complied with, before they part with the money. Notwithstanding all these precautions the law is deficient, and if public officers had not been more mindful of the interests of this fund, than the legislature has been, it might have suffered in consequence of such defect. Several defects of the law were pointed out by the commissioners in their annual reports, in the years 1851 and 1852, but no amendment has yet been made. The commissioners, however, did their duty, and supplied what was wanting by rules requiring applicants to produce a certificate of the clerk of the board of supervisors of the county, that the land offered as security is clear from taxes or outstanding tax titles, and, in some cases, the certificate of the clerk of the district court of the United States, that there are no judgments of that court affecting the title. These, together with other rules calculated to easure greater certainty of the sufficiency of securities offered, we have adopted; and, except the certificate of the clerk of the United States district court, which we only require when we deem it proper to do so, evidences of security in accordance therewith will be found with the papers relating to every loan made by us. With such precautions strictly observed. and with due investigation of title, we have great confidence that the fund will not be likely to incur even inconsiderable losses. The loans being small in amount are generally applied for by persons who need a little money, at a reasonable rate of interest, to improve their farms, or to retain possession of them. and with the rise in the value of real estate, the security being every year enhanced, the failures to make payment of interest or of principal, now but few, will be proportionally lessened. The Taw, providing in Sec. 74. Chap. 21, Revised Statutes, that no loan shall be made for a longer period than five years, provides any person obtaining a loan may have the privilege of the time of payment of the principal from year to year, on Payment fitiually in advance of the interest on the sum duc, at the rate of interest specified in the original mortgage, and the legislaturel mdybheocnfter change the law so as to require payment of mitchdogwdd mibney at any time after one year frem the time when stliestisi gizal credit shall have expired," By this provision while the borrower has the privilege of extending the time of paying the principal of the loan made to him, upon performance of the condition named, he is left to the uncertainty of the action of the legislature, which may, in its discretion, at any time after one year from the date of the loan call in the whole amount. Instead of this we are of the opinion, and we respectfully suggest, the amendment of the law to that effect, that the interest being paid annually, the period for which loans are made should be extended to ten years, or even a longer time. To require the payment of the principal in any shorter period, is only to incur the trouble of making a new investment, which would be useless when the security for one already made stands good. While the interests of the fund would in no wise suffer from such a provision, the accommodation to the class of persons, who are in general the borrowers, would be very greatly increased. TOTAL OF LOANS. Whole amount due from individuals in the several counties on account of loans from the school and University funds, on the thirty first day of December, 1853, Amount of loans made to individuals in 1854 $154,886 51 82,788 73 12,735 33 $250,410 57 4,866, 00 $245,544 57 Amount received on account of School Fund during the year For a complete and detailed statement of the receipts and disbursements of these funds, we refer to the report of the Secretary of State, for the year ending December 31st, 1854, and for information in relation to the amount of school and university funds now in the treasury, subject to loan, we refer to the report of the State Treasurer. The capital of the school fund amounts, at this time, to, the sum of $1,670,258 77, being an increase since December 31st, 1853, of $528,454 49. This capital consists of the following items: Due on sales of land, heretofore made Due on school fund loans In the treasury $1,415,262 50 220,314 24 34,682 03 $1,670,258 77 The capital of the university fund to this date, amounts to the The following statement exhibits the number of acres of school and university lands forfeited in the different counties during the year 1854, the number of acres sold and the number of acres unsold, together with the amount sold for, and the amount of five per cent. penalty realized to the school fund on that account: Forfeited Lands, Sixteenth Section. |