Omaha daily bee., 1893-12-31
the CONDITION or TIRE STATE
TREASURY.

TREASURY.
BEAratoE, Dec. 29.-To the Editor of THE
BEE: II Is my understanding that a law was
passed at next 10 the last session ofthe leg
~islaturo compelling the state treasurer TO
dcpOsi, state funds with such banks as had
complied with tho terms of said law, requir.
ing the filing of good and sufficient bonds to
cover the moneys deposited. II Is also my
understanding that the law provides for in-
tercst at the rate OF 3 per cent on said de-
posits. Can you inform ine why the state
treasurer is not carrying out the terms OF
this law, as | am informed he Is not doing in
any PARTICULAR
Can you inform me why state warrants
are going begging at 90 cents on the dollar
when the trctsurer's books show that there
is nearly 81 500, 900 in the hands OF the state
treasurer Why should | b. compelled to
discount state warrants ut this time! OF
course you understand that these warrants
draw ! per cent, and ! believe the records
show that there Is now outstanding war
rants in the sum of about $1,000 D and, as |
understand it. the state is now losing the 3
per cent interest on deposits a loss is also
being created in that direction.
also learn from reliable authority that
good and sufficient bonds were fled by banks
from the interior of the state, but no attcn-
tion has been given the same. Is IL fair 10
suppose that Lincoln and Omaha banks have
a right to the use of all the state funds. and
does the state hold from these banks in Lin
coin and Omaha bonds equally as good rs
those offered from the banks III the country!
FINANCE.
From the best information at our COM
mand the complaint as regards the
heavy deposits of state funds in Omaha
banks is %groundless. Quite the contrary
is true. The leading bankers of Omaha
assert that they have not been favored.
We are, however, convinced that the
state finances are in Il very deplorable
condition. More than u month ago
the representative of TIE BEE at
the state capital appraised us
hat startling disclosures might be
expected any day relative to the state
treasury. Auditor Moore had made Il
computation that the amount OF general
fund warrants outstanding exceeds
81, OOO, 900. There is said to be u dis
crepancy OF over $500, 900 between the
auditors books and those in the treas
urer's Office. After spending more than
two weeks in checking mp the discrep-
ancy between the books of the treasurer
and auditor, although the auditor has
had his figures fully verified, the books
fail to balance by about 1925 900.
This is not the worst feature of the
situation. Although the state is now
paying over $42, 900 a year interest on
outstanding warrants. the state is not
getting a penny of interest on nearly a
million of dollars which the state treas-
urcr has placed on deposit in the banks.
This means that the state is paying out
$1,000 q year interest when its warrants
could have been redeemed, and the state
is losing from S25, 900 to $50, 900 a yea, in
interest on funds for which responsible
banks were ready to give the very best
of bonds under the act of 1891.
The tanglein the state treasury indi-
Suuco uh"o oiio'o 10 'oiiS"G "toh5 ~
methods of accounting. The enormous
volume Of outstanding warrants indi-
Gates the most rockies tinanciering. Ac-
cording to Auditor Moore the state debt
now exceeds 81, 900, 900, when it is limited
by the constitution to $500, 900. and
the debt is still increasing at the ate of
$15, 900 q month.
This state of affairs demands imme-
diate attention.