INTEREST ON SCHOOL FUNDS.
Mr. Rahm's bill [S. 13] to amend Section 8 of the Common School law of 1865, so as to reduce the rate of interest on school funds to 6 per cent., being read a third time--
Mr. VIEHE saw no objection to the bill, except it does not require the interest to be payeble in advance, as has been customary with all school funds.
Mr. TAYLOR opposed the bill because it will cripple the school fund one-fourth. He was satisfied that eighty-two out of the ninety-two Counties of the State have already their money loaned at 8 per cent., and could not see the consistency of reducing the income to the school fund one-fourth because some few Auditors have some money on hand unloaned.
Mr. MENZIES said the author of the bill agrees to have it lie on the table, to be considered when the school of law codification is considered.
Mr. FOSTER objected to delay.
Mr. OWEN had a list covering one-fourth of the Counties, showing that but 3 per cent. of the whole amount remains unloaned. The question should be: How much can we get legally and not usurious? If the legal rate of interest is reduced from 8 to 6 per cent., the rate on these funds ought to be reduced, and the bill should await action on the interest bills before the General Assembly.
Mr. VOYLES believed that the rate of interest on the public moneys ought to be lowered.
Mr. Rahm thought it but right and just that the rate of interest on school funds should be reduced. Senators should relieve those so poor as to have to mortgage their farms to get this money from paying 8 per cent., when 6 is enough, He believed it wrong to ask more, even if we could get it. In his County money can be obtained for less than 8 per cent., and some $7,000 or $9,000 of the school funds are now lying idle. The bill read that the interest should be paid in advance, and he desired it should read so now.
Mr Chapman considered it as well to meet this this question now as at any other time, whether the rate of interest of the school fund shall be reduced from 8 to 6 pe cent. He opposed the proposition, and opposed delay.
Mr. URMSTON believed the bill it passed as it is, would change the rate of interest entirely. Then the title and the body of the bill are at variance. It should be recommitted.
Mr. HENRY desired to see the bill defeated or indefinitely postponed.
On motion by Mr. CHAPMAN, the bill was indefinitely postponed--yeas, 21; nays 19.
