St. Paul daily globe., 1889-03-07
The Governor Sends a Sharp
Message On Economy
to the House.
DucatS and Sinners Are Very
Scarce in the State
Treasury.
He Recommends an Increase
in the States Bonded
Indebtedness
And a TWo-Tenths of a Mill
Increase in Tax
Rates.

That Gov. Merriam has conscien-
tiOusly and thoroughly read the GLOBE
for the last twelve months there can be
no doubt, after the presentation of his
message OH economy submitted to the
house last night. The document pub
liShed in full below is moderate in tone,
but hewS close to the line in warning
the legislature to scan state institution
appropriations and to watch the
finances of the state with a
keen eye. The governor can
see no way out of the financial muddle
which past Republican legislatures
have created, except by the addition of
100000 to the states bonded indebted
ness and an increase in the tax levy
two propositions not favorably looked
upon by the farmers. Of this S40O, 900
increase i'll bonded Indebtedness, $780,
900 is to meet deficiency created by
the extravaganza of the legislature of
1887, and the remaining $3.50, 900 is to COM
plete state institutions not needed now
and which can wait two years-the ST.
Cloud refOrmatOry there are 200 empty
cells at Stillwater) and the Fergus Falls
insane asylum (the state has two now.
On the whole, the message is some
thing novel, and may be taken as the
consensus of opinion of the house and
senate committees on ways and means
and the governor. The message reads
as follows:
Executive Office, st. Paul. March 5.
1SS9.-Gentlemen of the House of Rep
reSentatiYeS: l respectfully desire to
call the attention of the gentlemen of
the house to the necessity of a rigid
scrutiny of all bills appropriatirg
money, and, in view of the condition of
the state treasury, Il careful pruning Of
all measures of financial character to a
point that will admit of their beng
provided for by such sums of money as
can be reasonably asked for at this
time.
In this regard, the first matter entitled
to your consideration. in my Judgment,
is the deficiency in the revenue fund of
about S250,000, which will exist at the
close of the fiscal year, July 81 ensuing,
as shown by statement of the treasurer
hereto attached, and marked Exhibit A.
This deficiency arises from appropria-
tiOnS made by the Legislature in the
year 1887 for the purpose of enlarging
state institutions and for other demands
of miscellaneous character. and rep
reSentS the excess of such appropria-
tions over and above the funds pro-
Vided to meet them.
To provide for this deficiency sug-
geSt that bonds of the state be issued as
soon as practicable to the amount of
$3.50, 200, bearing interest at rate of 4
per cent per annum, and that the pro-
ceedS of the SaleOf such bonds be turned
over to the state treasurer for the credit
of the revenue fund. These bonds NAV
be absorbed at their par valne by the
permanent school fund of the state,
which funds under authority of legiSla-
tive enactment may be temporarily in
vested therein.
For the purpose of finishing the
asylum at Fergus Falls. the state re-
formatory at st. Cloud, and for making
certain necessary improvements at
other charitable and penal institutions
of the state, about S150,000 will be re-
quired; and as this sum would, in the
main, be absorbed in continuing and
completing work considered and au-
thorized by the last Legislature, | would
suggest such amount also be made
available by the issue and sale of bonds
of the same tenor and in manner as pre-
YiOuSly indicated.
In accordance with the provisions of
section of article of our constitution
it is necessary to levy a tax of one
tenth mill each year to retire any bonds
issued by the state. Hence, if action is
taken i'll accordance with the above
suggestions it will result in increasing
our annual tax levy from one and five
tenthS mills to one and SiXth-tenths
mills.
4 carefully prepared estimate made
by the state auditor, based upon a one
and five-tenthS mills tax levy, indicates
the source and amount of the revenues
of the state for the two fiscal years,
ending July 81. 1891, and from it YOU
can ascertain the amount necessary to
be appropriated for the support and
maintenance of the various public in
stitutiOnS and departments of state. If
the estimates are correct there will be
a surplus in the treasury on July 81,
1891, of $3.50.
The Sl50,0O0 made available for i'm
provements outlined above by sale of
the Sl50,000 in bonds. and to $3.50. 900 es-
timated surplus July 81, 1891, will pro-
vide 100000 for extraordinary eXpendi-
lures.
While in my Judgment it is not ad-
visable to materially increase the tax
levy at this time, it would not be i'm
proper, in view of the large demands
made upon you, to augment the above
sum of 100000 for extraordinary eX-
penseS by 100000, which may be pro-
duced by adding to the tax levy two
tenthS of mill for the years 1890 and
1891.
The plan herewith submitted for your
consideration would thus make availa-
BILE 100000 per year. or S6OO,OOO for the
two fiscal years ending July 81, 1891, for
purposes other than the running eX-
penseS of the various departments of
the state government, as shown in the
following recapitulatiOn:
From sale of S150,000 bonds to
provide funds for Fergus Falls
asylum, st. Cloud reformatory and
for other institution improve
ments .....-................. .Sl5o, 900
Increase i'll tax levy two-tenths of a
mile In addition to the one-tenth
OF mill necessary to retire bonds
for years 1890 and 1891 -.... -. 200, 900
Estimated treasury surplus July 81,
1991............. -. .... 49,. 100000
1oCal' '..,.' ............ $500, 000
In my Judgment it would not be ad-
visable to make the above amount avail
able before April l, 1890, and April l.,
1891, in equal amounts or in such pro-
portion as may be deemed best.
In order to keep the extraordinary ap-
preparations within this limit of 5000. 900
it will be necessary to curtail very ma
terially the amount of money required
by the several state institutions as esti-
mated by the boards of control.
These estimates and others of general
and specific character aggregate the
sum of Sl,S50,00O, an amount three
times as large as that produced in man
ner as herein suggested. In many
instances the sums asked for seem to