St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-01-08

PiOpOSiltOAS luNOlhiuS du OIL
money, and that you viii not make appropri-
atoms beyond the limit of the probable reve-
nue. of the state. While providing adequately
for the increased requirements of our public
institutions and the several departments of
the state government made necessary by our
rapid growth in population, care and discrim
ination in making appropriations may save
unnecessary and perhaps wasteful drafts
upon the revenues.
In 1879 all receipts for taxes on railroad
and telegraph companies were set apart as a
special fund for the support of the state in
situations. At that time the amount realized
from these sources was but $57, 1t
has now become the principal source of rev.
enue the state enjoys, amounting the past
year to s65l, 37S. 10, largely in excess of the
demands made upon it. If there was once a
suffi lent reason for reserving this resource
for special use il does rot now exist, and
recommend that the law relating thereto be
repealed. Wnile there has been for wears a
surplus in this fund, the revenue fund, from
which all general expenses of the state are
paid, is constantly overdrawn, and a Dor
rover from it. The two funds should be
merged into one and relieve the treasury
from the anomalous condition OF plethora
and stringency at the same time as reg Irds
its different funds. IL will be necessary to
do this before tue treasurer can meet the pay
rolls OF the Legislature, as the ''overdraft'' OF
the revenue fund has reached the limit al
lowed by law. The surplus of the forestry
fund should also be transferred to the reve-
nue. fund as recommended by the auditor.
The additions to the permanent trust funds
of the state have been as follows.
Permanent school funds. .... $685., 800 IS
Permanent university fund. ..... 37,663 81
Internal improvement land fund.-. 1879, 52S 90
Total. ACKNOWLEDGEMENTS 81, 1l0,49S ~
The aggregate accumulations of these
funds amount to SS,2l9, ops 80, divided and
invested as follows
PERMANENT SCHOOL FUND
Cash. -. Observation-Disclosures. S434, 803 80
Land contracts barring per cent,
in,erest..... Decentralization. S,126,313 08
Unpaid drafts, drawn prior TO Dec.
l, l582...... .......... 1851 %
81, 923, 900 Minnesota railroad ad-
justment bonds. ........... 1929 OBS 90
sou, 0JU Min lesota revenue bonds 100000 90
1895, 900 United States registered
per cent. bonds. 46O,95S "
$4,000 United States registered
AZ per cent. bonds. ...... 81, 9s9 IS
$4,000 Missouri per cent. bonds 1859 90
So, ,632 80
Cash NEUTRALITY-SUSPICIOUS.. S!S,7 52 81
Land contracts bearing per cent.
interest ............... s47,226 SO
s221,O 90 Minnesota railroad adjust
ment bonds 277,OOO 90
Fruit farm. Observation-Disclosures. 1909 10
Experimental farm. $500 90
1862, 7ss 80
INTERNAL INVOLVEMENT LAND FUND.
Cash NEUTRALITY-SUSPICIOUS.. $16,1S5 II
Land contracts bearing7 per cent.
interest. Observation-Disclosures. 9G2,47o 60
S392, 900 Minnesota railroad ADJUST
ment bonds. ................. 322 OOJ 90
81, 30O,G05 II
The congressional grant of land for the
use of schools it is estimated will amount 10
about 5000, 900 acres when the surveys Of
the state are completed. 90S, l45 acres of
this have been sold at an average of So .02
per acre. Estim Ited upon tnis basis tae
common school fund will ultimately realize
over SlS,000,00 from this source. This
will probably be increased to over SO, 000,-
900 by sale Of swamp lands inuring to this
fund after prior grants are satisfied
The permanent university grant has
90, 0Sl acres yet to be disposed Of. which will
swell the accommodations OF its fund 10 fully
81, 600, 900, and ultimately constitute an en-
dOwmeut for our state university that will
assure ITS future financial stability.
The internal improvement land fund has
pa, S33 acres OF its grant yet unsolG. Its
final accugulations should be nearly 50, 000,
600. This Nay properly be denomlnated Il
sin king fund for the REDEEM Dtion OF the state
railroad adjustment bonds, as il has been
provided by constitutional amendment that
all the revenues of this fund shall he applied
to the payment of the principal and interest
of those bonds.
STATE DEBT.
The present Indebtedness of the state is
represented by the following issue Of bonds !:
Railroad adjustment bonds Issue OF
1891. due 10 twenty, and redeemab.e
IN ten years, - per cent. 4, 2S3, 900
Revenue bonds issue OF 1853, redeem
able at the pleasure OF the state, az
per cent. .-................... 2OO,OO0
Total. OBSERVATION-DISCLOSURES. 81, is3,OO0
The revenue bonds will be redeemed with
in the next three years, provision having
been made therefor. TIE trust funds OF tue
state hold 81. 523, 900 of the adjustment
bonds, 1922, 900 of which are in the internal
Improvement or ''sinking fund" These
latter might properly be cancelled
and the Indebtedness OF the
state reduced by that amount. There is also
nearly 81, 000, 900 Of land contracts in the
sinking fund, which will be increased from
time to time by further sales OF hand. When
ever Il Is deemed advisable, these contracts
might be transferred TO the permanent school
fund, and adjustment bonds to an equal
amount held by that fund redeemed and can
celed. IL NAV not be desirable 20 do this
at the present time, but / would recommend
that authority be granted the board of invest
mept to cancel the bonds now in the land or
"sinking fund" and any further bonds OF
like character It may acquire in the future.
An opportunity has been presented TO pur-
chase our state bonds, the board Of invest
ment have converted other securities and in
vested in them; the advantage OF these trans
actions being a net gain To the trust funds OF
sos, 900. Toe auditor makes some practical
suggestions relative TO the future investment
OF the trust funds OF the state, which merit
your attention.
The state has expended over half a million
dollars within the past four years in replacing
structures destroyed by fire. Comparatively
littlc insurance was upon the buildings de
stroyed, aud even that was placed without
direct authority therefor. hy the board OF
management of the institutions suit ring
the loss, the premiums being paid from their
current expense funds. In vies 81 this cI-
prricnce and az a simple business PROPOSE
ton, submit thst The policy heretofore pre-
failing OF refusing appropriations to paw pre-
miums be reconsiiercd, and the boards in
charge Of the several state Institutions, be
,utrorirrd 70 urncure reasons bic fptieuufty
against IRE uu such buildings as are exposed
to danger from that s0urcc. Tlr structures
rcSru..y ere, ted are practically ireprOof and
will not need 10 be insured.
EDUCATION.
The rspor, Of the superintendent Of pub
lie instruction. presents an exhaustive review