The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1888-09-21
A SENSATION EXPLODED.
State Treasurer Bobleter Pune
lures a GIobe-Democratic Lie.

The st. Paul Globe and other whipper-
snapper journals of smaller calibre
have recently been falslfying the fnan-
cial condition of the state and calling at
tention in big head lines to the alleged
crookedness and Encouragement in the
Republican administration of state af-
fairs. With intelligent people the
Globes fakes have little effect, but there
may be some ill-informed person who
put faith in them. AT least the lies will
be stuck to and reiterated by the small
sheets until the public begins to believe
them. Therefore, it may be well to put
in few words of explanation.
The Globe made much ado about, and
pointed with suspicion to, the fact that
the state deposits money in the banks
at per cent. interest, then turns about
and borrows it back at per cent. The
effect of such statement as this must
depend for its result upon the standard
of reasonableness and intelligence of the
reader. The facts are that the revenue
fund comes in nearly in lump, and has
to be deposited in different banks for
safe keeping. The banks care very lit
tie for this deposit, but they are willing
to pay 3per cent. for it, which is the
rate they pay Eastern capitalists. No
money is borrowed of the banks at
per cent. or any other rate while this
lasts, or rather while any of it remains,
which may be used by the revenue
fund. But when that portion of the
state money which is available for that
particular purpose has been exhausted,
and after the treasurer has overdrawn
the revenue account to the extent of
500, 900, which he has legal right to do,
then the state has to borrow money to
tide over to the beginning of the next
fiscal year. The strange feature of a
state borrowing money from bank
when it has money on deposit in the
bank will vanish when you understand,
as every intelligent person does, that
the states money is divided up into diff
ferent funds; and that the excess of one
fund can not be transferred to or pay
the debts of another fund.
But it remained for State Treasurer
Bobleter to "give away" the falsely sus-
tanned position upon which the Globes
startling lies rest. In an interview yes
terday he said:
The Democrats must be in desperate straits
when their organ finds 1t necessary to devote
from one to two columns daily to advertise
the fact that the revenue fund of the state is
at present overdrawn, and that this condition
of affairs is all owing TO the mismanaRement
of the state finances.
The Globe is very careful to say nothing of
the fact that the fiscal year begins Aug
that the appropriations for the current year
become available at the beginning Of the fiscal
year; that the heaviest payments must be
made in the first few months OF the year, and
that the revenues derived from taxes are not
paid into the treasury until the last few
months In the fiscal year. To illustrate: Dur
ing the first seventeen days of the current
month the revenue warrants presented for
payment at the state treasurer's Office amount
cd TO S110, 30, while the receipts 10 the
credit OF this fund for the same time have
been 20 (sfx copies special laws sold.l Does
anyone wonder why the treasurer finds IL
necessary TO arrange with the banks with
which he does business for q temporary loan,
authorized by act OF the legislature, TO bridge
over until the taxes for the current year are
paid in2 The charge that the money is scat
tered all over the state inthe interest Of any