896, so that as a matter
of fact, during the year of 1895, nothing J
was accompusnea in tne way ot actually
investing any part of this fund. It is
true mas during mat year tnere was
paid on account of bonds purchased the
sum ol $ 75.0UO from December 5, 1884,
to June la, 1895, but these payments
were made on account of bonds our-
chased by tbe board as it existed under
the administration of my Dredecessor.
Governor Crounse, and were no part of
the purchases made by the board of edu
cational lands and funds as at present
constituted, these amounts were paid
for balances due on purchases of Hamil
ton county and Dawson county bonds
made by the preceding board.
On March 5. 1896. there were nnr.
chased small issues of bonds of Richard
son county and Harland county, aggre
gating only $5,360.61. .
On January 1, 1896, the permanent
school fund alone had to its credit more
than $600,000. At the first meeting of
the board 01 educational lands and funds
held January 15, 1 introduced a resolu
tion providing for the purchase of state
warrants already issued and those here
after to be issued, which would have
opened up a way for the investment of
the entire fund at the very desirable rate
of five per cent interest per annum. This
resolution was in line with the decision
of the supreme court and the action of
the prior boards regarding this same
fund. Jwer since the adoption of the
constitution state warrants have been
deemed state securities and at different
times have been purchased as an invest
ment for this fund, thus establishing a
precedent which has been adhered to
oonstantly until overturned by theopin
ion of the attorney general after the in
troduction of the resolution referred to.
Had there been a sincere desire to invest
this fund here was a ready and proper
way and at a rate of interest at which
no person couldcomplain. This method
of investing school funds had not only
been established and approved by several
acts of preceding boards of educational
lands and funds, of which the attornev
general of the state was always a raem-
Der, but it also had received the sanction
of the supreme court by a decision rend
ered in the 25th Nebraska bv Judire
Reese. This decision referred directlv to
the question as to whether state war
rants are state securities within the
meaning of the constitution and holds in
the affirmative. To this was added the
weight of the opinion of the court as it
is now constituted, rendered in the 41st
Nebraska, in the case of state against
Bartley, cm page 284, where the court
"We muss not, however, be understood
as holding that warrants against the
general fund are not state securities
within the meauing of the constitution.
Although that question is not presented
by this record, in re state warrants, 25
Neb., and State vs. Bartley, supra, we
assume them to be legitimate invest
ments for the permanent school fuud;
but, if the state, as trustees for said
fund, desire to invest in that class of
securities, it is required to do so on
terms of equality with other investors."
Notwithstanding these unambiguous
decisions ot the supreme court in three
Separate and distinct cases, all referring
to the same subject matter, the opinion
of the attorney general to the effect that
state warrants are not state securities
seemed to have been suflicient to out
weigh in the miuds of a majority of the
board the constitution, the statute and
the decisions of the court referred to
Refusing to follow tbe long established
precedent and the decisions of the court,
the board voted down the resolution
which I had introduced and which would
have provided an ample and adequate
means at a good rato of interest for the
investment of this entire sum. Not con
tent to allow tho matter to rest upon
the opinion of the attorney general and
the action of a majority of the -board
thereon, and in view of the important
public interest involved, I took occasion
to request an opinion from three of the
ex-judges of the supreme court, giving
to them a copy of the resolutions intro
duced by me and the opinion of the at
torney general.
"Ex-Judge Maxwell says: y"l have re
read this (the attorney general's) opinion
very carefully and the reasons heassigns
fail to show that state warrants are not
state securities. Although the
opinion of Judge Reese was not rendered
in an action actually pending, yet it was
given to the legislature in pursuance of
a request for. the view of the court as to
the propriety of passing a law for the in
vestment of the perraanentschoolfundin
state warrants. The questiou was very
carefully considered by the entire court
and the opinion prepared by him con
curred in by all of the' members. Judge
Keese is one of the ablest lawyers in the
state, and was a member of the constitu
tional convention of 1875 and knew the
object of the provision was to make safe
investments for the school fund. "
I see a correspondent in the (Fremont)
Leader calls attention 'to the fact : that
the members of the constitutional, con
vention of 1871, which was in session
about four months, were paid in state
warrants, which tbe state board invest
ed the permanent school fund in. That
is a fact. I was a member of that con
vention and also tbe constitutional con
vention of 1875, Chief Justice Mason of
Nebraska City and, Justice Lake of
Omaha, both then judges of the supreme
court, were also-members of the conven
tion of 1871, and their warrants as well
as my own were paid out pf that fund
and no one questioned it."
