Weekly Chillicothe crisis. (Chillicothe, Livingston Co., Mo.) 1878-19??, 1879-01-16
THE TREASURY.
WHAT THE CONSTITUTION SAYS.


WHAT THE CONSTITUTION SAYS.
The constitution contains the following pro-
vision relating to the duty of the State treas.
urer:
"All moneys now or at any time hereafter
in the State treasury, belonging to the State,
shall, Immediately on receipt thereof, be de-
posted by the treasurer to the credit of the
State, for the benefit Of the funds to which
they respectively belong, in such bank or
banks as he may, from time to time, with the
approval of the Governor and attOrney-gcn-
cral, select, the said bank or banks giving Sc
curity satisfactory to the Governor and attor-
ney.general for tine safe keeping and payment
uf such deposits, when demanded by the State
treasurer on his checks; such bank to pay n
bonus for the use Of such deposits not less
than the bonus paid by other banks for simi-
lar deposits; and the saTc, together with such
interest and profits as may accrue thereon,
shall be disbursed by said trcaurer for the
purposes of the State, according to law, upon
warrants drawn by the State auditor, and not
otherwise"
From the time of the incorporation of the
Bank of the State of Missouri, and until it
ceased to exist as u State bank, it was the
financial agent of the State. The State had,
in its own right, and of trust funds stock in
that bank to nearly the amount of onc-third of
its capital stock, and by law, moneys of the
State were deposited in it. Whatever advan-
tages resulted to the bank by reason of de
posits of the moneys of the State, were shared
by the State in proportion to its stock in that
bank. When that bank ceased to exist as a
State bauk, there was no law requiring any
moneys of the State to he deposited in any
Oank nor that the State treasurer should seek
10 obtain interest on the money of the State
FOR its benefit, by depositing it with any
banking institution whatever.
THE DUTY OF THE TREASURER
with respect to the safe-kecping of the treas
ure of the State is tersely defined. The law
reads THE treasurer shall receive and keep
all the moneys of the State not expressly re-
quired by law to be received and kept by
some other person." The law did not re-
quire him to keep the money in the safe or
vault; it did not require him to deposit it
with any bank, nor with any other moncyed
institution, nor was he required to dcpOsit
that money where interest coud he obtained
for the benefit of the State nor was he pro-
hbitcd from depOsiting the money in banks.
The law left it TO the discretion and iudg-
mcnt of the treasurer alone, with no intcrfcr-
ence or supervision by any other person or
persons, to determine for himself how and
where he would keep the moneys of the
State, The auditor had no authority to di-
rect how and where the treasurer should keep
quired to render to the auditor Just and
true account of all moneys received and also
of all moneys disbursed, and stating under
each head of appropriation what disbursements
have been made and to render his accounts
to the Auditor for settlement quarterly, or
Oftener if required. But this does not give
the auditor the power to require the treasurer
TO state where he keeps the money Of the State
whether 1t is in the vault in the Capitol or
whether it is deposited with any, and if so,
with what banking institution. Nor did the
Governor ever have, nor has he now such
supervising power. The executive officers are
required to perform such duties as may be
required by law: but the fifteenth section Of
the tenth article of the constitution required
OF the State treasurer other duties than those
then prescribed by statute law. He is reUuir-
ed to deposit the funds of the State in the
bank selected by him, with the approval of the
Governor and attorncy-general and
HE IS TO REQUIRE SECURITY
satisfactory to the Governor and attorney.gen.
eral for the safe-keeping and payment of such
deposits. The attention of the last Legisla-
ture was called at an early period of the ses-
sion to the necessity of legislation to carry
into effect the provisions of the constitution.
The subject-matter was referred in the Senate
to a select committee, composed principally of
lawyers. That committee, in the month Of Jan
uary, made its report and designated many
sections ofthe constitution which, in their opin-
ION, required legislation to carry them into
effect and, amongst other sections, designated
section fifteen of article ten. The Senate
adopted that report, and thereby adopted the
opinions of that committee, and that section
OF the constitution, amongst others, was refer
red to the committee of Ways and Means, with
instructions to report suitable bills. The
opinion of the attorney-general was sought.
lie was required to inform the Senate wheth-
er, in his opinion, that section of the cOnstiiu-
tion was "self-executing.' After referring to
the various statutes defining the duty of the
treasurer, and quoting from the speeches of
the members of the constitutional convention,
wherein they held that this section would re-
quire legislation to enforce il, he gives il as
his opinion that the several statutes which he
cited relating to the duties of the State treas
urer are inconsistent with the requirements
of section fifteen, article ten, aud that it is not
self-enforcing. hut legislation is necessary to
carry it into effect.
THE MAsTIN BANK FAILED,
and its assets were placed in the hands Of its
assignee. At the date of its failure the State
Treasurer claimed to have to his credit in that
bank the sum of s506l 1880, moneys of the
State. To secure the payment of his deposits
in that bank he had taken the bond of the
bank in the sum of one million dollars with
sureties, and also some collaterals which he
had received from some of the sureties on the
bond. portion of these cOllaterals have
been surrendered to the parties who had
pledged them, and he has received in cash the
sum Of S220000 which reduces his demand
against that bank to the sum of $3.50 1880.
During the last fall proposals were again in
vited from banks for the payment of bonus
for the use of money of the State. Several
banks submitted propositions. The proposals
of the Bank of Commerce, of the city of St.
Louis for all, and of the National Exchange
Bank, of Jefferson City, for $4,000, of the
money of the State, being the best and most
advantageous offers to the State, were accepted
by the Treasurer, with the approval of myself
and the attorney-general, and both of these
banks gave security to the satisfaction of the
Treasurer, the attorney-general and myself.
Those banks have each deposited bonds Of the
United States or of this State, or BOTH with
trustees in the city of New York. to secure the
faithful performance of their part of the con-
tract. Such is their agreement, and the Treas.
urer has been notified that stocks of such de-
scription have been deposited with the trus-
tees, as was stipulated. But, it is respectfully
submitted, if banks are to hypothecatc stocks
of any description, either of the United States
or of this State, as security for the safe-kesp-
ing and pa, mcnt of the deposits of the State,
undoubtedly those banks would prefer the
sale-if sale should take place of these securi-
ties-should be made IN the city of New York,
instead of St. Louis. II the sale is TO be made
by II trustee, II is desirable that trustee should
be amenable to and within the jurisdiction
of the courts of this state, and that the State
should not be compelled to resort to the courts
Of . foreign jurisdiction for redress. If de-