Willmar tribune., 1908-10-07

That the bank rightfully requires Sc
curity from the borrower and that the
depositor should demand security for
his deposits.
HARkING BACK TO 'e7.
To Candidate Jacobson's mind the
great heyday Of wise financial man.
agement, the era of ideal financiering
In connection with state institutions in
the state of Minnesota was ten to
twenty years ago, In the decade from
1887 to 1897, when the old party ma
chine was so sure of controlling the
vote of this state that divided re-
sponsibility" was not feared. Mr.. ia
cobson's Duluth statement on this
point is herewith appended in full.
ITO show the difference that exists
when one party is in full control and
when you divide responsibility let me
show you few figures. The average
increase of expenses during the last
twenty or thirty years has been 10
per cent. The increase each year has
been 10 per cent. 1 have the figures
for the appropriations for the years
1887, 1897 and 1907. In 1887 we ap-
propriated for all the institutions of
the state $1,5SO,000; in 1897 we appro-
priated $3,1S0,0OO, or an increase of 10
per cent each year. In 1907, instead
of increasing the appropriation to &c.
100000. which would be 10 per cent
increase, the appropriation was in
creased to $7,S94,000, or nearly $4,000
900 more than would have been had
the 10 per cent increase been made.
In 1887 the appropriation amounted to
about SO for each individual. In 1897
1t was decreased to $S, but in 1907, in
stead of decreasing 1t to 81, it was
increased to $13.25, or nearly twice as
much as under a Republican admin
istration."
It takes very little analysis to show
how superficial, far-fetched and ridic-
ulous the above argument is, either as
Z criticism upon the present state ad-
ministration, or as basis for fair
and Just judgment in review of the
states financial history.
To compare the decade 1SS7-97 with
that of 1897-1907 is not a comparison
Of Republican with Democratic admin
istration. The legislature which ap-
propriated the funds and the state au-
ditor and treasurer who acted as the
states financial sponsors and advisers
in the matter of disbursements were
Republican during the entire period of
twenty years. During the last decade,
1807-1907, the governor and all the ex-
ocutive departments were Republican
one-half the time, Governor Clough be-
ing in the executive chair in 1897 and
1898 and Governor Van SAINT during
1904, inclusive.
But, If the intention of Mr.. Jacobson
is to show ideal financial management
Of state institutions back in 1878 as
compared with today, it again fails.
What was the financial condition of
the state and it's institutions back in
1898? Has he forgotten? Like every
other state in this country, and espe-
cially in the West, we were just
emerging from the greatest financial
disaster in the country's history, the
panic of 1893 and the depression Of
1898. Property values everywhere,
and especially in the cities, were de-
pressed beyond precedent. The city
and village real estate bubble had
everywhere bursted and broken banks
left dopositors without savings. Tax.
able valuations were cut down, tax
levies reduced and state institutions
dared ask for nothing more than bare
existence. Is that the financial ideal
to which Mr.. Jacobson would appeal
as a basis for the support of Mime
sota's state institutions today?
The financial condition of the state
was such ten years ago, at the end of
the 1897 panic and depression, that
the state board of equalization ap-
pointed by Governor Clough was COM
/ pelled to reduce the real estate valua-
tions Of the cities of st. Paul, Mime
apolis and Duluth 26 per cent at a
single cut. The total valuation of the
state even 30 late q 1900 had not yet
recovered and was still q trihe below
that of 1890, ten years before.
The state banks Of Minnesota-to-
day over 600 in number with $90,OOO,.
900 Of resources and not failure or
loss Of a dollar to depositors in six
tears-were then less than 200 with
not one!fourth of today's resources;
and the department Of public examiner
In charge Of those banks was 80 poor
ly supported by the state and such a
dead letter and farce that over 10 per
cent Of the state banks under its su-
pervision were in q state of insol.
vency-fve of the insolvent institu.
tions still being indebted to the state
treasury for state deposits never re-
severed.
And now Mr.. Jacobson points his
finger back to that date as a proper
and fitting comparison for the people
Of Minnesota to heed in managing
their state institutions in 1908 and he
uses that comparison in preparing his