Judge Keese says: "1 have re-read the
decisions of the supreme court as found
in 25th Neb., 659: 49th Neb., 353: 40th
Neb., 298, and 41st Neb., and am wholly
unable to see that the decision in 25th
Neb., is wrong, or that it has been over
ruled by the later decision of that court."
sound 121 LAW.
Governor Crounse, who is also an ex
judge of the supreme court says;
nave neitner tne time nor nave l access
here to the authorities cited to enable
me to enter upon tbe discussion you in
vice, xour resolutions, nowever. are
substantially those adopted on my mo
tion by the board when 1 was a member
of it. You know their fate. Yours,
think, will fare no better. The resolu
lions in my judgment are as sound in
law, as wise in purpose, but the wisdom
and ingenuity of our modern Daniels
seems to run in the direction of shielding
the plunderers of the treasury rather
than to protecting the treasury itself,
I submit that, in view of authorities
so numerous and carrying such weight,
this well adapted plan for the invest
ment of this entire fund should not have
been rejected; nor can it in truth be said
tnat 1 nave not made every enort pos-
81 Die to secure the investment of all
these funds at a greater rate of interest
than can be obtained in any other way,
After the refusal of tbe board to co
operate with me in the purchase of state
warrants my attention was turned to
the purchase of United States bonds
which, while it would not bring as large
a revenue lor the benefit 01 the tempo-
rary school fund, it would bring a great
deal more to ttie state than could bo ob
tained by permitting this fund to remaim
idle. Besides, in so doing, the board
would be complying with the law and
discharging its full duty. Therefore I
offeed a resolution looking, to the in
vestment of all idle funds in United
States bonds, the legality of which could
in no wise be questioned, and at a rate
of interest that would yield at least 3
per cent per annum, providing especially
in the resolution that if at any time be
fore the fuuds were invested county or
state bonds could be purchased yielding
a higher rate of interest, that this be
done in lieu of the purchase of United
states bonds. This resolution met the
same fate. Thus by the action of a ma
jority 01 the board we are restricted to
the purchase of state or registered
county bonds, the only other securities
mentioned in the constitution.
Now I desire to briefly allude to what
has been accomplished in that respect.
The $40,000 4 per cent Otoe countv
and $5,000 of Richardson and Harlan
county bonds heretofore mentioned
having been purchased, the next issue
offered to the board was $30,000 of
Greeley county bonds drawing 4 per
cent interest. Upon the submission of
the proposition to sell these bonds to
the state at par, the minutes of the
meetings of the board of educational
ands and funds show that Commissioner
Russell moved that the bonds be ac
cepted at 5 per cent interest per annum,
winch was seconded by Mr. Piper, after
which 1 offered a written resolution to
INDEPENDENT INDEX.
Pane 1
Proposing Leader.
The Governor Speaks,
rage J t
English Interest.
Kill Oft tbe Old Guard.
No Willing Worker Idle.
Morton'a Ninety-eight Million Lie,
Cuming County Convention,
Work that Counts,
Do Both. i
The Despot Ueed. '
The Result ot Despotlsm-
Now Stand by It.
Why Kem wan Mad.
Pages
Senator Teller'! Reasons.
Republican Bolters' Manifesto.
Gold Demqcrata Making Ready iO Fight.
Page 4
.Editorial.
Page 5
Omaha Platform, ,
Free Silver Frauds.
Nebraska Politics. . .
Turned Traitor.
..Hit It
Page ft- .-... ' 'J.
Nebraska Crop Report.
Hardy 's Confession of Faith.
Father Snyder's Letter, .
Lodge Pole Notes, . . '
Page 7- ' .--.-
The Old Twin Liars.
Populfsl Record,.
Ogalalla Items.
Tariff AgnltistL's.
Miscellaneous, ' .
Page 8 , .. .
Hastings Items. '
Miscellaneous.
purchase the bonds at par value as of
rered. The motion to accept these bonds
at 5 per cent could have no other "effect
than the rejection of the offer, because
not only does the law Drovide that
bonds issued as these were should not be
sold at less than par, but these bonds
were voted with tbe provision that thev
should not be sold at loss than tar.
