The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1889-01-11
ECONOMY THE WATcHWoRD.

The Governor ADVISES the Utmcst Con-
servatism in Making Expenditures.
The governor devoted considerable
time to urging economy in the disburse-
ment of the public funds, starting with
this proposition:
The same rigid and invariable rules as
to integrity that prevail in individual
business relations should govern the con-
duct of public affairs, and the state, in
no less degree than the individual, should
demand of employees the most scrupulous
fidelity.
The speaker then continued:
While our national finances have been
so ably and economically administered
as to elicit the plaudits and command
the admiration of the world, and while,
in the main, the revenues of our states
have been so wisely disbursed as to give
no grounds for criticism, yet many in
stances might be cited where communi-
ties in our own land, and states even,
have been severely crippled, and driven
to point where integrity and credit
were all but lost through failure to
apply the simple rules of economy that
must underlie all true and permanent
prosperity. Laxity ON the part of the
law-making power in this regard is sure
to permeate the entire community, pro-
ducing illeffects that will, in the end,
not only undermine good government,
but ruin the morals of the people. No
state in the union possesses more eco
nomical, thrifty and law-abiding citi-
Zens than does Minnesota, and as their
representatives it will undoubtedly be
your desire, as it is clearly your duty, to
guard the public fund, and to see that
| no unnecessary or useless expenditure is
made of the money which, for the most
part, represents the tribute paid by hon
est toll for the common good.
| / bespeak your earnest attention to,
and most careful scrutiny of, every bill
authorizing the disbursement of money.
1t is proper that certain sums be ap-
propriated for the enlargement of state
! institutions, where there is good reason
| to believe that the increased population
and growth make such action a neces-
sity. There will likewise be the usual
demands for the proper support and
maintenance of these various institu-
tons, and to cover ordinary expenses in.
cident to the management of state affairs.
1t is not unlikely that, during your
session, bills may be introduced provid-
ing for the issue of bonds to meet some
special emergency, or to realize funds
with which to prosecute some public
enterprises that it may be deemed wise
to enter into; and, while it is your duty
to carefully consider all such measures,
yet it would seem to be prudent to ex-
ercise the greatest caution in creating
debt of any magnitude at this time, for,
while commercial, industrial and agri.
cultural business generally Is satisfac-
tory, there are indications of the de-
velopment of conditions less favorable
that might cause our liabilities to be-
come burdensome If materially in
creased.
1t is unfortunate that, in the disburse-
ments of funds called for by general and
specific appropriations, it has been nee
essary in the past to anticipate the reve-
nues accruing to the state from the col
lection of taxes. The fund arising from
our tax levy is not available to the treas
urer until some six or eight months after
the commencement of the fiscal year, at
which time the various amounts appro-
priated, and to be disbursed, are invari.
ably called for. 1t has been the custom
in the past, under authority of legislat-
i've enactment, to make good this appar-
ent or temporary deficiency in the
revenue fund by borrowing necessary
amounts, from time to time, of the sink
ing and trust funds of the state. / as
sumo that the law authorizing this prac-
tue was only intended as a temporary
measure, and that its trainers recognized
the necessity of some plan more COM
mendable from a business standpoint.
The matter is one that fs entitled to your
serious consideration, and I hope you
may be able to provide some better
method of enabling the treasurer to meet
the general and current obligations of
the state, for under the existing arrange
ment undesirable or serious compli-
cations might arise.
In the annual report of your treasurer,
attention is called to this matter, and
some remedies suggested, the more de-
sirable of which. In my Judgment. is
that you authorize the annual issue OF
what might be termed revenue bonds by
joint authority of your executive, treas
urer and auditor, under such restrictions
as you may deem proper, and as may be
required to meet the demands made
upon the treasury for payment of general
or specific obligations, when the funds
to meet the same are not available. The
plan as contemplated does not provide
for the negotiation or sale of these bonds
in the market, but that sinking and
trust funds only shall be invested therein
and they shall be made redeemable at
any time when the revenue funds in the
treasury will permit, and when, in the
judgment of the state officials that may
be selected to pass judgment on the mat
ter, the urgency that made the issuance
necessary no longer exists. In my opin-
ion these bonds should not bear interest
at the rate exceeding per cent per
annum.