The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1883-10-05

The platform of the Pennsylvania
Democratic State Convention for 1888
declares that PUBLIC MONEYS ARE
FOR PUBLIC USES.
| And further that "The long con
tinued abuses and spoliation of the
State Treasury and defiance of law by
its management make essential radi.
cal reform so that large funds shall not
be accumulated by the taxation of the
people and distributed among favored
repositories of the State officials, but
that all surplus in excess of the imme-
date necessities of the State Govern
ment shall be invested in interest bear
ing State or Federal securities until it
may be applied to the extinguishment
of the State debt"
The special significance and applca-
tion of this declaration will be more
fully understood upon a short review
of the Humes law enacted by the Le-
gisature at the regular session of 1888,
and signed by Gov Pattison.
Prior to the passage of that law the
speculation in state funds had been for
many years the subject of noisome
scandal in this commonwealth and the
management of the treasury had been
the objective point of the politicians
who wanted to use its moneys for them
selves and their friends by having them
deposited in banks where they would
do them most good. The entire f.
nancial system Of the State was 50
manipulated as to accumulate enor-
nous balances of from two to five mil.
lion dollars in the State Treasury,
which those who were in control would
in turn loan out, without security, to the
hanks designated by the politicians,
who would In turn obtain its use or in
terest for it from the institutions which
they thus assisted to the peoples mon
ey.
The Humes bill was as follows, and
it was intended, as its provisions clear
ly show, to have all moneys that were
lying idle in the favored banks invest
ed in interest bearing securities, so that
the State and not the banks and politi-
clans would have the benefit of this
enormous fund:
THE HUMEs BILL.
can Act to amend the provisions of
the third section of an act approved
February twelfth, one thousand eight
hundred and sevcnty-six, entitled Gan
act supplementary to the act entitled
AN act supplementary to the several
acts relating TO the State Treasurer and
commissioners of the sinking fund ap-
proved May ninth, one thousand eight
hundred and seventy four "
"SEoTIoN /. Be it enacted by the
Senate and House of Representatives
of the Commonwealth of Pennsylvania
in General Assembly met and it is here
by enacted by the authority Of the same
that section three of an act entitled 'An
act supplementary to the several acts
relating to the State Treasurer and
commissioners of the sinking fund, ap-
proved May ninth, one thousand eight
hundred and seventy-four,' which reads
as follows
'It shall be the duty of the State
Treasurer to render statement to the
commissioners of the Sinking fund on
the first business day of January, April,
July and October in each and every
year giving the balance remaining in
the sinking fund in excess of the amount
required to pay the interest of the pub
lie debt, whereupon the commissioners
of the sinking fund shall authorize the
purchase by the fiscal agent of the
State of the loans of the commonwealth
next maturing at the then market rates,
provided such purchase can be made
for the best interests of the common
wealth; provided further, that all such
investments shall Immediately be can
celled by said agent and certificate of
the same forwarded to the commissio-
ners of the sinking fund in like manner
as if the said loan had been redeemed
by the commonwealth, shall be amend
ed to read as follows
''That it shall be the duty of the
State Treasurer TO render statement
to the commissioners of the sinking
fund on the first business day of Janu.
airy, April, July and October in each
and every year, giving the balance re-
naming in the sinking fund in excess
of the amount required to pay the in
terest on the public debt, whereupon
the commissioners of the sinking fund
shall authorize the purchase by the fis-
cal agent of the State of the loans of
the commonwealth at the then market
rates, provided that all such investments
shall Immediately be cancelled by said
agent and certificate of the same for
warded to the commissioners of the
sinking fund in like manner as if the
said loan had been redeemed by the
commonwealth"
"SEo. 2. If in the opinion of the
commissioners of the sinking fund the
purchase of loans of the commonwealth
cannot be made for the best interests
of the commonwealth it shall be the
duty of the said commissioners to au-
thorze the purchase by the fiscal agent
| of the State of the bonds of the United
States at the then market rates, the fs-
cal agent of the State shall make i'm,
mediate return to said commissioners of
| puC anu diIicuub vi CdCl DOuu
of the United States SO purchased, and
the premium paid therefor. And it
shall be the duty of the State Treasurer
to enter on the sinking fund ledger
the number, amount and premium paid
for each United States bond so returned
as purchased by the fiscal agent of the
State, provided that the sinking fund
commissioners shall have the right to
dispose of bonds purchased under this
act whenever the money shall be re-
quired for the extinguishment of the
public debt, provided further, that the
sinking fund commissioners shall have
authority to sell the bonds of the Unit
ed States so purchased whenever the
loans of the commonwealth can be
bought at such prices as they may deem
for the best interests of the common
wealth and State loans thus purchased
shall be Immediately cancelled, as pro-
vided by section one of this act