Minnesota, the North Star StateFolwell, William Watts
History
Minnesota, the North Star State
Folwell, William Watts
Minnesota -- History
So soon as Governor Medary had approved the bill for the election of
senators he took his departure and devolved the executive upon Charles
L. Chase, the secretary of the territory. Till the middle of winter the
legislative bodies of 1857-58 were so uncertain about their legal
status that they were chary of multiplying statutes. Then there was a
change of opinion, and the members were encouraged to believe
themselves true state legislators. Their confidence so stiffened that
on the 1st of March they voted to submit to the electors an amendment
to the constitution authorizing the state officers-elect to qualify on
May 1, whether Congress should have admitted the state or not; and
appointed April 15 proximo as the day for the election. It is probably
true that railroad interests had to do with this change of heart. As
already related, the four companies to which the great congressional
land grant had been made over by the previous legislature had not been
able to borrow a dollar by hypothecation of their inchoate properties.
There were examples of state assistance in railroad building under like
circumstances, by way of lending state credit. The Minnesota companies
now asked the legislature for like aid. That body was willing enough,
but there stood in the constitution adopted, but yet awaiting approval
by Congress, a section forbidding in terms the loan of the credit of
the state in aid of any individual, association, or corporation. But
the constitution was still in the green tree; why not amend it for so
worthy a purpose? Accordingly, the accommodating houses presently
submitted a second amendment to the electors, to be voted on at the
same time as the former. This amendment added to the section forbidding
the loan of the state’s credit an exception, allowing such loan for the
purpose of facilitating railroad construction, to the amount of five
million dollars. Such was the beginning of the “five million loan”
transaction, which was not closed till near the end of the century, and
then in a manner not clearly honorable to the state. The two amendments
were passed upon by the electors on the day appointed (April 15). That
authorizing the state officers elect to enter upon their duties on May
1 received an “imposing majority,” the figures of which have not been
found. The officers elect, however, wisely took no advantage of this
provision, but awaited the admission of the state. The “five million
loan” amendment was carried by the overwhelming majority of 25,023 to
6733. It was only, as alleged, a “loan of credit.” In no conceivable
event, the people were assured, could they be taxed to pay in cash the
debt nominated in the bonds to be issued.
Public-domain text, read in full here on John Shaqi.
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