THE MINNESOTA HISTORICAL SOCIETY.

This society, as I have said before in speaking of the work of the first territorial legislature, was organized by that body in 1849, and has been of incalculable value to the state. The officers of the society are a president, two vice presidents, a treasurer and a secretary, and it is governed by an executive council of thirty-six members, which embraces the governor, lieutenant governor, secretary, auditor, treasurer of state and attorney general as ex-officio members. The state makes an annual appropriation in aid of the society. The executive council meets once a month for the transaction of its business, at which meetings, and at its annual meetings, interesting papers and essays are delivered on historical subjects, which are preserved, and with other matter are published in handsomely bound volumes when sufficient material is acc.u.mulated.

The society, in the manner prescribed in its by-laws, may establish the following separate departments:

Department of Annals and General History of Minnesota.

Department of Geology of Minnesota.

Department of Zoology of Minnesota.

Department of Botany of Minnesota.

Department of Meteorology of Minnesota.

Department of Northwestern Geography and Chartology.

Department of American History.

Department of Oriental History.

Department of European History.

Department of Genealogy and Heraldry.

Department of Ethnology and Anthropology.

It has corresponding members all over the world, and official connections with nearly all the historical and learned societies of Europe and America, with which it interchanges publications. It has a membership of 142 life and 37 annual members. It may receive donations from any source.

Its property, real and personal, is exempt from taxation of any kind. It has acc.u.mulated a splendid library of about 63,000 volumes of all kinds of historical, genealogical, scientific and general knowledge, all of which are open and free to the public. It also has a gallery of pictures of historical scenes in Minnesota, and portraits of men and women who have been prominent in, or who have contributed to, the history or growth of the state, together with an extensive museum of Indian and other curiosities having some relation to Minnesota. One of its most valuable attractions is a newspaper department, in which are complete files of all newspapers which have been and are published in the state, except a very few unimportant ones. The number of our state papers, daily, weekly and monthly, received at the beginning of the year 1899 is 421. These papers are all bound in substantial volumes, for preservation for the use of future generations. On Sept. 1, 1899, the society had on the shelves of its fire-proof vault 4,250 of these volumes. Its rooms are in the capitol at St. Paul, and are entirely inadequate for its accommodation, but ample s.p.a.ce has been allowed it in the new capitol now in the course of construction.

STATE INSt.i.tUTIONS MISCELLANEOUS IN THEIR CHARACTER.

Besides the general state boards and a.s.sociations having special reference to the leading products of the state, and those of a reformatory and educational character, there are many others, regulating business of various kinds among the inhabitants, all of which are important in their special spheres, but to name them is all I can say about them in my limited s.p.a.ce. Their number and the subjects which they regulate shows the care with which the state watches over the welfare of its citizens. I present the following catalogue of the state departments:

The Insurance Commission.

The Public Examiner.

The Dairy Food Commission.

The Bureau of Labor.

The Board of Railroad and Warehouse Commissioners.

The Board of Game and Fish Commissioners.

The State Law Library.

The State Department of Oil Inspection.

The State Horticultural Society.

The State Forestry a.s.sociation.

The Minnesota Dairymen"s a.s.sociation.

The State b.u.t.ter and Cheese Makers" a.s.sociation.

The State Farmers" Inst.i.tutes.

The Red River Valley Drainage Commission.

The State Drainage Commission.

The Commission of Statistics.

The State Board of Health and Vital Statistics.

The State Board of Medical Examiners.

The State Board of Pharmacy.

The State Board of Dental Examiners.

The State Board of Examiners in Law.

The Bureau of Public Printing.

The Minnesota Society for the Prevention of Cruelty.

The Geological and Natural History Survey.

The State Board of Equalization.

Surveyors of Logs and Lumber.

The Board of Pardons.

The State Board of Arbitration and Conciliation.

The State Board of Investment.

The State Board of Examiners of Barbers.

The State Board of Examiners of Practical Plumbing.

The Horsesh.o.e.rs" Board of Examiners.

The Inspection of Steam Boilers.

It is difficult to conceive of any other subject over which the state could a.s.sume jurisdiction, and the great number which are embraced already within its supervision would lead one who is not in touch with our state administration to believe that state paternalism dominated the business industries of the people; but nothing is further from the truth, and no state in the Union is freer from governmental interference in the ordinary channels of industry than Minnesota.

STATE FINANCES.

Since the settlement of the debt created by the old railroad bonds that I have heretofore mentioned, the finances of the state have always been in excellent condition. When the receipts of an individual or a state exceed expenditures the situation is both satisfactory and safe. At the last report, up to July 31, 1898, the receipts of the state from all sources were $5,429,240.32, and the expenditures were $5,208,942.05, leaving a balance on the right side of the ledger of $220,298.27. To the receipts must be added the balance in the treasury at the beginning of the year of $2,054,314.26, which left in the treasury on July 31, 1898, the large sum of $2,184,612.53.

