cient, taking all the contracts together, to more than reimburse the state for all the interest it will pay on the warrants issued since the regular session of the last general assembly. I still adhere to the opinion expressed by me in a former message that the manner of evidencing interest-bearing indebtedness through the indorsement of warrants with the date of presentation, from which date they draw interest, is open to serious objection, particularly when the amount of debt of that character becomes large. To incur indebtedness is not necessarily unwise. There are times when it is real economy to do so, both in private business and in that pertaining to the public. This is especially true when the time is opportune for making public improvements that are needed or soon will be. But, in my judgment, the debt should be fully contemplated as such when it is to be incurred, and ample provision made for meeting the same. To trust to receipts to meet expenditures, when it is known they will be inadequate, is not good business policy. Yet that is what is done when hundreds of thousands of dollars of warrants are indorsed for want of funds, as has been the case since the last session of the general assembly, and as had been done repeatedly in former years. I concur in the spirit of the suggestion of the treasurer of state, that he be empowered to dispose of the indorsed warrants, although I would recommend as preferable action that the treasurer be authorized, when it becomes apparent that the moneys in the treasury are about to be exhausted, to sell the state's obligations, whether in the shape of interest-bearing warrants, such as were issued when the war debt was extinguished in 1881, or of short time revenue bonds, for the purpose of temporarily replenishing the treasury. Such a system would have an advantage over the present plan of contracting indebtedness, because the amount of it and the interest to be paid, with the time of payment, would be fixed and known, and because also the obligations would draw a lower rate of interest either directly or through the premium received from the sale of the obligations. Most of the time the last two years the indorsed warrants of the state were worth more than par, with all their uncertainty as to time of payment. Obliga tions of a more definite character fixing the date for payment ought to be worth fully as much even at a lower rate of inter. est. A premium of 2 per cent on the warrants indorsed during the past year, the treasurer states, would have amounted to $25 306.46, which is more than was paid in interest during the calendar year 1897; and the same officer reports assurances that 2 per cent could have been had on warrants of large amounts running for a certain time. Failing the adoption of this suggestion, I would recommend, as suggested by the treasurer, that the warrants as to payment be classified. This could be done by providing the funds in the treasury shall first be used for meeting the regular expenses of the state government as provided by law, especially giving them precedence over warrants for public improvements. I would particularly invite your attention to the remarks of the treasurer of state in respect of the collateral inheritance tax. Better provision should be made for the collection of this tax. It would perhaps be well to give the counties an interest in it and make it the duty of some county officer to attend to the same locally, as the state treasurer is required to do at large. The Twenty-sixth General Assembly at its regular session provided for the collection of a special tax to be paid at the organization of a corporation, according to the amount of capital stock authorized. The act further provided that existing corporations increasing the amount of their authorized capital should pay a similar tax The new code (section 1610) through the insertion of a single word seems materially to alter the latter clause. The section, after re-enacting the law in reference to companies newly organized, further provides that "should any corporation thereafter increase its capital stock it shall pay a fee to the secretary of state," etc. This language seems to limit the payment of the fee for an increase in the amount of the capital stock to corporations which pay such fee at organization, and to exempt the older companies from the exaction. I cannot think that such was intended, and would suggest that the section be amended to agree with the statute it was supposed to re enact. INTEREST ON PUBLIC FUNDS. As another source of revenue, I may call your attention to the subject, already agitated, of interest on the public funds. It is regarded by successful men of business, firms and corporations, as good financiering to utilize all available assets, as far as may be reasonably done, for increasing revenues, and I am unable to see why such rule may not be applied to the funds belonging to the state that are not immediately needed, and a reasonable rate of interest secured by the state rather than by individuals and corporations from that source. This system should also apply to the counties, school districts and municipalities of the state. It would undoubtedly operate sensibly to increase the receipts of the state and local treasuries. I recommend that steps be taken to bring about such a system. THE LIBRARY.. The period has witnessed great improvement in the state library. It has been extensively rearranged; and a large additional space utilized that was previously unoccupied. While the work of the department was greatly increased by reason of the unusually large number of books added to the collection, the largest accession there has yet been in any one term, it has been made especially more onerous because of the new and peculiar duties contemplated in the system of traveling libraries provided by the Twenty-sixth General Assembly. Fifty such libraries, containing in all 2,500 volumes, are traveling to the various points in the state selected, being nearly