overnment, or for the construction of canals,
roads, and other public improvements. The interest of these funds, and
the income from other sources, are called the _revenue_.

Sec.5. In some states, school funds are created by appropriating the public
lands, which are lands owned by the state as a body corporate. The
proceeds of these lands, from sales or rents, constitute a part or the
whole of the school fund, the interest of which is annually applied to
the support of schools. If the income from the school fund is
insufficient for this purpose, the deficiency may, as is done in some
states, be supplied, in whole or in part, by taxation, or from the state
treasury.

Sec.6. Many of the new states have large school funds. At an early period,
while most of the territory from which these states have been formed was
yet the property of the United States, and uninhabited, Congress passed
an act by which a particular section of land (number sixteen) in every
township is reserved for the support of schools therein. By this act,
one thirty-sixth part of the lands within each of these states has been
thus appropriated, besides smaller portions granted for the benefit of a
university in each state. These lands are in the charge of proper
officers, who dispose of them, and apply the proceeds as the law
directs.

Sec.7. The school funds of many of the states have been largely increased
by certain moneys received from the United States. In 1837, there had
accumulated in the national treasury about thirty millions of dollars
over and above what was needed for the support of the government. By an
act of congress, this surplus revenue was distributed among the states
then existing, to be kept by them until called for by congress. Although
congress reserved the right to recall the money, it was presumed that it
would never be demanded. That it never will be, is now almost certain.
Many of the states have appropriated large portions of their respective
shares for school purposes. From its having been said to be only
_deposited_ with the states, this fund is sometimes called the _United
States deposit fund_.

Sec.8. School moneys coming from the state treasury, or state fund, are
usually apportioned among the several towns of the state; and each
town's share of such moneys, together with what may come to the town by
taxation or from its school lands, is divided among the several
districts according to the number of children between ce