The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1891-01-22


Total .s6ss, 977 81
Balances as Treasurer ex-oficio:
Treasurer Board OF Regents, UnlversJ
" ....,......... ..............-sl5,76 5 16
School 1' - ~ u.s. s034 u
Bank Redemptior ............. ... 5,015 90
Soldiers Orphan FUND.-. d'4ao 40
Deposit per cent.....-......... 2,loI y
Total .s82 424 90
INTEREST ON STATE FUNDS.
The Legislature of 1876 having ascertalned
by the report of the state treasurer. IN response
to resolution of inquiry, that deposits OF tne
moneys remaining in the treasury to the credlt
of the various funds, had been customarlly
made in various banks in the state, and that the
treasurer had derived considerable sums OF IN
terest every year from the banks which carried
these funds, enacted a stringent law by which
he was required to keep within the vaults OF the
treasury all public moneys committed 10 MS
custody, and in compensation, so far as the
Legislature regarded compensation justly due,
for the deprivation of interest, and ices
previously enjoyed by the treasurer, the salary
OF that officer was changed from 81, 200 to $780,
and he was directed to pay into the treasury all
fees and perquisites received by him from every
source. This law was Incorporated with the re-
vision of 1878, and still remains upon the stat.
ute book, plain and unmistakable declaration
of the policy of the state, as determined by the
Legislature; and its enforcement is charged up
on the governor and attorney general, as an ad-
ditional sanction, who are required. at least
once in each quarter year, and at such otner
and see that all money appearing by the Dooks
of the secretary of state end state treasurer as
belonging to the several funds shall be in fact
where the law required 1t to be- IN the vaults OF
the treasury. 1t was unquestiOnably the pur'
pose 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. Notwithstanding, it appears
that this law has been Systematically and con-
tinually violated for years, by the deposit OF
most CT the funds of the state. amounting to
may hundreds of thousands of dollars, in va.
rious banks, and public rumor, SO strongly con-
frmed by circumstances as to be entirely cred1-
BILE, imputes the practice to the banks holding
these deposits, of paying interest for the use OF
the money, either to the treasurer or TO other
persons whom he has permitted to receive 1t.
There are many reasons which render 1t prudent
and even desirable that the public moneys
should be kept in repositories outside the treas
ury The risk which the treasurer and his
bOndsmen assume in the custody of SO large
sum OF money, II required to keep II
all together both from fire and rob-
berry, is such as would seriously interfere with
that officers obtaining sureties for the high
liability imposed by his official bond 1t would
be some disadvantage that so much currency
should be Withdrawn from common use, and
especially 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 operated to check
criticism of violation of the law among those
to whom the facts became known, and seem,
with others, to indicate that the policy declared
by the Legislature of 1876 is not the Wisest for
the state to pursue.
During many years the average amount o.
public moneys available for deposit has prob.
ably been above 100000, and banks of the mosa
approved responsibility are ready and willing to
carry these deposits, subject to check on de-
mand, and pay the usual rates of interest conn.,
mon to those institutions where large sums are
kept by depoSiters for a length of time. This
rate of interest ranges, as l am Informed, from
to per cent, and it is obvious that the deposits
of these funds, under proper restrictions, might
therefore not only subserve the useful purposes
indicated, but rightfully and properly afford to
the state moderate source of revenue, which
would be to- that extent q relief to the people
from taxation. To secure the safe operation of
such policy careful legislation is necessary.
Among other things it should require abundant
security from every bank admitted to the list OF
public repositories: 1t should make the
state a preferred creditor and provide
every other reasonable safeguard 10
protect the funds from loss and
ensure payment to the treasury of all interest
arising from them. This implies, of course, a
radical change of policy from that heretofore
prevailing in our law. There appears to me,
however, no reason why that change should not
be made. Even larger sums than the state
would be likely to deposit IN any one institU-
ton are often entrusted to banks by private par
ties. and it need not be said that loss, more es-
pecially among the well established and ap-
proved banking institutions of the state, is a
thing of very rare occurrence. Properly guard
ed, cannot think any risk will be encountered
which the state cannot wisely accept. The
practice prevails with authority of law in some
other states, and more often still with NUM-
commend it.
In the public discussions preceding the recent
general election the right of the state to all the
interest which has been heretofore collected by
the state treaSurers, or others under their direc
ton, was earnestly maintained among the peO-
pie, and it is believed has the support of sound
principles of law The attorney general will
therefore, in due time. institute such proceed
ings in the courts as he shall regard proper to
recover such interest moneys: The amount at
sta Ike is considerable. The labOrS involved are
likely to be great, and it may be desirable that
a moderate sum for contingent expenses should
be provided to further the prosecution of these
proceedings.
INVESTMENT OF TRUST FUNDS
The state holds large amounts of money be-
longing to what are known as the trust funds,
and the sole rightful purpose to which these
funds can be applied is to gain interest Neces-
sarily, in order best to promote this end there
should be as wide an opportunity for invest
ment as can be safely left open TO the officers
charged with this duty. At present loans
be made only upon the bonds of this state, of
which none exist, upon the bonds of the United
States and certain specified states. of which few
or none are practically available, or upon loans
TO school districts or municipalities within the
state, which 90 not require so much. An un-
fortunate experience has shown that the state
cannot safely undertake to make loans Of these
funds to individuals, but 1 believe that there
are other securities to be obtained in which the
funds of the state may safely be placed SO that
all may be made available to the ends Tor which
they were provided, if not better rates of inter.
est gained. Your attention 1s respectfully in.
sEMI-ANNUAL PAYMENT OF TAXES
The taxes which are annually exacted from
the people are not needed at particular time,
but are expended from time to time throughout
the entire year, not only by the state but by
the counties and subordinate municipalities.
1t appears to me plain that all the public needs
would be as we'll .subserved by payment of these
taxes semi-annuaIIy instead of annually, as at
present required, and that considerable relief
would ensue to the taxpayers of the state by
thus leaving in their hands for six months
one-half of the total annual leyies for all
public purposes. This would require some
changes in the present statutes for the col
lection of taxes and for the sale of lands
delinquent for non payment of taxes-a change
not difficult to make in entire harmony with
the present system. Another advantage which
might be gained, would be the relief of the
treasury from the congestion annually ex-
perienced under the present system during the
earlier months of the year. The mill tax for the
support of the common schools, amounting to
nearly 5000, 600. is now collected more than six
months before the period for its distribution,
and necessarily remains not only without
benefit to the taxpayer, but also at certain
risk. These various advantages seem to me so
important that l respectfully commend this
reform to your careful attention. and recon-
mend the proper changes in the statutes to
afford this relief to the people.
THE PUBLIC SCHOOLS.
Ike high rank which our public schools have
attained is matter of just pride to all our peo-