The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-02-09
From the Journal Of Sunday
AN EXHAUSTED TREASURY.
The State Auditor Refuses to Issue
Warrants Upon the General Fund,
And the Members of the General Assembly
Can Draw No Salary Until They Leg
islate for 1.-THE Loan Bill.

There was something of a panic among the
employees and some Of the members of the Gen
eral Assembly yesterday morning when a clerk
brought the news from the State building that
Auditor Rice had refused to issue any more war
rants upon the general fund, for the reason that
there was no money in the Treasury. The or
ders for salary warrants which had been taken
to the Auditors Office by the clerk were
returned without money, and with the news that
there was none available, which caused almost
as much excitement among the statesmen for
revenue as if they were depositors in a bank
which had failed. The alarm was augmented by
the reports concerning the condition of the
Treasury funds which have caused the agitation
OF the question regarding the necessity of an in
vestigation of the affairs of the office, and it was
supposed that the trouble had some direct con-
nectlon. with the alleged unsound condition of
the Treasury. The report became more and
more sensational in character as it
spread. Many of the employees and
members Of the Legislature hurried down
to the : tie building, and anxiously endeayored
to get Whatever was due them, evidently afraid
that the Treasury was about to collapse.
EXAMINING THE TREASURY.
The condition to which it was found by The
ODpSAN0 OAhAh O""o WIZ ~
funds were reduced is extraordinary. An ex-
planatory statement was sought by a Journal re-
porter.
There have been extraordinary demands
upon the general fund, y Auditor Rice said, land
the result is that it is exhausted, with the ex-
ception of a balance of about 81. 800. A week
ago there was about $40, 900 to the credit of the
fund, but the regular monthly allowances for
the maintenance of the Insane Hospital, the
nfhaR r nn1 h nnn n h
Legislature have reduced it to almost nothing.
There have been heavy demands upon the fund
on account OF special appropriations which were
made two years ago, and the present condition is
simply the result of the Legislature having
failed to promptly pass the bill authorizing a
temporary loan. They don't seem to under
stand the condition of things. There can now
be no more money paid out. and the members of
the Legislature cannot draw any more salary
until they authorize US to secure a loan"
DO you think there will be any difficulty in
borrowing money at 81 per cent. INTEREST,""
IF the Legislature had passed the bill for the
temporary loan of 5000, 900, as it ought, this
morning, | could have the money in the treas
ury Monday evening The bonds are already
printed, and the mere enactment of the bill
authorizing us to issue them is all that is neces-
sary to get the money"
Has the general fund ever been exhausted
befcreg'
"In 1873 the State was in about the same pre-.
dicsment. 1 was then a clerk in the Treasurer's
Office. and / found that the general fund was re-
duced to about SO, 900. There was then a sink
ing fund Of 800. 900. l told the Treasurer that
we would have TO refuse to pay any more war
rants for the salary of the members of the Legis-
~lature, until there was more money to
the credit of the fund. Within two hours
we had 800. 600 in the general fund. A bill was
passed with a rush loaning the sinking fund to
the general fund I have prepared a bill, which
ought to have been passed to-day. providing for
tho fa,ppop p- Loon IN a cip,i1op vnapnor of tho
State University fund, which amounts to $780,
600, so that it may be available in the future if
an emergency should arise. 1t may now be used
to pay the interest on temporary loans. but it
cannot be borrowed by the general fund"
THE CONDITION OF THE FUNDS.
There is no money due the Treasurer from any
of the counties, except Marion. '"There is" Mr..
Cooper stated to a Journal reporter, ''only about
S., 1000 due on the December settlement from
Treasurer WATSON. Although it is due, the set
Element is delayed no longer than usual The
local county officer hardly ever settles promptly
unless it is required"
What have been the extraordinary demands
which have exhausted the general fund.-" was
asked Mr.. Cooper.
w began the year with heavy demands on
the fund. About $500, 900 has been paid out on
the construction of the new insane hospitals; for
the completion of the female department of
the Insane Asylum $40, 600. the Ohio river food
sufferers $50, 900. the Coughlen bonds $135, 600,
the Female Reformatory and Northern Prison
sewers $40. GOO, making an aggregate of about
800, 600 of extraordinary expenses which were
drawn from the fund, the total amount of which
was about ST., 300, 600"
The monthly statement of the condition of the
Treasury on the 3lst of January, which was pub
lished on Friday, showed a balance in the
Treasury of 81, 044, 494. 80 on the first day of the
year. The disbursements during the month
left $459, 974. SO on hand. The amounts to the
credit of the different funds were: To the gen
eral fund, 1928, 954. OS; school revenue, $780,
LA. 62; new State-house, $l7, 857 81; college fund,
principal, $1,47z13, and interest, $717.29
permanent endowment, 81, oil. 81. ard sales of
lands under the act of 1883, $500. Since the 1st
of February the Treasurer states that he has
paid out $170,6 1O, which, deducted from the
$3.50, 994:89 on hand a week ago, leaves a balance
of $289, 1884 80 in the Treasury. The school
fund. the Treasurer states, has been heavily
drawn upon within the last few days, about
$3.50, 600 having been paid out.
'.Since the session of the Legislature began
Mr.. Cooper says, tits expenses have amounted
to about $50, 900. The Insane Hospital warrants
have largely reduced the fund during the last
week.
sAre any of the other funds likely to be in
'Oh, no! The special funds are not likely to
be exhausted. During the next week we will
pay out, in the distribution of the school fund,
about $40, 600, and with the other demands we
are Lkely 10 nave 10 meet, IL Is PROBABLE bnaI at
the end of next week the total balance on hand
will be about 5000. 600. The largest amount to
the credit of any special fund is $120, 000 belong
ing to the State-house fund"
NO LEGISLATION, NO PAY.
During a conversation. while the Journal re-
porter was present, Treasurer Cooper suggested
to Auditor Rice that he was willing to borrow
sufficient upon his own credit to pay any war
rants for the salaries of the members and EN-
ployes of the Legislature. That's well
enough so far as you are concerned replied
Auditor Rice, ftbut shall issue no warrants.
Tbera ic M monav in the Treasury balonoino to