Capital journal. (Salem, Or.) 1893-1895, 1893-08-21
OREGON STATE FINANCES.
When the State Should Be Solid
II Is Weak.
DEFECTS or OUR SYSTEM SHOWN.
Straight Comments On Treatment
of Public Funds.

II the people Of this state ever secure
any reform in the management of theii
state taxes they can thank the present
f0ancial crisis aud the agitation Of the
matter In the JOURNAL The people
are determined to stop further juggling
with public taxes by county officials
and local banks. Oregon is in the pitt
full condition Of having collected half
q million Of state taxes from the people
and having not cent turned lover to
the state treasurer according to law.
Twice as much more Of county, city
and school funds Is probably collected
and loaned out TO money sharks and to
bolster weak banks all over the state.
County sheriffs and treasurers have too
long been a law unto themselves, vio-
Iatiug the confidence Of the people and
ignoring their obligations to the state.
There is no disposition to make the
matter worse than 1t is. The attempt
to suppress discussion OF this great pus
lie iniquity comes from those who have
reaped the profits of boodling the put
lie taxes. 1t does not come from the
state officials. 1t Is an abuse that has
been fostered for profit by an unscru-
pulous ring Of money-changers and
Doodle politicians at Portland. They
are crying out that there should be one
newspaper In the state TO make their
corrupt practices prominent at time
when IL will educate the people TO de-
mand better order of things In our
public revenues and higher code Of
morality among those who handle the
public monies direct from the people.
There should be greater publicity in all
these matters from the state funds
down 10 county, city and school funds.
Discussing this subject a Portland
paper-the 1elegram-has the follow
ing scathing rebuke 10 the tax boodlers:
A BAD PRACTICE.
What is the difference between steal
ing under the guise of law and stealing
contrary to law? What shall we think
OF the morality of the Portland banks
that have cOnfessedly been doing busi-
ness with state funds, city funds, coun-
ty funds, any funds but their own
funds, and all these public taxes paid
by the peopls?-CAPITAL JOURNAL.
The Portland banks are not alone. 1t
Is the universal practice throughout the
state to deposit public funds In the
banks, because the law has made no
other provision for the custody of the
money. 1t Is also the universal prac-
tlce for the banks TO use these funds as
II the money belonged to them and was
not committed to them in fiduclary
trust. The practice Is most reprehen.
slble, yet 1t Is mole the fault Of the
legislature and OF the state constitution
than II Is OF the state and county OH
clals. IL has gone so long without pro-
test being made against 1t that the
banks look upon II as their special per-
qulslte, and has led TO the additional
evil Of allowing banks aud bank OH
GERS TO become bondsmen for the public
officials who handle the money.
There are two remedies for this. One
Is to have certain banks designated as
Of public funds and then
require them to execute aud file special
bonds TO cover the public deposits; aud
10 further require them to pay interest
ln such deposits. The other remedy ia
70 make the public treasury IN fact what
I is la name-the place OF deposit for
public funds. The state aud each ooun-
y should have its own vaults, aud the
reasurer made custodian thereof Then
here would be no temptation 10 juggle
gith the public funds. The collecting
Ulcers would have 10 deposit Ia the
aults before taking receipt from the
'easurer. IL the treasurer took the
loney out of the vaults aud deposited
IN a bank, he would be guilty OF EN-.
vehement
The evil Of the prevailing system was
right here In Portland,
here the bank crash was precipitated
fight between two rival banking
,titutlons for control Of the county
,ney. How much loss there will be
state and county is yet a conjecture,
we know enough 10 say that Il Is o.
ng TO be hard rub for the taxpayers. :,
All events the people Of Oregon have :