Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1891-01-22
Interest on State Funds.

The legislature of 1876, having ascer-
tanned by the report of the state treasurer,
in response to resolution of inquiry, that
deposits of the moneys remaining IN the,
Treasury to the credit of the various funds
had been customarily made in various banks
in the state, and that the treasurer had
derived considerable sums OF interest
every year from the banks which carried
these fund.-, enacted stringent law by
which he was required to keep within the
vaults of the treasury all public moneys
committed to his custody, and In COM
pensation so far as the legislature regai ded
compensation justly due, for the deprivation
of interest and fees previously enjoyed by
the treasurer, the salary of that officer
was changed from 81, 200 to S. 900, and
he was directed to pay INTO the treasury
ali fees and perquisites received by him
from every source. This law was in
cOrporated with the revision of 1878 and
still remains upon the statute book, a
plain and unmistakable declaration of the
policy of the state, as determined by the
legislature; and its enforcement Is charg-
ed upon the governor and attorney
general, as an additional sanction, who
are required. at least once in each quarter
OSdl, anu lO ShC1 obtlC1 tllllco uS lIlC
governor my think fit, to examine and see
that all money appearing by the books of the
secretary of state and state treasurer as
belonging to the several funds. shall be in
fact where the law required it to be, in
questionably the purpose of the legislature
to prevent the use of public funds for any
purpose of gain to the treasurer. to any
favorites, or to the state itself. Notwith
standing, it now appears that this law has
been Systematically and continually vio-
lated for years, By the deposit OF most of
the funds of the state, amounting to many
hundreds of thousands of dollars, in
various banks, and public rumor, so strong
ly confirmed by circumstances as to be en-
tirely credible, imputes the practice to
the banks holding these deposits, of pay
ing interest for the use of the money,
either to the treasurer or to other persons
whom he has permitted to receive it.
There are many reasons which render it
prudent and even desirable that the pub
lie moneys should be kept in repositories
outside the treasury. The rish which the
treasurer and his bondsmen assume in the
custody of so large sum of money, if re
quired to keep it all together, both from
fire and robbery, is such as would seriously
interfere with that officers obtaining
suretips for the high liability imposed By
his official bond It would be some dis
advantage that so much currency should
be withdrawn from common use, and es-
pecially is it convenient to the creditors
of the state that payment be made by drafts
of the treasurer payable at commercial
centers. These considerations have oper-
ated to check criticism of violation Of the
law. among those to whom the facts be-
came known, and seem, With others. to in
dictate that the policy declared by the legis
lature of 1876 is not the wisest for the state
to pursue.
During many years the average amount
Of public moneys available for deposit
has probably been above $780, and
banks of the most approved responsibility
are ready and willing to carry these de-
posits, subject to check or demand, and
pay the usual rates of interest common to
those institutions where large sums are
kept 10y depositors for a length of time
This rate of interest ranges, as am in