Los Angeles daily herald., 1889-09-10
THE CITY FUNDS.
The Finance Committee VIII Ask
for Further Time.

The Finance Committee VIII Ask
for Further Time.
A week ago yesterday two bids were
received by the City Council for the care
of the city funds, in answer to an adver-
tisement inserted under the provisions
Of the new charter. One of these was
from the Farmers and Merchants Bank,
which offered to pay interest at the rate
of per cent. per year, and the other
was from the National Bank of Califor-
mia at the rate OF 2 per cent. per year.
These bids were referred to the Finance
Committee, and it WAS naturally sup
posed that recommendation would be
made that the highest bid be accepted,
but it appears that this will not be the
case. The Finance Committee has been
discussing the subject all week, but ap-
parently has come to no conclusion, for
at it's meeting it decided to report to the
Council today as follows:
SIN re- loaning the city money. your
committee will state that as there have
arisen many questions OF Importance as
to the advissbility and legality of loaning
said money, and as one of the committee
is unavoidably absent on account of sick.
ness in his family, your committee would
respectfully ask that they be given one
weeks further time within which to
report"
It is stated that there are several rea-
sons why the committee does not care to
make recommendation at present. One
Of them is that the rest OF the members
of the Council who have been inter-
viewed on the subject have not arrived
ut definite conclusion as to the right
course to pursue. For some reason the
fact that the highest bid comes from the
Farmers and Merchants Bank seems to
be the main cause Of the reluctance to
act in accordance with the provisions of
the charter, which are as follows:
"The bank offering the highest rate of
interest shall be appointed the deposit
tory Of public moneys"
matter is being delayed for further in
veetigation. 1t is stated that the City
Treasurer has decided objections to the
Council ordering him to keep the city
money in anv place. The statements
made are to the effect that he has given
bonds for the faithful performance of his
duty, and that il the money is taken out
of his hands his bondsmen may with
draw. It is also stated that he claims
that the provision of the new charter re-
lating to the letting out of the city money
is invalid.
This section of the city charter reads
as follows in reference to the Treasurer !:
s'Tbe Council shall direct the City Treas
urer to deposit each day when such bank
is open for transaction of business, with
the bank thus selected all public moneys
Of said city by him collected or re-
eeived.
'For each such deposit the Treasurer
shall take the receipt of the bank, and
from and after the deposit of such money
in said bank the Treasurer and his
bondsmen shall no longer be liable
therefor.
''Should the City Treasurer refuse or
neglect ct any time to comply with the
orders Of the Council, % to the deposit of
such moneys, he shall be liable upon
his official bond in an action brought
thereon, by and in the name Of said cor
poration, for the full amount of the inter-
81 which the corporation should have
received upon such moneys during such
time - 10 shall rstaiu The possession OF