Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1891-01-22
thus enjoy. n0 people may
- me following is a statement of balances in
tne several funds of the state treasury at noo1,
On Monday, January 5, 1891: a' noon

81 Z.t6
Wis = p q NJ = nu ; 40S OF
MahltoWoc Calumet Swamp Land -
co1uIhio (. &c; so,I- 2,l64 So
nlan, 2605 "a
11' i''1Au''''- 916 81
Roo otal - ST. 81
treasurer Board of Regents Unlyersi-
Treasurer Board of Regents, Normal A'''0' ~
p ochool ................... S,0S4 -
cm aH p 5o5 90
noit ~ pnau una 1923 43
Depool' per cent 2,1Sl 90
lotal''.:..:: S32 424 CO
INTEREST ON STATE FUNDS
The Legislature of 1S7e, having ascertained
ny inc report or the state treasurer, in response
70 resolution or inquiry. that deposits Of the
moneys remaining in the treasury to the credit
OF the various funds, had been customarly
made III various bank ks in the state, and that the
treasurer ta had derived considerable sums of in
tere5t every year from the banks which carried
lhese funds. enacted a stringent law by which
he was required to keep within the vaults of the
treasury all public moneys committed to his
CUSTODY ana IN compensation. SO far us the
Legislature regarded compensation justly due
Tor the deprivation of interest and fees
previously enjoyed by the treasurer, the salary
OF that officer was changed from 81 200 to IS 900
ana ne was directed to pay into the treasury all
ices ana perqu1sltes received by him from every
source. This law was incorporated with the re-
vision OF 1875. 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 adj
dlt1onal sanction, who required at least
once In each quarter year, and at such other
times MS the governor may think fit, to examine
ana an see that all money appearing by the books
OF me secretary OF state end state treasurer
belonging to he several funds shall be in fact
Where the law required it to be. in the vaults of
the treasury. 1t was unques ionably the pur
to
the use of public funds for any purpose
OF gain to the treasurer. to any tavorites or
to the state itself Notwithstanding, it appears
that this law has been Systematically and con-
tlnually violated for years, by the deposit of
most of the funds of the state. amounting to
many hundreds of thousands of dollars, in va
rious banks, and public rumor so strongly con-
frmed by circumstances as to be entirely credi-
Die, lmputes the practice to the b. holding
these deposits, of paying Interest Tor 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 renderit 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
all together, both from fire and ni'p 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 much currency
should be Withdrawn from common use, and
especially is it convenient to the creditors of
the St2IC 1naG payment De MADE Dy drafts OF
the treasurer payable ut 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 fol-
the state to pursue.
public moneys available for deposit has prob
ably been above $70).000 and banks of the most
approved responsibility are ready and willing to
carry these deposits, subject to check on de-
maud, and pay the usual Ia es of interest com
mon TO those institutions where large sums are
kept by dcpoSiters for length OF time. This
rate OF interest ranges, as am informed, from
to per cent, and it is obvious that the deposit
of these funds, under proper restrictions, might
therefore not only subservc the useful purposes
indicated, but righttully and properly afford to
the state moderate source OF revenue, when
would be to that extent relief to the people
from taxation. To secure the safe operation OF
such a policy careful legislation is necessary.
Among other things it should require abundant
security from every bank admitted to the list OF
public dePotorss; it should and make npov ide
g protect 0t the funds from loss and
ensure payment TO the treasury of all interest
arising from them This implies, of course,
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 lnstltu-
ton are often entrusted to banks by private par
ties, and it need not be said that loss, more eS-
pecially among the we'll established and APP
proved banking institutions of the state. is q
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 munl-
CAPABILITIES, and has favorable experience to
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
he state treaSurers, or others under their dlrec-
ton was earnestly maintained among the peo-
pie, and it is believed has the support OF sound
princiDles of law. The attorney general will,
therefore, in due time, institute such proceed
ings in the courts as he shall regard proper 10
recover such interest moneys. The amount as
stn Ike is considerable The laborS involved are
o 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 De-
longing to what are known as the trust 1unds,
and the sole rightful purpose to when these
funds can be applied is to gain interest. Neces-
sarily, in order best to promote TINS emo. theIe
ment AS can be safely left open to the officers
charged with this duty AT present loans can
be made only upon the bonds OF TINS state OF
which none exist, upon the bonds OF the Unlleu
states and certain speclhed staleS, o. NnIcL lew
mr. none are practically available. or upon loans
ia school districts or municipalities W1tnln the
state which 40 not require so much. AN I'M
fortunate experience has shown that the STATE
cannot safely undertake to make loans OF tneSe
funds to individuals, but believe that theie
orc Of her securities to be obtained in when the
runds of the state may safely be placed SO lntI
ali may be made available to the ENDS 1or when
they were provided, if not better rates Or 1nter
est gained, Your attSutIoli ID AS0 49,
yited to thus subject,
sEMI-ANNUAI. PAYMENT OF TAAEs.
The taxes which are annual! tAau11ou $50 49,,