Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1880-09-30

NUMBER III.
porarily Deposited In the foregoing
banks for safe keeping, and no interest
has been paid for same" .tr..
In his report to the 3Oth General As
sembly, bearing date. January II, 1879.
he says: "In this construction of tho
Constitution I was supported.by the
opinion Of the Attorney General, also
by the report Of the committee If the
18th General Assembly, appointed for
the purpose Of ascertaining what Sec
tlons Of the Constitution needed legis-
lation for their enforcement"
The Attorney General, the law offic-
er Of the State. having said that Sec.
Is, Art. 10, Of the Constitution was In
operative for the want of legislation
for its enforcement, we find him, there
fore, entering upon his duties as Treas
urer with exactly the same laws to d.
rect him as had governed his predeces-
sors. Now. what did he. do about de-
posting the funds of the State? He
deposited most Of the money with the
Bank Of st. Joseph, st. Joseph, Mo-,
the remainder with the National Bank
Of the State Of Missouri, at st. Louis.
However, before he let the Bank Of st.
Joseph have any psTt of the money, no
required 1t to give him q bond for one
million Ofdollars, to protect hin, against
loss. This, I dare say. was the first In
stance In the history of the State where
q depository Of State funds was requir-
ed to give bond for the protection OF the
peoples money. The National Bank
|of the State of Missouri-formerly the
old Bank Of the State OF Missouri, an
institution founded by the State for the
benefit Of the people Of the State, hav-
ing since Its organization been the rec
ognized depository Of State moneys,
and having a national reputation for
Its solvency-was not required to give
security for money deposited therein.
The 10Th General Assembly falling
to enact laws giving force and effect to
Sec. Is, Art. 10, of the Constitution,
and Col. Gates believing It to be the
wish Of the people that their funds
should be deposited as provided for I'm
said Article, attempted to carry Il into
effect without legislation, did on the
18th day Of May, 1877, after the adjourn
ment Of the Legislature, prepare and
'4pail n 4thaPrlpelpal hants nfsths sts6ss.
. ciFedIav'Istt1 ssiIestins thlAs. - Ahs,
keeping Of the funds Of the State. Aes
ter opening all the bids received, it was
found that the Watkins Bank, of Kan
sas City, had offered the highest rate Of
interest; thereupon the Watkins Bank
was selected as the depository OF State
moneys. This bank failed to give bond,
and the moneys remained as deposited
until June 10, 1877, when the National
Bank Of the State Of Missouri closed It's
doors with about $5lO. 900 of the States
Owing to the panic in financial cir
cles that existed at that time, Col.
Gates sought other institutions for de-
positories, depositing the State money
thereafter with the Boatmen's Saving
Bank, at st. Louis, and the Mastin
Bank, Of Kansas City. first taking q
bond from the Mastin Bank for one
millions dollars, to protect the State
against lose.
On August Sd, 1873, the Mastin Bank,
Of Kansas City, failed owing the State
$500, 900.
The Bank Of Commerce, st. Louis,
Mo-, was on the 80th of September,
1873, selected as the States depository,
where all Of the funds of the State have
been deposited, up to the present time,
except the balances remaining IN the
Mastin Bank, and the National Rank
Of the State Of Missouri.
Thus IL will he observed that, by the
'ailing of the National Bank Of the
State, and the Msstin Bank, Col. Cats
has had tied up. during his term Of
)ffice, the sum of 81 ,O16, ,0OO-$51O, 900
IN the former; and S5O6, 900 in the latter
institution. By strict industry, energy,
and at considerable expense TO Himself.
he has collected all Of the money from
the NatiOanal Bank of the State of Mis-
souri,, except 500, and has reduced tho
amount originally deposited i'm the Mas
I'm Bank to $lS3,OO AS security fr
this last amount, ne has a Judgment
against the Bank, also one against the
oondsmen on the bond the bank gave
him as security against loss. He also
lOlds. as security, $98,00 in Coupons
" the National Water Works Company
# Kansas City. These. together with
lie Judgments already obtained. will,
beyond any question, make him and
he State whole. Even should IL not
,e sufficient to protect the State against
oss, the State will have recourse upon
lin and his official bondsmen, w no are
good for at least quarter Of
million dollars. Notwithstanding
he charges Of the Republican press of
ha Efafo that tho Gtcta will A.. an -.