altogether places that are otherwise unsupplied with such facilities. The additions during the term amounted to 8,299 volumes, including 3,015 by donation and exchange. Procuring the latter occasioned an extensive correspondence, resulting in adding an exceptionally large number of volumes to the collection without cost to the state. Notwithstanding the large amount of work to be done by the force in the library, that force was, in the interest of economy, cut down by the last general assembly until it was made less than was formerly allowed for a much lighter volume of work. THE SCHOOLS. The retiring superintendent of public instruction closes his long and very useful incumbency of that high office with a report of great ability, which I deem especially worthy the attention of the general assembly in all its recommendations. The enumeration of persons between the ages of 5 and 21 is 727,694, an increase of 14,553 since the last biennial report. The enrollment is 546,836, a gain of 13,012; and the average attendance reported is 347,620. The number of schoolhouses is 13,744, of which 241 were built during the past year. The value of the schoolhouses is $16,355,842, or $710,299 more than in 1895. During the past decade which began with the retiring superintendent's first accession to the office, while the number of schoolhouses was enlarged by only 992, or about 8 per cent, their value has been augmented by $4,348,502, or about 35 per cent, indicating that the primary demand for schoolhouses is pretty well supplied, and that attention is now being paid to making them better, more comfortable and more enduring. Another evidence of advancement is seen in the increased proportion of those entitled to school privileges who avail themselves of them. During the decade the enrollment became larger by 49,667, and the average attendance by 52,683. During the same time the number within the school ages increased 15 per cent, while those in daily average attendance increased 17 per cent. The amount paid teachers last year was $5,264,354, an increase of about 28 per cent in the decade, while the cost of tuition has diminished during that time from $2.04 per month per pupil, to $1.87. The number of inexperienced teachers is yet very large. Of 24,445 certificates issued during last year, more than 30 per cent were to persons having had less than one year's experience, and nearly 15 per cent to those with no previous experience. The recent changes in the school laws, notably those providing for furnishing text-books free, and allowing boards in the rural districts to furnish transportation to pupils even beyond the lines of the districts, are both calculated, in my judgment, to enlarge the usefulness of the schools. The latter provision when it shall be found, as I believe it will be, cheaper pecuniarily and better otherwise to provide such transportation than to sustain weak district organizations, ought to have a tendency to diminish the number of such organizations, a consummation long felt to be desirable. The considerable extension of the powers of the district meetings with the corresponding limitation of those of the school board is another good feature of the new school laws. It seems indeed that the entire school law may remain unchanged for years to come without detriment. STATE INSTITUTIONS. As the state institutions have been visited during the last few months by an intelligent committee appointed from its members by the last general assembly, which committee will doubtless soon report to the legislature, I do not deem it proper to make a lengthy review of the reports of the several state institutions, but will confine myself to brief mention of matters concerning them which in my judgment should have attention. THE UNIVERSITY. The Twenty-sixth General Assembly directed the levy for the succeeding five years of a special tax of one-tenth of a mill per annum and placed the same at the disposal of the board of regents. That body devoted the proceeds of the first year's tax to the erection and equipment of a hospital for the medical department and the construction of a heating plant for the use of the new building and some others. The erection of a collegiate building is to follow, an edifice such as will provide for an increased attendance of 30 or 40 per cent, which is no greater rate of gain than that of the past four years. The attendance at the institution during the period shows an increase of 17 per cent over the preceding one, while the number of students has doubled in the last eight years, and every indication points to a yet larger proportionate gain of attendance in the coming years. This institution was the victim of fire last June, which practically destroyed the general library, wrecked the building that contained it, and did much damage to the physical laboratory. The loss is estimated at over $82,000. The income of the university for its support for the period amounted to $264,525.85, of which $113,775.83 was derived from the students in the professional departments for tuition and fees, and $32,249.97 from investments. The remainder was drawn from the state treasury. The expenditures for the same period amounted to $270,262.16, of which $104,091.22 was the cost of the collegiate department. This institution has steadily grown in the confidence and regard of the people until it has become one of the leading seats of learning in the west. While I trust that no argument is needed to convince the general assembly of the desirability of strengthening the university in its various departments, yet I think it may be proper thus to remind the legislative body of what I deem the rightful demand of this summit of our common school system on the liberality of the state. The board of regents asks for an allowance of $39,100 for repairing damages by the fire, repair and incidental fund, law library and various laboratories, and to permit of an exhibit at the Trans-Mississippi Exposition; also $75,000 equally divided |