This board, therefore, had but one of
two alternatives either to accept them
at par or to reject them. The resolution
tnus introduced by me was accepted m
place of the original motion and the
bonds were thus purchased. The board
has also purchased $25,000 of Boone
county bonds drawing interest at 5 per
cent upon a basis netting the state
about i per cent . interest, per annum
being paid by detaching coupons first
maturing to the amount of the premium
agreed upon.
'1 his is the extent of the investments
of every discription completed by the
present board out of the permanent
school fund.
OTOE COUNTY REFUNDING BONDS.
In my absence from the city, March 10,
a meeting was held to consider a propo
sition for the sale to the state of f 85,000
o per eent bonds of Otoe county. As a
result of that meeting the following let
ter was sent to the county clerk of Otoe
county: ' ?
Lincoln, March 14. 1896. Mr. E. R.
Haas, County Clerk Nebraska City, Neb.
Dear Sir: I am instructed bv the board
of educational lands and funds to notifv
you that after a careful consideration of
your proposal to sell the state $85,000
wona 01 P-ouqs ap pne rate or. $ 3 per
cent interest, payable semi-annually
that we do not feel justified in taking
mein at less than o per cent per annum
payauie semi-annuany, wnich we are
ready to do at any time that will suit
your convenience. An early answer is
desired, as we have propositions from
Saunders county for $100,000 and other
counties sufJcient to exhaust the fund on
hand. Very respectfully,
U. C. Russell,
Secretary Board of Educational Lands
and Funds.
At the time this letter 'was written,
March 14, 1896, according to the report
of the state treasurer, the first of the
month there was in the treasury trust
funds amounting to over $ 690.000.
Learning that this offer of the board
had not been accepted by the authorities
ol Utoe county and that the bonds had
been sold in the east I requested the pur
chaser to submit an offer for the sale of
the bonds to the state. An offer was
made to sell them to the state at 103 per
cent, tnus yielding a rate of 4 7-10 per
cent interest. I thereupon introduced a
resolution to accept their offer upon the
terms stated. This resolution was
amended so as to require them to detach
coupons for the premiums. This coun
wr proposition 01 tne ooara was accep
ted ami it is to De Doped that the trans
ter will be fully completed at an early
date. During the negotiations for tbe
purchase of Saunders county bonds it
was insisted by members of the board
that the state should pay only par value
on a 5 per cent, rate of interest and that
they could be secured on such terms. At
the same time the Saunders countv
authorities had determined to issue 4tf
per cent, bonds and had so notified the
board and had stated that unless the
staue desired to purchase them at par
upon the basis of i per cent, they would
probably go elsewhere. The board failed
to secure the Otoe county bonds on a 5
per cent, basis: they could not secure the
Saunders county bonds at this rate of in
terest, and I am at a loss to understand
where it is expected to secure such secur
ities at that or a higher rate of iuterest.
1 have always been of the opinion that
the board should purchase all Nebraska
county bonds issued until this entire
fund has been invested; that there was a
mutuality of interests between counties
issuing the bonds and tbe state, as the
interest earned by these investments
would all return to tbe different counties
for the benefit of' thecommon schools.
have always expressed the belief that
bonds bearing as low rate of interest as
they could be sold for in the markets at
pur, or, in other words, that the board
should pay as much or a shade more
than otber intended purchasers. This is
the position I have - invariablv assumed
iu tho investments of these funds, and I
believe it to be the only logical conclu
sion to reach. It is tbe duty of the
board to purchase these bonds, yielding
as fair rates of interest as can be ob
tained, for the benefit of the temporary
school fund, but I contend that such in
vestments must be made solely with ref
erence to their fair market valne; and
that the board should be ready so long
as this fund remains uninvested to dupli
cate any bona fide offer that may be
made. Good Nebraska county bonds as
every well informed person knows, can
be floated in the market at par when
drawing from 4 to 5 per cent interest,
and if the board obtains any of them
they will have to take them bearing such
rates of interest. The statement that
such purchases had a tendency to reduco
the earning capacity of the school fund
so invested is entirely unsupported.either
Dy reason or experience.
