The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-19
TIE STATE TREASURY.

''The State Treasury investigation is before
both houses Of the Legislature and the reso-
luton will be passed. 1t is known that the
Treasurer bias not kept the money in the
vaults of the Treasury as required by law, for
the excellent reason that the vaults are inse
| cure, and were built 80 on purpose to evade
the law. The committee willnot NEEDLE with
that feature of the case, but will simply in
qulre If the State funds are kept in secure
places, and upon that point Mr.. Cooper says
he stands ready to make an exhibit at any
time. From information which | have re-
ceived, it is made clear that Mr. Cooper has
not only reasonable security, but has, in fact,
required two dollars of indemnity for every
dollar he has placed in banks for safe keeping
The felony statute, which prohibits the Treas
urer from keeping the money anywhere ex-
cept in the old sheet-iron box called
a vault, has always been ignored,
both by Treasurers and Legislatures,
and it is not improbable tina t this Legislature
will repeal it, and only require the Treasurer
to account for the public funds. Should this
be done the Treasurer can place the money
anywhere he pleases taking the most unques
toned security for it-security that will al
ways protect the State against the loss of a
dollar, and at the same time fully protect the
bondsmen of the Treasurer. The law was a
mistake, and has always been ignored but its
The above is from an Indianapolis letter in
the Cincinnati Enquirer, and appears as if by
authority Of the easurer of State. Without
caring to discuss the matter at any length, it
may be worth while to say that the vaults or
safes now in the Treasurer's office are under-
stood to be the same in which Treasurer Brett
succeeded in keeping one million of
dollars so securely that loyal Legis-
lature could not get hold of
life of the national government was at stake.
The safes seemed to be strong enough then.
However, here is an acknowledgment of the
fact that the funds of the State are loaned;
that Mr.. Cooper has not the money On hand,
but has ''collaterals;;" and it is openly argued
that the Legislature should authorize the
Treasurer to turn the Treasury into bank
ing establishment Is the State prepared for
thisg It is nothing that the money has
been loaned by former Treasurers, and the
State has lost nothing from the practice. We
presume no body will deny this; but they will
not deny the illegality and the extreme danger
Of the custom, particularly if there is to be
no examination by some outside authority of
the ''collaterals." Other banks and bankers are
regularly and irregularly examined they are
made to show to whom they have loaned
money, and upon what security. The people
of Indiana know something Of the possibili
ties Of ''collaterals, even if their face value
is double the amount of the loan. "Collat-
erals shrink, banks suspend, and men
lose their money, though the banks are man
aged by presumably experienced bankers,
and are subjected to official examination.
Here, in Democratic sources it is confessed
that the. funds of the State are loaned OH ''col-
laterals." Mr. Cooper is no better, or shrewder,
or more careful "banker" than bankers in
whose hands "collaterals" have disastrously
collapsed, followed by suspensions that have
almost brought communities into a business
panic, despite the fact that such banks and
bankers have been supervised by official
authority. The statements in the Cincinnati
Enquirer, as given above, should arouse the
entire State to a demand for an examination
Of the books Of the State Treasury, that the
Democrats in the Legislature dare not resist