school commissioner, to be loaned in the same way as the congressional township fund. The school commissioner was required to certify to the Treasurer of State the amount of such lands and the sums paid within each year for their redemption and to submit his books and proceedings to the county commissioner for examination.' The Treasurer reported in 1833 but twenty-two counties out of sixty-seven, from which the school commissioners had made returns relative to the delinquent land taxes.* There was no improvement for several years. Although an attempt at reform was made in 1839,3 its results did not fulfill expectations. In 1842 it was officially declared that only twenty-five counties of the eighty-seven had made any collections on the delinquent lands and lots for seven consecutive years. In 1843 the proceeds arising from the sale of the lands for delinquent taxes were made part of the general revenues of the county and State. By virtue of an act of 1853 they were again applied to the common school fund. The exact amount which was turned over to the school commissioners under these laws cannot be definitely ascertained. It has been estimated at from $50,000 to $75,000. The cost of management was considerable, and the remainder was not credited to the school fund, but was expended for current needs; so that the purpose for which it was designed by law was not attained. 'Laws, 1831-2,, pp. 264-5. 2 Rep't of Treasurer, 1833, in Laws, 1833-4, p. 382. Two years later he pointed out that the looseness seemed to consist: (1) "In the neglect in some instances of collectors in making proper returns to the school commissioners; (2) in the most culpable neglect on the part of school commissioners in failing to make returns to the Treasurer of State, and (3) in the great imperfection and want of uniformity in such returns as made." Sen. Journ., 1834-5, p. 140. 3 'Laws, 1838–9, pp. 38-40. Rev. Stat., 1843, pp. 219, 224. 4 Report of Auditor, 1842, p. 93. • Laws, 1853, P. 55. A few minor funds were created from time to time, such as money lost at gambling and recovered by law when the loser had no near relatives,' court fees remaining unclaimed," forfeitures of recognizances,3 escheated estates, and proceeds from the sale of estrays after the payment of expenses. The amounts derived from these sources were insignificant, and no special mention of their administration is required here. IV. The Saline Fund. The enabling act of Congress authorizing the formation of a State Constitution, granted to the State all the salt springs within Indiana Territory with the adjacent lands which were necessary for their working. The State Legislature was empowered to prescribe the terms, conditions and regulations of their use with the proviso, that they should never be sold nor leased for a longer period than ten years at a time.5 For several years the rents received from these springs and lands were turned into the general fund of the State. Congress, in 1832, granted the State authority to sell these lands on condition that the proceeds should be used for the purpose of education. The receipts from the sales were paid into the State treasury and were declared to be a permanent fund, the income of which was to be devoted to the common schools. The moneys were loaned by the State Treasurer, who made an annual report to the General Assembly. Here was a fund created by the positive act of the State and designed for the use of the whole State, not of certain townships within it. Its management was, therefore, placed directly in the hands of State officers. It was allowed to 1 Laws, 1816-7, p. 94. Laws, 1843, p. 93. U. S. Statutes at Large, iii, p. 289. 'Laws, 1841-2, p. 131. • Rev. Stat., 1843, p. 438. 'Laws, 1826-7, p. 103, and U. S. Statutes, iv, 558. 'Laws, 1832-3, pp. 124-129; 1833-4, pp. 324-6. accumulate until 1845, when the Legislature ordered its distribution among the counties according to the number of taxable polls. It was to be loaned as other school funds, and the counties were made responsible for its safe keeping and for the payment of the annual interest.' The final sales were not made for many years, and the account was at last settled in 1873. The total amount which was turned into the permanent school fund, was about $85,000. In 1852 it was consolidated with the other funds. V. The Surplus Revenue Fund. The General Assembly in 1837 set apart as a common school fund one-half of the Surplus Revenue to which the State was entitled under the act of Congress of June 23, 1836.3 This, also, was a State fund. It was a notable instance in which the representatives of the people recognized that the