III.-EDUCATIONAL AGENCIES.

SCHOOL FUND.

1. From October 1st, 1859, to Sept. 30th, 1860, there was paid into the Treasury, as interest upon School Fund Loans, and School Lands, the sum of $156,348,27.

At 7 per cent. interest, this would show a productive fund of $2,233,546,71.

During the same period there was paid upon Swamp Lands, and Loans from the Drainage Fund, the sum of $29,721,37, which, at 7 per cent., would show a Productive Fund of $124591. One-fourth of this fund, or $106,147,75, properly belongs to the School Fund.

The whole Productive Fund for the fiscal year, ending Sept. 30, 1860, may be stated as follows:

School Lands and School Fund Loans,..
Swamp Lands, one-fourth,....

Total Fund,.....

$2,232,546,71 106,147,75 $2,339,694,46

Of the lands already surveyed, the State holds 115,600 acres of 16th section lands, which have never been sold. These lands are appraised at $1,25 a $1,50 per acre. Taking the lowest appraisal, these lands will bring to the State, when sold the sum of $144,500.

School Lands forfeited, and not yet resold are as follows:

At

These lands were appraised at $1 25 to $4 per acre. their lowest appraisal they will, when sold, add to the School Fund the sum of $441,050.

Swamp Lands unsold can not be stated. There are ready for market, or nearly so, about 500,000 acres.

The amount forfeited and not yet re-sold is as follows:

Which, at an appraisal of $1 25 per acre, would further increase the School Fund

$308,912 50

Under the supposition that the unsold lands and the forfeited lands will eventually be sold at their minimum appraisal, the Fund, if not still further depleted, will. stand as follows:

NOTE.-The above does not include the 16th Section Lands that will go to increase the School Fund from parts of the State not yet settled, nor the Swamp Lands not ready for market, nor the 140,000 acres claimed from General Government, nor the 5 per cent. proceeds of the sale of Public Lands withheld by General Government. From these sources the Fund may be increased, but it is impossible to tell how much increase may be expected from them, and for this reason I have not included them.

The following letter from the School Land Commissioners, will show what are the prospects of increase from sale of lands:

Hon. J. L. Pickard, State Superintendent:

DEAR SIR,-Answering your favor of the 13th, asking the opinion of the School Land Commissioners as to "the prospects of increasing the School Fund from the sales of unsold and forfeited lands, and whether the lands now in market are likely to bring, on an average, one dollar and a quarter per acre within ten years," I have to say-to your first inquiry:

The Commissioners share in what seems to be a prevailing impression, that there will be more inquiry for school and other lands belonging to the State, for a year to come, than in any one of the three preceding years. The abundant harvest of the past season has induced a better feeling in regard to property in lands, and at the same time supplied greater means to buy with, in the hands of the class of citizens likely to want lands for actual settlement. With no panic intervening, in currency or prices, the sales of land the present year, will, doubtless, be very largely in increase over those of any recent year.

The total cash receipts from sales of lands by the State, for the fiscal year ending September 31st, 1860, are as follows:

One fourth of the net income of the fund derived from sale of swamp lands, inures to the benefit of the school fund. In reply to your second inquiry, the Commissioners are quite agreed and confident in the opinion that could the State lands be all graded by an honest and careful appraisement, having regard to their real value for sale to actual settlers, without allowing speculators to make a profit between the State and those who want them for occupancy and cultivation, the State might realize within ten years from their sale, a sum equal to one dollar and a quarter per acre for the whole. By the present system, selling such lands at ten shillings per acre as speculators find chance for gain in buying at that price, and retaining the culled lands, holding them at the same price-the State must fall far short of realizing, within ten years, or ever, to equal the average you name. In behalf of the Commissioners,

I remain, yours respectfully,
L. P. HARVEY,

Secretary of State.

Of the Forfeited Lands for 1860, I am informed less than 7 per cent. were redeemed or re-sold at the sales of November, 27th.