UNWARRANTED OPINION,
As to the statements made and reiter
ated in these several articles that a
premium cannot be legally paid out of
the permanent school fund' for this class-
of securities, I desire to say that when
the test comes, if we should ever be able
to reach that point, a maioritv of the
board will be of the opinion that it is il
legal to pay a premium out of the per
manent school fnnd, the logical conclu
sion of which would be that it is likewiso
illegal to purchase at' a discount, and
tbakwe would be restricted to the pur
chase of bonds at par, or obtain them
from brokers or others who might be
willing to detach coupons, as has been
done in the past, in payment of such
premiums. "
Ibis proposition has not onlv been ad.
vanced through the press, but at meet.
ings of the board objections to the pay
ment of premiums out of this fund have
been made, and so far the board has
persistently refused to make any offers
to purchase bonds except by the detach
ing of coupons where a payment of prem
ium has been required. - .
lue construction mven to the law ia
entirely unwarranted. It is contrary to
the opinion of the supreme court an
found in the 15th Neb.-, page 685, where
it is held that premiums may legitimate
ly ds paiu out 01 tne permanent school
fund; that the true question to be deter
mined is whether theinvestmentof what
ever sum may be agreed upon is a proper
one, and that the question is left entirely
to sue juaginent oi tne Doara of. educa
tional lands and funds, nor is there any
thing in the constitution or the law pro
hibiting the payment of a premium
whereeverlt may be required in order
that this fund may be profitably in
vested. There has also been established
by the action of this board heretofore a
well defined antecedent for tbe investment
of this fund in this manner. An examin
ation of the reports of the board of edu
cational lands and funds discloses that
heretofore in many instance premiums
have been paid out of the permanent
fund and tbe bonds purchased upon an
agreed rate of interest lower than that
denominated in the bond. To illustrate:
February 8, 1894, the records show that
the board purchased $150,000 Doualas
county 4 per cent bonds npon a basis
of 4 percent, paying therefor $160,893.75
from the permanentschool fund, or $10,
894.75 more than the face of the bonds. ;
h urther on, June 5. 1884. the board an-
thoriznrl thn nnrchnu nf 17 ftflA Jan.
county bonds for $18,565.3!, to be paid
out of the permanent sehool fund. ,
lhese bonds drew interest at 5 percent
and were purchased on a 4 per cent
basis, a premium of $1,566.31 being;
paid therefor.-
Nearly all other Investments obtained
in the last few years were secured in the
same manner, and, while the secureties
purchased may express a high rate of .
interest, the investment in fact yields
only from 4 to 5 per cent, which inures
to the benefit of tbe temporary school
fund. ;
By reference to a report made to the
state legislature and contained in the
Nebraska house journal of 1893, which
should be examined by all persona inter.
ested in this subject, it will be seen that
out a very small proportion of the bonda
then held as an investment for this fund
bearing a higher rate of interest than 5
percent were purchased at par value.
It will be noticed that of the amount ex
pended for bonds up to the time a very
large percentage were bonds bearing not
over a per cent, or were purchased at a
premium, paid either in cash or by clip
ping coupons for accrued interest or
premiums.
FAIR ILLUSTRATIONS.
The above are but a few illustrations
of the methods employed in the purchase
of these bonds, and, while it mav be
stated that bonds now held draw even
as high as 10 per cent interest, it should
be remembered that premiums have been
already paid, very greatly lowering the
rate of interest, and that large amounts
of these bonds have heretofore been
purchased at a rate as low as four per
cent.
Excepting a small issue of $6,500 Val
ley county 4 per cent bonds, which lay
in the treasury vaults for many months,
patiently waiting the action of the
board, finally taken, as shown by the
records, the third of this month, all
bonds which have already been pur
chased or which there appears to me
any immediate prospect of securing, un
less different methods are pursued than
those now employed, have been already '
mentioned. It is proper to remark here
that the $100,000 Saundors couuty
bonds, the purchase of which has been
so vociferously announced, are not to be
issued during the present year, and at
the rate this fund is increasing there
should accumulate in the state treasury
before the first of the year an amount
sufficient to purchase them without re
gard to the fund now an hand.
1 here was also a motion adopted at
one of the meetings of the board to pur
chase about $30,000 of the outstanding
state relief bonds, provided they draw 4
per cent, interest, but whether the party
holding these bonds will part with them
at this rate is, so far as lam informed,
problematical and very uncertain. Like-
(Continued on eighth page.) ,