school system should be a State system. Although the act imposed upon the Commonwealth no burden of taxation, it was a manifestation of a laudable liberality on its part; for the State had in the previous year authorized the borrowing of $10,000,000 for the development of internal improvements, and the annual revenue was less than $65,000. It is interesting to note the manner in which the State assumed the management of this fund. It was to be apportioned among the several counties in proportion to the number of taxable polls for the year 1836; and every fifth year a new apportionment was to be made on this basis. The Legislature itself was to appoint annually in each county an agent who was to be under a bond filed and recorded with 'Laws, 1844-5, pp. 60-2. See also pages 45 and 51 above. The first two quarterly installments were turned over to the school fund. The fourth installment was never paid, so that two-thirds of the amount actually paid was devoted to the cause of education. U. S. Statutes, v, p. 55. The State debt in 1837 amounted to $5,437,000. the county clerk, a certificate of which was to be sent to the Treasurer of State. The agent was authorized to receive and loan the money under the restrictions and regulations prescribed by the law; and to pay the interest over to the school commissioner, to be paid by him to the several township treasurers. The agent and the school commissioner were required to make quarterly reports directly to the Treasurer of State. It was the duty of the Treasurer of State to report the same annually to the General Assembly and to commence suit against any agent who should fail to comply with the provisions of the act. In case of any such failure or refusal on the part of the agent his authority at once expired.' This action seemed to indicate that as soon as the people should come to realize that the common schools were a State institution maintained by a State fund, thereupon the State would assume a stricter control over their finances and their management. The law though sound in theory proved ineffective in practice. In the first report of the Treasurer which contained a reference to this fund, we find him regretting that several of the agents having in charge the loaning of it had neglected to make their quarterly reports. He called attention to the insecurity of the fund, and showed that borrowers were deficient in the payment of interest to the amount of $3,695-about 12 per cent. of the total income from it. Notwithstanding the imposition of further penalties,3 the Treasurer reported in 1839 that only thirty out of eighty-four clerks had certified that the loaning agents had given the required bonds; and that many of them had 1 Laws, 1836-7, pp. 3-5. 10. 'Rep't of Treas, in relation to Surplus Revenue, 1838, Doc. Journ., 1838–9, PP. 324-5. Laws, 1838-9, pp. 30–1. failed to make reports to his office. In the following years there was little improvement.2 An act of 1841 provided that as the loans already made should be paid off, the surplus revenue fund, the college fund, the State bank school fund, and the saline fund should be gradually invested in the stock of the State Bank of Indiana. But it was left with the several boards of county commissioners to decide whether or not the surplus revenue fund should be so disposed of.3 Only eighteen of the eighty-one counties consented to the investment of the surplus revenue fund in bank stock; and only $1,413 were so invested.s In the following year the power to appoint the loaning agents was transferred to the several boards of county commissioners. It was the duty of these agents to report in full semi-annually to the county auditor, who reported to the county board. The auditor if he thought the fund unsafe, or found any misconduct in the agent, was immediately to cause the county board to convene. It had power to remove the agent, and to hold him or his sureties liable for any losses to the fund. For failure to comply strictly with the law each member of the county board was liable to a fine upon conviction. But the complaints concerning the management of the fund did not cease." In 1843 the counties were made liable for the preservation of this fund as well as the congressional township fund. In 'Doc. Journ., 1839-40, House Rep'ts, pp. 57–8. 'Rep't of Treasurer, 1840, Doc. Journ., 1840-1, House Rep'ts, p. 9. Ibid., 1841, Doc. Journ., 1841-2, House Rep'ts, pp. 87-8. 3 Laws, 1840-1, pp. 192-195. Rep't of Treasurer, 1841, Doc. Journ., House Rep'ts, pp. 88, 106. Sen. Journ., 1842-3, p. 155. 6 Laws, 1841-2, pp. 80-1. Rep't of Auditor, 1842, Doc. Journ., 1842–3, House Rep'ts, pp. 89-93. |