The following letter from His Excellency, Governor Randall, will show the condition of the claim of this State against the General Government. In previous reports this subject has been dwelt upon at sufficient length. The letter will speak for itself:

"Hon. J. L. Pickard, Superintendent of Public Instruction : "DEAR SIR,-Your letter, inquiring in regard to the position of the Commissioner of the General Land Office, relative

to the five per cent. of the proceeds of sales of public lands, &c., is received.

"The Commissioner has refused to settle with the State, unless the State will allow, as an offset to its claim, a pretended claim of the General Government against the State, growing out of the disposition of lands granted to aid in the construction of the Milwaukee and Rock River Canal.

"The pretence of the Commissioner is unconscionable. By an arbitrary rule, the Government withholds not only the five per cent. due the State, but also more than three hundred thousand dollars for swamp lands, sold by the Government, which belonged to the State. These moneys are withheld in defiance of the law and without any good reason. Nothing efficient has been done in Congress for our relief.

"Obstacles have been thrown in the way of the settlement of our claims by the Canal Company or its agents, both before the departments and the Congressional committees. I have no doubt, however, that within the coming year, if proer efforts are made, all these claims of the State against the Government will be satisfactorily settled.

Very respectfully,

ALEX. W. RANDALL."

In addition to amount from sale of lands, another source of increase to the School Fund is found in fines and forfeitures, &c. This increase may be estimated at little more than $2,000 per annum. Since 1855 the average increase has been $2,256 75. The amount realized does not vary much since the law providing for agents to collect these fines was repealed. By these agents more was collected, but their fees consumed the excess.

The forfeited lists for 1860 show a forfeiture of about 6,000 tracts of 16th Section lands, or 240,000 acres, at an appraisal of $1 25 per acre, making a loss to the immediate productive fund of $360,000.

Adding to this the fourth part of 280,000 acres forfeited from Swamp Lands, and the loss to the immediate productive fund will be, in addition to the $360,000 given above, $37,500; making the total loss $447,500. By the sales of November 27th, this amount has been decreased about $31,325; leaving the actual loss to the immediate productive fund $416,175; diminishing the annual income $29,132 25. This diminution has been felt the present year, and will be felt each year until the lands are again sold. The lands still remain as the property of the State, and may at some time be re-sold. In many cases, however, the lands forfeited are

almost absolutely worthless, so that 'the fund must suffer a loss, unless some plan of gradation of lands be adopted. It is futile to expect that the State will realize all that is due on the lands forfeited. Interest, taxes, penalty and forfeiture added to the appraisal will, in very many cases, prevent the sale. This subject should receive earnest attention. I would recommend that the 16th section lands now unsold be thrown open to actual settlers in tracts of from 40 to 160 acres; that no advance payment be required, except the annual interest of 7 per cent. To secure actual occupancy two years interest might be required in advance. The settler should have the privilege of purchasing the land at any time after a term of seven years, or of retaining posession for any number of years, during which he pays the annual interest. The objec tion that settlers would go upon the lands for a year or two and strip them of whatever is valuable and then forfeit them, is an objection in force against the present system, and it must be met in the same way, by the faithfulness of the officers whose duty it is to protect the School Lands from trespass, beyond what is absolutely necessary to occupancy and improvement. By glancing at the list of forfeited lands it will be seen that a very large share is held by non residents. It appears to me that this measure would secure the settlement of these lands and eventually their sale, or in case of forfeiture, they would come back to the State increased rather than lessened in value.

Aside from the loss to the immediate Productive Fund, the following extracts from the Report of the School Land Commissioners will show an absolute loss in the matter of loans:

"MORTGAGED LANDS FORFEITED IN 1858-9.

"We have endeavored by inquiries and a somewhat extensive correspondence, to gather reliable information concerning the value of the mortgaged lands forfeited to the State in 1858 and 1859, and also as to the responsibility of the mortgagors.

"The number of forfeited mortgages in 1858 was: School Land Loans, 49; Drainage Fund, 2. Total, 51. These Lands were mortgaged to secure loans amounting to $23,628 89, and now bid in by the State for $1,195 30. The actual value of these lands at average selling rates, as shown by correspondents' estimates, is $5,200.

"The number of forfeited mortgages in 1859 was: School Land Loans, 102; University, 3; Drainage Fund, 11. Total, 116. These are held by the State as security for loans