Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-10-17
PITTsBURG. FRIDAY. OCT. IL, 1890
SINKING FUND AND STATE DEPOSITS.

Pl1ISBIh hII, I, OCl- II, 1oSO.
SINKING FIND AND STATE DEPOSITS.
The more that subject OF the State deposits
is1nvestigated the more does it appear to con-
tain a fruitful theme for explanation on the
part of Republican managers, and especially
on the part Of the Republican candidate.
The DISPATCH has already pointed out
the difference between Governor Pattison's
insistenee on the investment of the sinking
fund and the Republican administration
which has permitted the accumulation OF
the Striking fund to the amount of s, 1876 OOO,
contrary to the requirements of law.
The present State Treasurer, Mr.. Boyer,
made speech the other day in which he de-
Tended the present sinking fund management
bv the statement that it has purchased over
million dollars worth of securities, and ex-
cused the accumulation of funds on the
ground that State bonds were hard to get,
and that to buy United States bonds, as per-
mitted by the Humes act, at the present
time when the Treasury purchases
have raised the premium, might entail
the risk OF loss. Mr.. BoYer's speech
betravs a very remarkable view Of
Treasury administration. In the first place
If indicates an idea that TO purchase
million dollars for the sinking funds,
where the law requires S3,0OO,0O0 to be
purchased, is a creditable record. Next, it
intimates that the fact that the United
States has largely diminished its holding OF
outstanding bonds, is going to depreclate
the price. and contains inferentially the in
teresting assertion for a canvass, which the
Republicans assert is TO be decided on
national issues, that the United States
Treasury administration is wasting the pub
lie money by accepting just that risk OF
loss which the managers of the State sink
ing fund refused to. As the prices of State
and United States bonds represent rates of
interest ranging from two to four per cent,
Mr.. Bowers idea that their purchase could
entail a greater loss than keeping the
money in banks at just exactly no interest
at all, reveals one of the most remarkable
financial minds in the country.
Of course, there might be loss if the
Sinking Fund Commission was going to
speculate in United States bonds, buying
them at one rate of interest and selling them
at another. The remarkable fact that the
Republican administration of the sinking
fund has done exactly this thing may
explain Mr.. Boyers still more remarkable
argument Under Governor Pattison's
administration over 81, 100000 of the sink
ing fund was invested-much Of it in
United States bonds. Under the Humes
act these bonds could not be sold except for
the liquidation or purchase of State bonds.
Yet, in the face of this provision, the Re
publican administration of the sinking
fund sold 81, ,OOO. 600 of these bonds and
distributed the proceeds of the sale among
the State repositories.
There we have an illustration of the
necessity of enforcing the provision of the
Constitution with which Senator Delamater
has been confronted. 1t is desirable that
when law and policy are both violated,
members of the Legislature should be ready
TO investigate and punish. This very
matter was brought up in the Legislature.
Hon. S. NJ Wherry declared that it was
a shameless violation of law, and asserted
Inab ne cOulu prove IuS uOueF W udNS USSn
corruptly used and criminally mis-
applied. Yet, the investigation which
he demanded was suppressed by the
influence of Delamater and Andrews.
The connection of the constitutional pro-
vision with this matter may appear when we
find in the stof deposits for the sinking fund,
swelIed as they were by this violation of
law, the following item, "Delamater & Co.,
Meadville, $780, OOO.''
Here we have remarkable illustration of
the regime OF politics run without regard to
law, and for the interest of the favored poll
ticians. The Constitution is violated in one
particular; the statute law is overridden in
another; funds which should yield the State
a material revenue are not only withheld
from investment, but when invested by
previous administration are actually sold
out. When these things are done that ia
vored politicians may enjoy the use OF the
money in hundred thousand dollar lots
without interest, it is likely to impress the
people that they want executive officers who
will respect the law and tho Constitution in
their official course