their claims in 1830, and accepted a one-half township. Eight years later the University of Nashville (formerly Cumberland College) also accepted the one-half township substitution."

Out of the 11,520 acres thus granted, East Tennessee College had, by 1839, realized $34,397," while the University of Nashville received about $40,000 from the sale of its one-half township." The data at hand seem to indicate that the present University of Tennessee (formerly East Tennessee College and University) received a total of about $60,000 from the Congressional grant of 50,000 acres, most of which was expended in buildings, a college farm, and for other expenses. Of this sum, $5,000 are still held by the University in State certificates, and are said to represent the balance of the original endowment fund. What may be the present condition of the fund of the University of Nashville, the writer has been unable to determine. This University had an interesting and varied experience, suspended operations for a time, and finally reorganized its literary department in 1875 as the State Normal College, better known as the Peabody Normal College.

Distribution Act of 1841

Tennessee's share was $29,703.28.5 By an act of State Legislature, February 3, 1842, one-half of this was ordered deposited in the bank of Tennessee as a part of the common school fund. For the history of this fund see "Grant for Common Schools."

53

Surplus Revenue of 1836

The $1,433,757.58 received by Tennessee were, by an act of January 19, 1838, "to establish a State bank, to raise a fund for internal improvement, and to aid in the establishment of a system of education," appropriated towards the $5,000,000

capital of the projected State bank, of which capital the school fund and some other moneys were to form a part." Of the dividends of this bank $100,000 were to be annually appropriated for common schools, and $18,000 for the county academies. During the nineteen years ending October 1857, the academies had received $325,667 from this source, being $16,333 short of the true amount.65 What amounts may have accrued to the common schools, the writer has not been able to determine.

Bourne has indicated as the result of his investigations that a portion of the interest on this surplus revenue deposit may be considered as having contributed to the support of common schools. For example, the revenue on the school fund proper, in 1837, was only about $11,000 a year. The $100,000 directed to be paid the schools by the bank, less this income, gives $89,000, which equals about six per cent. on the surplus revenue.56

It is plain, however, that for a time the schools derived an advantage from the surplus revenue; for it is probable that without the receipt of this money such a relatively large appropriation for schools would not have been made. Nevertheless, the bank was forced to succumb to the heavy drafts made upon its resources, and in 1865 was declared insolvent. Both the surplus revenue fund and the school fund had been used up in this State banking venture, and this debt of the State to the school fund was recognized in the Constitution of 1870 to be $1,500,000.57 A law of 1873 added to this amount the accrued interest, and thus recognized a permanent State school fund of $2,512,500, upon which the State issued a certificate of indebtedness paying six per cent. interest semi-annually.5

54 Bourne, III.

56 Bourne, 112, foot-note.

School Laws, 1895, 18.

55

5 Rep. Controller, 1857, 12.

57 Constitution, 1870, Art. XI, sec. 12.

Agricultural and Mechanical College Grant

The existence of the Civil War had prevented Tennessee from accepting the agricultural college grant of 1862 within the time limit set by Congress. Accordingly, by a joint resolution of 1867," Congress extended the provisions of this act to Tennessee, which were accepted by the State Legislature on February 1, 1868. The 300,000 acres in scrip were readily sold, and the proceeds amounting to $396,000 were invested in six per cent. Tennessee bonds, interest payable semiannually. On January 16, 1869, an act of the General Assembly appropriated the fund thus arising to the East Tennessee University at Knoxville, on condition that the University establish an agricultural college conformably to the act of Congress." In 1879, the East Tennessee University was reorganized as the University of Tennessee, and as a result of the reorganization the agricultural college, which had been a department of the former institution, now became an integral department of the State University.

Agricultural Experiment Station Act of 1887

This annual gift of $15,000 from the General Government for the advancement of agriculture by encouraging the establishment of agricultural experiment stations, was accepted by the State Legislature on March 28, 1887, and bestowed upon the agricultural department of the University of Tennessee."

Government Grant of 1890

To this endowment the State Legislature assented in an act passed February 20, 1891, and in conformity to the provisions of the congressional grant the moneys annually arising from this source are vested in the University of Tennessee."

59 14 S., Rev. 31, p. 569. Feb. 28, 1867.

MISCELLANEOUS

Grant to West Tennessee College

In 1846 Congress surrendered to the State of Tennessee all title which the United States had in certain lands south and west of the Congressional Reservation Line, and, furthermore, released to the State the proceeds of such lands within that tract which had been sold by the State as agent for the United States. This surrender was made upon the express condition that out of the proceeds of the lands thus ceded, the State would apply $40,000 towards the establishment and support of a college at Jackson, Madison County." The Legislature, accordingly, established and endowed, at Jackson, the West Tennessee College, which before the Civil War was a prosperous and successful institution. The institution resumed work in 1865, and continued thus until August, 1874, when the entire endowment fund and buildings were turned over to the trustees of the Southwestern Baptist University," an institution still in existence.

Special Grant to East Tennessee University

An act of Congress of June 22, 1874, appropriated $18,500 for the relief of the East Tennessee University because of the aid given to the army of the United States by the University during the Rebellion."

65

Grant to Fiske University

The United States had purchased 34 acres of land on the site of Fort Houston. This tract of land was, by act of June 23, 1874, granted to the Fiske University, of Nashville, for educational purposes.

66

63 9 S., c. 92, p. 66. Aug. 7, 1846.

64 Tenn. Sch. Rep., 1875, 240–244.

65 18 S., c. 440, p. 604.

66 18 S., c. 478, p. 276.

CHAPTER VII

INDIANA

INDIANA constituted a portion of the Northwest Territory, and thus fell heir to the educational rights and privileges enumerated in the Ordinance of 1785, which reserved "the lot No. 16, of every township, for the maintenance of public schools within the said township," and in the Ordinance of 1787, which stipulated that " schools and the means of education shall forever be encouraged." The act of Congress of May 7, 1800, creating the Indiana Territory, specifically enacted that the inhabitants of the Indiana Territory should ❝ enjoy all the rights and privileges given by the Ordinance of 1787."

Sixteenth Section Grant

As early as March 26, 1804, Congress passed the first act relating definitely to the school lands in Indiana. In that act provision was made for the disposal of public lands in the Territory, and in the Vincennes land district thus created section "number sixteen" was "reserved in each township for the support of schools within the same.'

994

An act of March 3, 1805, imposed the same conditions of sale on the lands purchased from the Indian tribes of the Wabash as were imposed on the other lands lying within the district of Vincennes. The year following, April 21, 1806, Congress declared section sixteen reserved from pre-emption. By an act of 1808, the Territorial Legislature assumed control

1 Public Land, Laws, c. 14. $2 S., c. 41, s. 2, p. 59.

2 Ibid., c. 20.

4 2 S., c. 35, s. 5, p. 279.

6

52 S., c. 43, s. I, p. 343.

2 S., c. 40, s. 4, p. 395.