the state, photographs of farm buildings, churches, educational buildings erected by Scandinavian people, all tending to show the progress and advancement of Norway's sons in this state, and the opportunities which the state afforded for future emigrants. A fund was raised by the citizens of all nationalities and a statue of Abraham Lincoln was bought. The governor, the members of his staff, and a large committee of prominent Scandinavians accompanied the "commission" to Norway, and Governor Hanna personally, in behalf of the citizens of North Dakota, presented the statue of Abraham Lincoln to the King of Norway. The King of Norway in September, 1915, conferred upon Governor Hanna "the order of St. Olaf" of the first class. It is the highest civic decoration given by the Norwegian government.

During Governor Hanna's absence in Norway a primary election campaign for the nomination of governor and state officers was on. The governor was a candidate for re-nomination. No opposition was anticipated. His management of the fiscal affairs of the state justified the belief that he would be endorsed by all factions of his party. In the distribution of the patronage at his disposal he had recognized all factions, all his appointments were based on the ability and character of the appointee to render efficient, honest and economic service to the state, rather than as rewards for political service. There was not enough patronage to reward all the applicants, the disappointed ones and a few irreconcilable progressives initiated a campaign of opposition, notwithstanding which Hanna was re-nominated and re-elected in November, 1914. He was inaugurated for his second term in January, 1915.

FINANCES

Governor Hanna's message to the Fourteenth Legislative Assembly was devoted mainly to the finances of the state. An examination of the financial condition of the state disclosed the fact that in January, 1913, when he entered upon the office of governor, the state had an outstanding indebtedness of $500,479.99. There was cash in the state treasury to the credit of the general fund to the amount of $71,496.94. It was estimated that there would be received from uncollected taxes of the past biennial period enough to reduce this indebtedness to approximately $300,000.

The income of the state from all sources was inadequate to pay for the maintenance of the state government and meet the appropriation for state institutions and miscellaneous subjects authorized by the Legislature. The state was deriving revenue from oil inspection, to the amount of about one hundred thousand dollars a year, but the oil companies of the state instituted an action contesting the constitutionality of this law, as a revenue producer, and the state was enjoined from the collection of the fees for inspection pending the final determination of the action. If the Supreme Court should hold that the fees for oil inspection could legally be exacted to cover the cost of inspection only, and that the present law went beyond this, and was a law to raise revenue, the court would declare the law invalid, and about $100,000 due for inspection of oils would be uncollectable. There was therefore an imperative need of increased revenue to meet the current expenses. To meet this prospective deficiency the Legislature enacted an inheritance tax, and the state board of equalization in August, 1915, raised the

assessment of real and personal property as returned by the county auditors to the state auditor, nearly forty million dollars.

The constitution of the state limits the levy for all state purposes to 4 mills, but authorizes an additional levy sufficient to pay the interest on the public debt. The levy for state purposes is made by the state board of equalization, but the Legislature had made levies for specific purposes to the amount of 1.47 mills, this deducted from 4 mills left but 2.53 mills that could be levied for the general fund to conduct the business of the state. This would yield an amount entirely inadequate to pay the current expenses of the state for any one fiscal year, and it was necessary, therefore, for the Legislature to cease making special levies.

BUDGET PRESENTED

Governor Hanna had learned in Congress that it was a wise plan to have an estimate or budget of the probable expenditures of the state of the coming biennial period, as well as an estimate of the revenue. Mr. Hanna prepared such a budget and submitted it to the Legislature. It was the first time in the history of the state that an effort had been made to put the state expenses together and have a bill that in one measure covered the major expenses of the state.

BONDED INDEBTEDNESS

The bonded indebtedness of the state on January 1, 1913, was $937,300; all but $200,000 of this amount was for territorial bonds which the state assumed and agreed to pay when the Territory of Dakota was divided. In the intervening period between January 1, 1913, and January 1, 1915, bonds to the amount of $320,000 were paid from the fund and actually retired, and on July 1, 1915, an additional issue of $55,300 of bonds was paid and retired, leaving a bonded indebtedness at that date of $562,000 and reducing the actual interest account of the state by some $18,000.

BOARD OF REGENTS

The governor recommended that all of the state educational institutions be placed under the control and management of a single board to be known as the board of regents. He deemed this advisable not only from the standpoint of economy, but also as he cogently expressed it, it would "delocalize and make them state institutions." The necessary legislation creating a board of regents and repealing laws which provided separate boards or trustees of each institution was enacted. The governor was authorized and it was his duty to nominate before March 2, 1915, and by and with the consent of the Senate to appoint a board of five persons who were to meet at the seat of government on the first Tuesday in April, 1915, and organize. The governor nominated as members of the first board, Lewis F. Crawford, of Sentinel Butte, former Governor Frank White, of Valley City, Dr. J. D. Taylor, of Grand Forks, Emil Scow, of Bowman, and James A. Power, of Leonard, and they were confirmed by the Senate, but they were prevented from organizing in April, as F. B. Hellstrom invoked the provisions of the referendum law and circulated petitions to have it submitted to a vote of the people. He failed, however, to obtain the required

number of signatures, and the board organized on the 8th day of July, 1915, by the election of Lewis F. Crawford, as president, Frank White, as vice president, and Charles Brewer, as secretary. The board is a very able one, all its members are college bred men, and are well equipped to manage the fiscal affairs of the

institutions.

IMMIGRATION

Another measure that Mr. Hanna advocated and the Legislature approved was the creation of a State Board of Immigration. It is highly probable that the disastrous war in Europe will lead to an exodus of farmers from the countries involved, after its close. The state needs the farmers and artisans and an effort should be made to secure a part of this emigration. An appropriation for this purpose of $25,000, available for maintenance of the board of immigration in 1915, and $35,000 available for maintenance in 1916, was enacted and it redounds to the credit of Mr. Hanna that he persuaded the Legislature to take up this work for the first time. The organization of this board has, however, been prevented by the circulation of petitions under the referendum law. One form of the petitions is directed against the law in its entirety, another against the appropriation section. Neither petition secured the requisite number of signatures to suspend the law, but both combined did, and an action followed to compel the organization of the board on the ground that the petitions can not be combined, and therefore the law is in full force and effect.

DOURINE

By reason of the spread of a disease known as dourine among horses, many of the farmers and stockmen of the state suffered great losses. It was necessary in order to stamp out the disease to kill horses afflicted with it. The Federal Government agreed to pay one-half the appraised value of all horses killed by order of the Federal or state veterinaries, if the government of the state promised to recommend to the State Legislature to appropriate a sufficient sum to pay the other half. Governor Hanna agreed to this arrangement with the Federal Government, and upon his recommendation the Legislature appropriated enough to pay half of the amount of the claims presented for horses killed. All claims have been fully satisfied. The epidemic was checked and apparently stamped out.

LAWS

An inheritance tax was enacted during his administration, which, it was expected, would yield an amount annually equal to one-half of the loss of fees from oil inspection.

The law providing for uniform text books in public schools of the state will save a large sum annually to the patrons of the schools, as will the law reducing the legal rate of interest to 6 per cent and the contract rate to 10 per cent.

The law authorizing state banks to become members of the Federal Reserve system will also benefit the people. The state banks can always obtain a supply of money to move the crops in the fall and at better rates than formerly.

In remembrance of the fact that the "poor are always with us" the Legis