Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1877-05-10

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hue county, the time was changed to the
18th, on purpose to suit the farmers of the
State, as the best time to secure a full vote,
and in order that no political complications
should interfere with a full and fair vote
upon the proposition on it's own merits, a
special election was provided for.
1t is believed that the adoption of this
measure will at once enhance the credit of
the State, and thereby lower the rate of in
new railroad and other enterprises, and pro-
mote immigration, that the comparative small
State debt that will be left, if any after apply
ing the proceeds of the 500, 600 acres of land.
will not be burdensome. Before these bonds
mature, if they shall be issued, the State
will have grown immensely in population
and wealth, and that the credit of the State
will no longer be impaired and Minnesota
will no longer stand side by side with Mis-
sissippi.
The defaulting southern States. with a
much larger debt than Minnesota. in their
present impoverished condition offer to fund
their dishonored bonds at fifty per cent. of
the amout due. Can Minnesota afford to
do less?
The statement repeatedly made in the
leading papers of the Eastern States and of
Europe, that the attitude of the State of
Minnesota in regard to her bonds had serious
ly impaired her credit, has been met with
much i%ncredulity in this State ; but the his
tory of the negotiation of the various State
loans that the State has from time to time
been compelled to make, shows very clearly
how a bad financial reputation has affected
us.
These loans, duly advertised in the East.
have failed to attract investors, and in each
and every case have been taken by the State
for her school fund, or by St. Paul banks.
The following extract from the official re-
port of Hon. Charles Scheffer, State Treas
urer in 1868, will illustrate the above state
| ment
"Tbe loan of one hundred thousand
dollars authorized by the last Legislature
was duly advertised in our local, and the
leading eastern papers, and proposals in
| vited at the office of Messrs. p. M. Myers
& Co., New York. When the time for the
opening OF bids arrived I found that but
one had been received, viz, the bid made
by the Commissioners of our State School
Fund, who offered one-fourth per cent.
premium for the entire sum. The loan was
accordingly awarded to them.
"lt may be a matter of surprise to many
that the bonds of Minnesota, a State young
and prosperous, with ample resources and
very small debt, were not eagerly sought for.
1t is certainly not often that a more safe
and remunerative Investment is offered to
capitalists than Minnesota Z per cent. State
Bonds. The explanation Is to be found IN the
unsettled condition of the so-colled Minnesota
State Railroad Bonds, uch;ch haze accun,u-
lated IN the eastern market, and ,uere exhibited
and commented upon whenever the Treasurer
has had occasion to visit New YORK;"
H1G RATE OF INTEREST.
The credit Of the State effects in no small
degree that of her counties, towns, and
school districts.
Some of the larger towns and older coun.
ties have recently succeeded in placing their
loans at reasonable rates under favorable
circumstances; but is it not also true that.
as a ,rhole, the people at large are paying
the penalty of impaired State credit in un-
necessarily high rates of interest on county.
town, and school district loans. The higher
stands State credit, the lower will every
town, county, and school district within
our borders obtain money when obliged to
borrow.
NEW ENTERPRISES.
All will agree on one point: These bonds
must be settled either in full or in part. If
the proposed settlement at about 50 per
| cent. of the amount should be rejected by
vote of the people, will not the world pro-
nounceit deliberate reputation? II so, how
will it affect the future development of the
State. Many sections are without railroad
facilities. They should be supplied. With
out good credit, all such improvements are in
these times wholly out of the question,
They cannot be accomplished.
IMMIGRATION.
This great need of our State will be slim
ulated by the better reputation we shall
enjoy when we are no longer charged with
reputation, and the Internal Improvement
Lands are advertised for sale on long time,
and easy terms, to actual settlers.
Nearly all agree that the bonds-Which
mature in five or six years, when principal
and interest will amount to nearly ten
m~ll]iOns-must be retired on some basis.
Men differ in degree only. Some say ac-
knowledge full principal and interest, others
principal only, others still less. The SETTLE
ment proposed by tie Legislature is a COM
promise, based on the average opinion of a
large legislative committee OF both branches.
The practical questions for each voter to
determine are, not whether the plan proposed
fully accords with his particular views, but
can the State, all things considered, afford
to reject it?
Is it likely that a more favorable proposi.
ton will be soon offered which the State
can, with dignity, accept?
Will these lands, the property of the State.
ever be disposed of in a way more benef.
cial TO the whole people?
If these questions are answered in the
negative, all should vote to apply the lands
towards the payment of the bonds, and for
ever end this vqxp6 nupStion