The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-26
INTEREST RATE CUT
STATE WILL, ONLY PAY FOIrt, DIED
CENT ON CERTIFICATES
HEREAFTER
HOUSE HAD A WARM DEBATE
There Was Considerable Division
of Opinion, but the Measure Easi-
~ Commanded Majority of
Votes and to Spare-The One Bill
Took Up Practically the Entire
Days Session.

The consideration Of discussion on
and passage of H. F. No 81, by Mr.
Peterson Rep), of Renville, occupied
the time of the house during its session
yesterday.
The measure reduces the interest on
the unpaid principal of all state lands
from o TO per cent from and after
June l. 1899, and extends the time of
payment on lands purchased from thir-
ty to fifty years.
The bill had been made a special or
der for 1870 o'clock, having been re-
ported back from the committe on pub
lie lands. with the recommendation
that it pass, and after a deal of de-
bate in the committee of the whole on
Saturday, was made a special order
for yesterday. In order to secure in
formation touching on the investments
of the school fund, which is derived
by the payment of principal and inter
est from the sale of state lands. Mr..
Lynds (Rep). of Carlton, secured the
passage of a resolution on Monday
asking the state auditor for report.
The information requested was wheth-
er any special effort had been made to
loan the funds to the various munic-
lpal organizations under the law, and
If there were existing laws which pre-
vented the soliciting of such loans In
competition with other sources.
The state auditor, in a communica-
ton answering the request, stated that
no special effort had been made to loan
the funds by his office, and that there
was no law which prevented the So
Letting of loans. The auditor then
proceeded to boost" for the bill of Mr..
Peterson in a lengthy communication
as follows:
The permanent school and university funds
are derived from the sale of state lands, pine
timber and mineral. No more than 100 0OO
acres can be sold in any one year. In this
connection I wish to say that H. F. No. Sc,
which is now under consideration by your
honorable body, has the hearty approval of
this office. We consider it q just and meri-
torious measure. Two years ago the Iegis-
lature saw fit to reduce the rate of Interest
on loans from to per cent.
The state is glad to invest its funds in the
bonds of other states at 8 per cent The
law provides that the state treasurer can de-
per cent. The state loans to school districts.
towns. villages. cities and counties at 4 per
cent
Why discriminate against the holder OF a
state land certificate and charge him per
cent. Talk about class legislation It seems
to NE that this is class legislation with
vengeance. Why permit an aggregation of
money at per cent and then charge one of
these selfsarie farmers per cent on his land
certificate? Why favor body Of farmers COL
lectively. and discriminate against them as
individuals? Nine-tenths of the holders of
state land certificates are farmers In the
early days of statehood large quantities of
school lands were purchased by speculators
but today these lands are mainly In the
hands of actual farmers. As a measure of
Justice. tie bill should become a law On its
merits 1t should pass. A lower rate of in
terest will enable the holders of state land
certificates to pay their interest more prompt
ly. and extending the time Of payment will Sc
cure fair rate Of interest for the permanent
school and permanent university funds for
longer period And the state has the best Sc
curfty in the world-the land itself
No member should take it Tor granted that