St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-01-04
FINANCES OF THE STATE.
Examiner Kenyon's Report on Banking
Institutions.
CHECKS ON ALL RECEIPTS.
A Surplus in July Tends to a Deficiency
in December. Statistics for Cap
italists.

Gill and Gov.-elect Merriam. The re-
port covers the fiscal years ending July.
1887 and 1888.
Concerning the state treasury, Ex-
j aminer Kenyon. says: ",rhe larger part
of February, March, April, June, July
! the revenue fund in July larger than is
needed, and corresponding deficiency
/ in October, November and December.
can amendment of the law relating
to the treasury is recommended, to the
4. effect that all officers, persons OF cor
porationS from whom any sums of
money shall be due to the state,
. and which, by existing laws, are
! not required to report to some
officer, shall report such sums in writing
/ to the auditor. stating from what source
! received and for what object it is to be
applied if known, and upon receipt of
such statement making it the duty of
the auditor to place draft in the hands
( OF the treasurer, authorizing him to
receive such sum and specifying the
fund to which the same is. to be
credited" This would be a
( PERFECT CHECK ON ALL RECEIPTS.
The period for which balances are
given covers twenty-five months, ten of
which close with a balance exceeding
$1,000 the amount of the treasurer's
bond. In these balances there has
been, since August 1856, a constantly
increasing accumulation of permanent
school fund. The monthly balance of
the fund in September, 1887, was -S217,-
610.16, and in July, 1888, it was $685.
1929. ''These large sums have been
retained with the expectation that
under the late provision for loaning
this fund to counties and school dis
tricts, it would be readily taken by such
loans, but experience has shown that
receipts keep pace with the loans to
this class of borrowers. If 100000 OF
this fund were placed in permanent Sc
curities, the safeguards requiring de-
poSitS to be made in banks. and to be
checked in payment of auditors war
rants, would undoubtedly be sufficient
protection to the state for any tempo
,rary increase of balances over the treas
urer'S bond, and in such case material
increase in the bonded sum would not
be necessary"
In many af the state public institu-
tons there are considerable sums re-
ceived by the stewards or treasurers for
property sold, and such sums are re-
paying various expenses, and in some
cases to supplement the state appropria-
ton. The appropriations should be
made sufficiently large to meet all eX-
penseS. and II the institutions should
berequired at stated intervals to make
return to the state auditor of all amounts
received from all sources
OUTSIDE THE STATE TREASURY,
and to pay over such amounts to the
state treasurer upon the receipt of no
tiee that the state auditor has made a
draft for the same. In this way the
state accounting officers will have COM
plste supervision of the expenditures
and their records will show, the sources
and amounts received at the different
Institutions. AS at present managed
SUCH records are scattered through the
various reports of the separate inStitu-
tions. and eXceptas they appear in the
reports of;this office and of the board OF
charities, there is no convenient pub
lished record of such matters.
! An abstract of statements of the.
eighty county treasurers for the year
ending. Feb. 90, 1888, show receipts,
S13.7l3, 1912; disbursements, $10,696,-
1926, leaving a.. balance on hand of
$3,017, 005.17. An increase of 20 per cent
in the salaries of county auditors is Sug
gested. aj'
The banks organized under the state
law have increased from Al, July 81,
1856, to 81, July 81, 1888. The increase
in capital and business is shown in the
following summaries: FOrty-one state
banks July 81, 1886, resources. S16,-
5Sl, 1851; 81 banks July %, 1887. re-
sources, $4,000, 512.39; 81 banks June
80, 1883, resources. S23, 459, 1868.
The increase of resources and liabili-
ties since July 81, 1856, is S6,S78. 201.37,
the principal items of which are: In
crease of capital sto elk, 81 ,370, 400; sur
plus and undivided profits, Sos, 1.02;
increase of deposits, including banks,
81, 574, 1917, making a total of $685.
$4,000. The increase in capital stock
was
OVER 80 PER CENT.
The national banks doing business in
the state June 80. 1883. were fifty-six
and showed the following items: Capt.
tai stock, SIS. 900; surplus, S2.5i1,-
562 SO: undivided profits, 81 ,645, 99S.S6;
notes outstanding, 1858, POS; bills pay
able, $4,000.
The state system is showing its ability
to sustain itself in competition with the
national banks, not only throughout the
state generally, but in the centers of
trade and population, and obtains and
holds a relative share of confidence
among business men and the public.
Lessening profits in interest earnings
has brought greater care in making
loans and a general management of such
a character as merits and receives the
confidence of the public. Many private
banks have deposits of county funds.
Such banks, when acting as deposit
cries, should be brought under the
supervision of this Office as to eXamina-
tons.
State savings banks consist of seven
associations. Their business is. shown
in the following summaries: Year end
ing July %, 1887, number of depositors.
1914; average deposit, S2l9.91; re-
sources. s., 242, S91.29.
Year ending July 81, 1888, number of
depositors, 1862; average deposit,
S223. 25: resources, s., $40. 259.71.
There are four companies organized
and doing business under the laws re-
lating to annuity. safe deposit and
trust companies, as follows: Minnesota
Loan and Trust company, Minneapolis;
st. Paul Loan and Trust company, st.
Paul; Minnesota Title Insurance and
Trast company, Minneapolis. and
American Loan and Trust company,
Duluth. Each of the companies has de-
posted the guaranty fund required
with the state auditor. The resources
July 81, 1888. were S2,221 ,664.41.
WATER WAS WANTED.