The original indebtedness arising from the adjustment of the state railroad bonds was $1,659,000; other bonds, $300,000.00. This indebtedness has been reduced by payments to the sum of $1,475,647.22, on July 31, 1898, the date of the last report. If this debt had matured, it could at once be paid by the funds on hand, leaving the state entirely free from all indebtedness.

The taxable property of the state by last a.s.sessment, in 1897, including real and personal property, was $570,598,813.

THE MONETARY AND BUSINESS FLURRY OF 1873 AND PANIC OF 1893.

It has been customary in the United States to expect a disturbance in monetary and business affairs about once in every twenty years, and the expectation has not been disappointed since the panic of 1837. I have described the effect of the panic of 1857 on the Territory and State of Minnesota, and the difficulties of recuperating from the shock. The next similar event was not due until 1877, but there is always some special disaster to precipitate such occurrences. In 1857 it was the failure of the Ohio Life Insurance and Trust Company, and in 1873 it was the failure of Jay Cooke & Co., of Philadelphia. This house had been very prominent in placing the bonds of the Northern Pacific Railroad Company, and in the construction of the road, and was relied upon by many cla.s.ses of people to invest their money for them, and when their failure was announced, its effect in the East was disastrous, but here in Minnesota it only affected us in a secondary or indirect way, in stopping railroad building and creating general alarm in business circles. We had been diligently at work for sixteen years, endeavoring to recuperate from the disaster of 1857, and had to a great extent succeeded. Real estate had partially revived, but had not reached the boom feature, and the state was on a sound financial basis. Fortunately we had not recovered sufficiently to become investors in railroad securities to any great extent, and land speculation had not reached its usual twenty years"

mark. We had, also, on hand a local affliction, in the presence of gra.s.shoppers, so that, although it disturbed business generally, it did not succeed in producing bankruptcy, and we soon shook it off.

This periodical financial disturbance has been attributed to various causes. From the regularity of its appearance, it must be the result of some impelling force of a generally similar character. My opinion is, that the period of twenty years being the average time of man"s active business life, the actors of the second period have not the benefit of the experience gained by those of the previous one, and they repeat the same errors that produced the former disasters; but be that as it may, when the period extending from 1873 to 1893 had pa.s.sed, the same result had occurred, and with quite as much force as any of its predecessors.

Land speculation had reached the point of absolute insanity. Everybody thought he could become rich if he only bought. Values, already ridiculously expanded, continued to increase with every sale. Anyone who had money enough to pay down a small amount as earnest and intelligence enough to sign a note and mortgage for the balance of the purchase price became purchasers to the limit of their credit. When a party whose credit was questioned needed an indorser, he found many requiring the same a.s.sistance who were ready to swap indors.e.m.e.nts with him. Everyone became deeply in debt. The country was flooded with paper, which was secured on the impossibility of values continuing. The banks became loaded with alleged securities, and when the bubble was strained to the bursting point, and some one of supposed financial soundness was compelled to succ.u.mb to the pressure, the veil was lifted, which opened the eyes of the community and produced a rush for safety, which induced, and was necessarily followed, by a general collapse. In 1888 and 1889 banks suspended, money disappeared, and in 1893, in the expressive language of the West, everybody who was in debt, and all stockholders and depositors in defunct banks "went broke." Had the cities of St. Paul and Minneapolis been captured by an enemy and a ransom of ten million dollars been demanded from each, paid and carried away, the consequences upon business would not have been worse. It was much the same in all the large cities of the state, as land speculation was more active there than in the rural districts, and no matter what may happen, some value always remains to farm lands, while under such a collapse as that of 1893 the greater part of city property becomes utterly valueless for the present, and much of it forever.

There was, however, a great difference between the consequences of 1893 and the previous disasters of 1857 and 1873. Although the disturbance was great, we were better prepared to meet it. Population had increased immensely. The area of civilization and production had kept pace with immigration. Manufactures of many kinds had been introduced, and although we were seriously wounded, our hopes of recovery had solid grounds to rest upon, and we were not dismayed. The only remedy in such cases--industry and economy--was applied, through necessity if not from choice, and recovery has been slowly progressing up to the present time (1900), when we may be cla.s.sed as convalescent.

Will this experience serve to prevent a recurrence of the follies of the past? Most a.s.suredly not. Those who have reaped wisdom will have surrendered the speculative arena to others before the financial cycle rolls around, and history will repeat itself, notwithstanding the state never had a better future outlook than at present. It does not follow that the panic due about 1913 will be caused by over speculation in real estate. It is more likely to be produced by the excessive and fraudulent capitalization of all sorts of corporations, called trusts, which will, of course, succ.u.mb to the first serious blow.

With the exception of the events I have narrated, including the financial troubles of 1873 and 1893, nothing of special importance to the state has happened, except a few occurrences of minor moment.