The Indianapolis journal., 1886-02-06
THE PUBr.Io FUNDs.

/ Inc journal has, time and again. expressed
its opinion on the present treasury system, to
the effect that, under the laws as they now
exist, a condition of affairs like the present
shortage in the city treasury may belooked for
at any time. The law, as interpreted by the
courts, makes the county and city treasurers
the absolute owners of the money realized
from taxes. The treasurer can deposit in
banks, loan to friends or loan for interest as
he pleases, without being gnilty of any crirni-
nal offense. That the public lose money
under this system of conducting affairs is not
to be wondered at. The officer places the
money where he expects to realize the greatest
profit to himself. Nine cases out of ten a
| treasurer is elected because of his good fell
lowship and good friends rather than because
Of his good judgment and good business
qualifications; and so, under the present sys-
office, of thousands-and, in many counties
and cities, of hundreds Of thousands
of dollars, where, before getting
| into Office, he had not owned or
controlled even a few hundred dollars
The prospect of gain and the expectation of
being repaid before the expiration of his term
of Office by those to whom he loans the public
funds for interest, dazzles the eyes Of the
treasurer, and the frequent result is loss to
4 the ruhlie op RI tho hop3c,,oy of@ Tho of4;oar
EsThere is no excuse for the treasurer that, be-
cause he is not criminally liable for the con-
version Of public funds under his control, he
should. in fact, convert them; but, as rule,
officers do use the funds in ways by which
they hope to insure gain to themselves. The
| want of the hour is some system Of keeping
the public funds safely. The per cent. Of loss
| to the United States under the sub-treasury
and depository system and the penal statutes
is almost ininitesimal. The State could
well afford to have some such system. The
State and the counties might we'll fix the
bank or banks that should hold their funds,
without interest, upon the deposit with the
Treasurer or Auditor Of State of approved se-
curities, not necessarily United States or State
! bonds, bat securities Of State, county or
city, or such other stocks or bonds as have
| fixed and stated value. Then, with proper pc
nal statutes for the violation or noncompli-
ance with the law in regard to these funds, a
more reasonable hope may be entertained of
the safety of the moneys belonging to the
people.
The case of the late city treasurer is one in
point He gave bond approved by the
proper authority; he collected and held the
money Of the city as his own property-as un-
der the law, construed by the courts, he had
right to do When his term of Office expired
he was unable to settle by over one hundred
thousand dollars. What became of the money
the public are not informed "A part-say
one-third-of his shortage was lost by the fail
ure Of banks, with which he deposited for
the sake of gain. Where the balance of the
money went is an unanswered question. The
| Journal has no excuse to offer for Mr.. Patti
son, and makes none. He was not faithful
officer; he hazarded the money of the people,
and it is lost. That he is not the first, or, un-
fortunately for the people, the only officer to
lose the public money is no extenuation of his
fault, nor can he plead the excuse of custom.
| His duty was plain and unmistakable Now
that the money is not on hand, and the prob
ability of the recovery of all of it by any
means in sight very questionable the duty
devolves upon the proper authority, the Board
of Aldermen and Common Council, to do that
which, ON full and proper investigation, is
best for the city. The Journal is not sufi-
ciently advised, nor, with its best efforts, has
it been able to learn, what the true condition
of affairs actually is. There is doubt as to
| the form and execution of the bond. Whether
it is SO defective as to relieve the bondsmen is
| a question the Journal will not undertake to
determine; and, if it be sufficient in form and
| by Judgment and execution from the treas
urer and bondsmen is still further question.
The citizens and taxpayers of Indianapolis
have right to demand and expect of the AL
dermen and Council that they carefully inves-
tigate the whole subject and that, after such
| investigation, they do that which is found to
be for the true interest of the people.
|
OF course, the investigation into the Pan
electric telephone scandal. by the committee