Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-04-02
THE EPEOPLE'S MONEY
Legislative Committee Taking Testi-
moDy on Plans for Investing
State Funds.
PUTTING BANKS UNDER BOND
Not Considered q Practical Scheme BY
the Rttsburgers Examined
Yesterday.
AN ALMOST UNANIMOUS DECISION
PUTTING BANKS UNDER BOND
AN ALMOST UNANIMOUS DECISION
In Favor Of Considerable Increase In the Yearly Salary
Of the State Treasurer


OF State funds, spent several hours in par
lor ID, Duquesne Hotel and thereabouts
yesterday. The seance was pleasant one,
and even Sergeant at Arms G. J. Hutchin-
son, of Huntington, and the stenographer
managed to get through the ordeal without
greatly willing their collars. The session
opened at 10 o'clock A. NJ, and there was
another meeting after lunch, at P. NJ, but
no bankers attended at the afternoon ses-
sion.
Senator George II. Smith presided, and
Senators Finn and Monaghan, and Rep
resentatiyes Fruit, Fow, Brooks, Stewart
and Skinner took part in the examination,
as their humor CHANGED to prompt them.
Those who testified were President John
d. Scully, of the First National Bank;
President John Caldwell, of the Allegheny
National; Frank Hutchinson, Cashier of the
Allegheny National; George j. German, of
the Mechanics National; Captain Charles
Batchelor, of the Keystone; Charles d.
Mclean, of the Masonic; Mark w. Watson,
of the Exchange National and 7. II. Given,
of the Farmers Deposit National.
Rules for Running Bank.
The witnesses seemed to be so many souls
with but single thought Judging from the
oneness of the testimony. One gruff old
banker who was not present, being asked
what rules he would lay down for the man.
agement of State funds, said he had but one
and that would be comprised in the admoni-
tion Don't be a blank fool" However,
yesterdays witnesses were more suave than
this banker quoted.
1t was pretty generally agreed that the
talent necessary to run the State Treasury
with the responsibility attaching were worth
q salary of $4,000 to $50, 600 year.
As to the proposition that State-fund deposit
ories should be required to furnish bonds to be
entered against the property of such deposit
ories, the general opinion was that no bank in
good standing would accept The conditions MIR.
Hutchinson thought there was risk in deposit
ing in small banks. President Caldwell OF the
Allegheny National Bank, thought the State
Treasurer should not have great sum at COM
Inand at one time. He said he would not de-
Josit State funds in a bank with less than $780,
200 surplus.
State Treasurers Always Honest.
Captain Bachelor. of the Keystone. sug-
Eested that if honest men were elected treas
urers there would be no trouble and to this
Senator Smith answered: I'VE have had no
dishonest trustees thus for" and, while admit
ClOr added: But some of them have dishonest |
friends"
Mark W. Watson, President of the Exchange |
National, opposed scattering State funds about |
among small institutions. and would invest |
them in bonds or some equally safe kind of
available property. In answer to Mr. Fow,
who asked if witness thought it prudent to
have designated repositories, Mr.. Wat
son expressed inability to answer pos |
irIvely. To Senator Finn the witness |
said he would favor restricting the amount |
llaced in QenOcirOrV and EXPRESSED
preference for either State or national banks. |
Mr.. Watson was not enamOred of the Philadel- |
phla plan, which, if applied to the State. would |
make II necessary for the Governor and Adju- |
fant General to indorse the treasurer's war |
rants. Witness favored the appointment of a |
state board to select the repositories provided |
some way could Oe devised to insure the hon. |
esty and capabiity of the board. |
Pleasant for the Banks.
Mr. Mclean, of the Masonic Bank, thought |
the selection of repositories by the State would
he nice thing for the banks chosen and
thought some of the guaranty companies would |
furnish security for State funds. He didn't |
believe that bank would give judgment
bond
7. h. Given, of the Farmers Deposit Ma
tional Bank, said State banks should have the
preference over national banks as repositories
the former being creatures of the State. He
SAID experience showed that the quarterly |
examination of national banks did not prevent |
deposits from going out Mr.. Given, however,
would nave an examination system applicable |
80 State banks, especially SO to the repositories
OF State funds.
Mr.. George S. German. President of the
Mechanics National Bank, seemed to think
treasurers entitled to some rights, and as they
must give bond, ought to have something TO
say as to the repositories. If relieved of re- |
sponsbility of course the case would be |
altered.
The Conclusions Ar rived At
There was practical unanimity among the |
witnesses TO this effect: Salary of State Treas /
urer should be advanced to $4,000 OF $4,000; |
1t would be good idea to have State depos- |
itories furnish judgment bonds to be entered |
against them, but while in favor they would i
oppose its enforcement as applied to their own /
institutions, and that no bank in good standing /
would allow it; the bond required of a State /
Treasurer should be larger, but it isn't prac- !
teal TO make it SO; plan might be devised to !
limit the amount of funds that can come iuto |
treasurer's hands at one time. and another |
suggestion is that checks of more than 100000 |
should be required to be countersigned by I
some other official or off cials before they are |
negotiable.
The inquiry will be resumed this morning at |
20 o'clock at the same place.
WEAK lungs are cruelty racked and the |