St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-12-14
MinneSota's Financial COndi-
dition Fully Detailed by
the State Treasurer.
Trying to Fix the Response
bility for the Murder of
Frank KohOut.
A Christmas Tree Respondent
With FavOrs at a Social
Gathering.
Glimpses Of Life Cleaned from
Globe Reporters Note
Books.

During fifty-nine of the sixty months
the affairs of the state were conducted
on credit svstem.' These weighty
words to the taxpayers of Minnesota
are contained in the biennial report of
State Treasurer Bobleter. The condi-
ton of the revenue fund is considered
at length by Col. BobIeter, and his re-
marks are as follows:
owing to the destruction. or partial de-
struction, by fire of the hospital for the in
sane at ST. Peter and the states prison at
saltwater a few years since necesSitating
the expenditures of large SUNS of money in
the reconstruction. of these institutions and
the large appropriations for the new hospital
for the insane at Fergus Falls, the state re-
formatory at st. Cloud, the state normal
school at Moorhead.th school for dependent
children at Owatoni a and the soldiers home
at Minnehaha, all of which have been
completed within the past two years or
are now in course of construction, the
drafts upon the state revenue fund have been
very heavy. In fact, for several years it was
only through the most economic interpreta-
ton of the laws that the expenditures have
been kept within the limits of the incomes.
AT no time within five years ending July 81,
1888, has the revenue fund been in a healthy
condition, ana for only twenty nine days of
the entire time has there been credit to
this fund, and then for not to exceed ten
days In any one fiscal year. In other words,
during fi1ty-nine of the sixty mohtns the
affairs of the state were conducted upon
credit system. One of the principal causes
for this state of affairs is the manner of
making appropriations. In nearly every in
stance they become available at the begin
ming OF The fiscal year, which means
A LARGE DEMAND FOR MONEY
at q Tune when the revenue receipts are COM
paTauVely small. and, in anticipation of the
taxes which become due and available eight
and ten months hence, tho treasurer avails
himself of the law which sanctions the Dor
rowing aud temporarily using $500. 600 Of
the sinking or trust funds for revenue pur-
poses. Even this has been found insufficient
TO meet the current demand in the revenue
fund. and at the last session of the legisla-
ture bill was passed authorizing a temper
airy loan of 100000. and appropriating
$4,000 to pay the interest thereon. Although
at the close of the present fiscal year there is
S139, 990.72 to the credit of the revenue
fund. from former experience it is safe to as
sumo that even before the. next legislature
meets all available resources will have been
exhausted. That this is deplorable state of
affairs no one will gainsay.
Three remedies are herewith respectfully
suggested to the earnest consideration of the
legislature. the adoption of any one of which
will, in my oninion, bring the desired relief
First-so time all appropriations that they
do not become available until the taxes for
the year for which the appropriations are
made become Que and available.
Second-Io amend section a of chapter l,
General Statutes of Minnesota, as amended
by chapter VI, generallaws of 1888, that the
state treasurer: may borrow, or; temporarily
use from funds having an available balance
IN the treasury, 100000, or so much
thereof as my be necessary to supply any
deficiency that may exist in the revenue
md. Should this suggestion be adopted, l
would recommend the repeal of chapter 2I5,
general laws of 1887, also the passage of
bill authorizing the payment of interest at
rate MOTTO exceed 5 per cent lper aIlllllIn. to
the several funds from which temporary
loans may be made. -, ~. =.
Thifd--Authorizing the issue of urgency
revenue bonds in the sum of S50O000, and
drawing interest at rate not to exceed five
per cent. perSannum, the governor, auditor
and treasurer, whenever in their Judgment it
becomes necessary to invest the trust funds
in these bonds and to redeem such bonds
whenever, III their Judgment such
URGENCY NO LONGER EXISTS.
by this method the revenue fund could be
Kept IN a healthy condition at all times. and
the surplus trust funds would be safely in
vested in good interest bearing bonds Should
this suggestion be adopted then in my iudg
ment all laws authorizing tempory loans
might be safely repealed.
Col. B0bieter recommends, as did his
predecessor. Hon. Charles KittleSon. in
1886, a change In the mode of payment
upon state lands. LAS the law now
stands, all payments upon school, uni
VerSlty or internal Improvement lands
shall be made to the treasurers of the
counties where such lands are situated,
but they may be made to the state
treasurer direct. This virtually APP
points two men to collect the same ac-
count, and l would recommend that the
law be so changed that all payments of
principal and interest must be made to
treasurers of the counties where such
lands are situa.ed.''
The state loans now consist of s., $685.
600 railroad adjustment, Of which the
permanent school fund holds 81, 9S1. 600.
and the permanent university fund
S2SS, 900. and the balance is held by out
side parties. During the year the gov
ernor, auditor and treasurer found it
necessary to avail themselves of the
law, which authorizes temporary loan
of 100000 for revenue purposes. An
agreement was entered into with sew
eral banks to pay warrants issued
against the revenue fund, and to re-
ceive interest on such warrants until
the treasury could redeem the same at
q rate of per cent. All intereSt-bear-
ing warrants were redeemed previous
to the close of the fiscal year.
The income from interest on deposits
during the last fiscal year was S13, 209.O1.
Of the S25, 117-60 advanced to bail suf-
ferers, in compliance with an act Of the
last Legislature, S6,275.16 has been re-
paid.