Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-10
P1TTsBURG. WEDNESDAY, DEC. 10, 1890
BEAyFR,S FINANCIAL VIEWS.

The opinion Governor Beaver offers in de-
fense of the management of the State depos-
its and sinking fund is hardly of kind to
convince the public that matters cannot be
improved by requiring, first, a strict OBJ
servanee of the laws intended to keep those
large sums OF money from being used as
part os the political spoils; and, second, to
further the same purpose by additional leg
islation wherever it can be made effective.
In making an argument against an al
legged proposal to have the Legislature
designate certain State repositories, the
Governor to some extent sets up man of
straw. To make such a change would be
little, If any, Improvement on the present
state of affairs. But that is not the real
complaint. The eindictmept'againstt the man
agement of the State deposits is that a vast
amount OF money is distributed around the
State, without regard to the convenience of
monetary transactions or the stability of the
repositories, but simply as a matter of DO
liucal favor. Beyond that it has been
clearly brought out that in the pursuit of
this policy the laws governing the manage
ment of the State funds have been ignored
and nullifed.
In attempting to give reasons for ignoring
these laws, the Governors arguments can
hardly be dignifed by calling them spe-
cious. In the first place, ne entirely forgets
the duty of State officials to carefully obey
the requirements of statute and constltu-
tional enactments. Beyond that his repre-
sentations of financial policy are far from
intelligent To speak OF the loss which the
State would have suffered from an alleged
depreciation of United States bonds, if its
funds had been invested in that form, is
wholly ignoring the fact that no such depre-
citation has taken place as will balance the
loss from leaving the State deposits living
idle without drawing any interest whatever.
To refer to the 81, 500, 900 disbursed in the
redemption of loans, as argument for
keeping the money idle, may have some
pertinence so far as the 81, 500. 900 is con-
cerned but it does not iegitimize the fact
that over 81 600. 600 in addition to that sum
have been kept idle, which, by the terms of
the statute. should have been invested. As
to the need OF having the money on hand to
redeem the State loan of 1892, every child
ought 10 know that whenever more of those
bonds can be redeemed than the sinking
fund might have ready cash for, the U nited
States securities could at any time be con-
verted into cash at twenty-four hours no.
tice.
The Governor is hardly more fortunate in
his defense of the sale of that 81, OO0, 900 OF
United States bonds. 1t was done, be says,
under an understanding with certain men
that thev would apply the proceeds to the
redemption OF an equal amount of State
bonds" If there was a contract that State
bonds should be furnished, to this amount,
the transaction would have been in accord
ance with the law, although common sense
view would suggest that the State bonds could
be redeemed out of the two millions or more OF
idle money in the sinking fund, thus giving
the State the advantage of both investments.
But that there was no contract appears from
the iact that there have been no proceedings
to enforce its performance. To sell out a
million dollars Of an interest-paying invest
ment contrary to law, upon "an under.
standing with certain parties" is very re-
markable financial administration.
1t certainly would be plain to the official
understanding that laws governing the
handling of State funds are entitled to tht
scrupulous respect of State officials; bu
Governor Beaver seems to find much diff
Guilty in grasping the idea.