Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-01-16

The forthcoming report of State Auditor
Whtcomb will present comprehensive state
ment of the financial condition of the State.
We give such extracts as our space will per-
NIT this morning.
1t has been necessary during the last year to
constantly discriminate and at times to as
sumo authority in drawing warrants upon the
treasury IN order to prevent their being forced
upon the market at excessive rates Of discount
The current expense of the State government
had to be paid, but all expenditures under ex-
traordinary appropriations have been met with
time warrants.
Of these warrants there were outstanding
against the revenue fund at the close of the fs-
cal year $97541.84, besides 1924, 460lO of over
drafts, making total of 1220Ol.94 floating
debt
Since the first of December the increasing
overdrafts on the revenue fund have entirely
exhausted the balances of the interest and
sinking funds and the state treasurer has been
obliged to make special arrangements with the
banks to cash warrants drawn for ordinary
current OK oenses, while the several State
institutions have taken time warrants and dis
counted them to meet their current expenses.
The treasury has never been in quite so de-
pleted condition, nor has it ever been neces-
sary before to manage in many ways to tide
over the State credit since the memorable time
In the financial history of the State when
auditors warrants were first redeemed by the
treasurer on presentation.
There are no funds in the treasury available
for the current expenses of the State govern
ment, even the State institutions fund is ex-
hausted; something which has never occurred
before since it was established. An inspection
OF the preceding statement of disbursements
from the revenue fund will show the cause of
this unusual condition of the funds. The ex-
traordinary disbursements of the wear amount
in round numbers to 100000,
The payment of this large amount and the
failure to receive any income from the labor of
conVicts In the State prison, which was esti-
mated for the year at $4,000, with the bur-
the previous year, have altogether caused the
present EN- barrassment.
This may be temporarily relieved bv special
act authorizing the use of the general school
fund until the March apportionment. The re-
celpts from railroads and insurance companies
and from collections of State taxes before that
time will meet the ordinary legislative and
other State expenses but it may be found
necessary to authorize a small temporary loan
to pay expenses from March to June, when the
largest tax collection of the year will become
available: The prospective receipts of the
treasury from all sources during the ensuing
year will not admit Of any large appropriation
for building or other extraordinary purposes.
All such expenditure will have to be deferred
until next year, when the taxes for the year
1917 Will become available.
THE STATE DEBT.
There were 100000 of bonds outstanding at
the beginning of the fiscal year; of this amount
300, 1000 loan of 1868 were redeemed at MATURE
ty, July l. leaving $5O, 900 loan of 1869, matur-
ing July l, 1879, and $25O00O loan of 1878,
maturing 1888, outstanding, to be redeemed
from regular receipts of sinking fund from
general taxes collected. Under act of the last
legislature A. tenn loan of *Cn0
authorized, and per cent. bonds were
issued to fund Indebtedness incurred in
1877 and 1878, in furnishing seed grain to
grasshopper sufferers for which special taxes
were levied against the parties receiving aid,
to oe extended on the tax lists of 1877, rs and
'79. 1t is provided that all money received
from taxes for seed grain furnished in 1878.
amounting to $150,00O, shall go into the sink
ing fund for the redemption of these bonds,
1t should be further provided that $4,000 of
the amount received from taxes for seed grain
furnished in 1877 should also be appropriated
for this purpose, and thus provide for the re-
demrtion of the entire amount of bonds issued
on the temporary loan without resorting to
general taxation for such purpose.
THE RAILROAD BOND DEBT.
This debt incurred in 1868 to aid in the con-
struction of railroads amounted to 2,275, 600.
The accrued interest now amounts to So, $751;
$50, making the total amount of sc, 256,25O.
An act Of the last legislature proposed to de-
vote the State internal improvement lands and
the proceeds of those sold to the payment of
this debt This act having failed to become
tied. The act provided for distribute
ing the 100000 acres of land
in equal quantities among the bond
holders, giving them about 200 acres for each
bond. If the land had been divided into par
cells of equal value instead of equal acreage,
ha 1ffo for :
fair and equitable; but considering the great
diversity in value of the different tracts, some
being worth many times more than
others, it was obviously unfair and objection
able. If another adjustment of this matter
should be attempted at this session, this sug-
gestion may be considered.
THE PERMANENT SCHOOL FUND.
The increase of this fund during the year
has been $3.50. 932.13, which is more than
double the amount of average annual increase
since the fund was established in 1862. It
now amounts to SO, $50, 159.46. OF this amount
1928 967. sc has been realized from profits on
purchases and sales of bonds, while the bonds
now held by the fnnd have cost $21 1862
more than their par value. It will be seen
that when all of these bonds mature, the fund
will be reduced by this amount, and that the
actual increase of the fund on this account
will finally only amount to $7,72094. To pre-
vent ultlmate loss 70 tnls Iund the premium
on all bonds purchased during the year 1878
has been paid from the general school fund,
and this policy will be pursued in the future
so that the actual income of the fund will be
reduced to the amount of premium paid on
bonds.
PERMANENT UNIVERSITY FUND.
This fund amounts to 1924, 647.74, the in
crease during the year being $40, 657.92. The
| fund has been augmented during the last FIVE
years 100000 on account of reimbursement for
| proceeds OF timber sold and used for current