The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1911-02-09
COUNTY OPTION BILL
Defeated in the House on TUESDAY, bv
Vote of Sixty-Nine to Fifty
The Lee Investment Bill.
Outlook for Reapportionment Bill in
the Senate-The eastman Dis.
lance Tariff Bill, Etc.
onions Special Correspondence.

Unions Special Correspondence.
St. Paul, Feb. SIS. N. Lee of Clay
county raised rumpus in the house
the other day by moving that his bill,
which had been recommended for in
definite postponement by the commit
tee on general legislation, be printed
and placed on general orders. This
bill provides that the board of invest
ment be authorized to loan money be-
longing to the state funds at per
cent on mortgages on improved farm
property.
''This bill is branded in capital
letters" declared Mr.. Spooner, with
that emphasis which has earned for
him the title of the glad iator of the
house, Gas unconstitutional. And,
while there can be no doubt of the
truth of this, it presents a very inter-
esting question nevertheless, and one
on which there are evidently two
opinions among the members.
-. +
Both Mr.. Spooner and Mr.. Dunn
were strongly opposed to such an in
vestment of the state funds. They
were the more strongly opposed to it
because there is not nearly enough
money on hand to meet the applica-
lions already on file by school boards,
municipalities, etc., for loans of state
money, but they are opposed to the
policy anyway and consider it
vicious. Mr.. Dunn pointed out that
when money is loaned to a county,
municipality or school district all the
lands within such municipality or
district are held for the payment of
the debt. The interest becomes a tax
to be levied and collected as other
taxes are. Except in extraordinary
cases there can be no default either
of interest or principal. The COL
lection of the interest involves no ex-
qense to the state. If a similar
amount Of money were loaned on farm
mortgages the whole time of the board
of Investment and of a large corps Of
officials would be taken up in examin-
ing titles, making collections, fore
closing mortgages and so on. The
point was not directly stated in the
debate, but the clear inference from
the argument is that no security an
individual can offer can possibly be
as good as the security of county or
a township.
The argument on the other hand was
advanced that those who had the first
claim to loan of the peoples money
were the people themselves. Mr..
O'Neill of Pennington county was es-
pecially vociferous in making this
claim, and in the assertion that,
whenever the people wanted anything,
there we're always those who found
the constitution a convenient excuse
for not giving it to them. He and
others attacked the policy of the state
in investing money in the bonds of
ether states, some of which paid but 3
per cent, when the money ought to be
here to loan the people of the state
at the higher rate of interest they were
perfectly willing to pay.
!.
Mr.. Dunn defended the policy of the
investment in Virginia bonds. While
the bonds are 3 per cent bonds,
they were secured at a discount, and
mad since risen to par. The state
therefore not only secured a higher
rate of interest than per cent on
money actually invested, but would
ultimately get the difference between
what the bonds cost and their face
value. The bonds we're gilt-edged
security-as good as gold. In think
ing it not the best policy to dispose
of them, Mr.. Spooner, however, dis
agreed with Mr.. Dunn. He would
sell the bonds and use the proceeds to
loan to municipalities, to school dis
tricts, and for the digging of drainage
bitches, etc.
i {. {.
Mr.. Lennon was among those who
thought there was no better security
on earth than improved farm lands.
That perhaps is partly because be has
a crow to pick with Mr.. Spooner.
The other day Mr.. Spooner, in dis
cussing the propriety of creating the
Sri-county committee, said, in SUBJ
stance, that because the tri-county
folks washed so much of their dirty
linen in public, and because one men,
Der in particular talked so long and
so loud, the tri-county committee was
appointed SO that the house wouldn't
be bothered with tri-county troubles
and they could fight them out among