Minnesota, the North Star StateFolwell, William Watts
History
Minnesota, the North Star State
Folwell, William Watts
Minnesota -- History
The legislature of 1860 in a spasm of retrenchment fixed the salary of
the state treasurer at $1000 a year, and it remained at that figure for
a quarter of a century. The business and responsibility increased from
year to year, but no addition was made to compensation. In the absence
of express prohibitory legislation a custom grew up of depositing the
state’s money in banks which paid an interest to the treasurer, the
bank proprietors becoming his sureties. No mischief resulted from this
arrangement. But in one case, at least, that of Emil Munch, a treasurer
did not content himself with merely depositing in banks, but in private
enterprises employed the state’s money to a large amount. By
contrivance or good fortune his brother-in-law, William Seeger,
succeeded him in office, rather than some stranger. This relative
obligingly took the promissory notes of his predecessor and other
“paper” and receipted for them as cash.
The treasurer’s report for 1872 showed a balance of cash in the
treasury of $243,000. A newspaper editor in St. Paul, with no other
motive than, in his own phrase, “to raise hell and sell papers,” gave
expression to the open secret that much of this money was not in fact
in the treasury, as reported, and challenged the Republican legislature
of 1873 to investigate the Republican treasurer. Nothing less could in
decency be done, and the investigation revealed a shortage of $180,000.
The house of representatives passed a resolution of censure and awaited
the resignation of the unlucky official. No resignation appearing, the
same body on March 4 made an “imperative demand” for one. Mr. Seeger
replied in writing, admitting that he had found a deficit on taking
office, but declaring that every dollar had been made good and the
state would suffer no loss. His bondsmen had raised and paid in the
money. The house, however, could not content itself with restitution
alone, and submitted articles of impeachment to the senate. After the
trial had begun, Mr. Seeger offered his resignation, which was accepted
by Governor Austin. The impeachment proceedings, however, went on and
resulted in a conviction. The legislature took the obvious lesson to
heart, and raised the salary of the state treasurer to $4000.
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Public-domain text, read in full here on John Shaqi.
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