The Superior times. [volume] (Superior, Wis.) 1870-1912, 1893-01-14

"nu "ioHS. lllaSmucn rs, pTacucally,
al 'uc currency now In circulation III the
country as money possesses the legal ten
der quality, the law ceased to be of much
importance. ManiteStly il was never in
tended to require the treasurer 10 pay out
inc identical coins or treasury notes or
tIt CON cert ilcateS received by him officially
IOT lne state, but only that he should not
receive good money INTO the treasury and
pay lne pubic creditors with deprecated
lulidS, II any such are in circulation. ANY
ojncf construction of these statutes would
ignore the reasons for their enactment,
ana, III our opinion, would lead to manifest
abSurdIty.
The construction of the term vaults of
the treasury in which the treasurer ia
required to keep the moneys of the state
as Their own vault or Snfe in the Office of
lhc state treasurer, Is too narrow, for it
ignores the customary and necessary proc
eSSeS universally employed in the conduct
OF business affairs, and the methods by
winch the business of the trcaSurerS Office
mas been conducted from Its first Organi-
ZauOn, and would work violent and nm
necessary change IN these methods, to the
great detrIment of public business and the
inconvenience and damage of public cred
llOrS. W are not aware of the existence
OF any conditions when that statute was
enacted which called for such extreme
remedy. Further than this, "mOney' is
generic term and may mean any
legal tender, coin and currency.
medium OF any instruments or tokens in
general use IN the commercial world as
representatives, of value. 1t includes
whatever Is lawfully and actually current
III commercial transactions as the equ!va-
lent of legal tender coin and currency.
We conclude there Is nothing in Section
l59 which rendered it unlawful for Treas
urcr McFetrldge to make the deposits in
question. The treasurer alone has no au-
tnorIty to make any investment Of public
funds. The deposits in question were
made by McFetndge from any and all
funds IN the treasury indiscrlminately. al
though, presumably, his books showed
what amount of each fund was thus
deposited. Such deposits were made with
out the approval or concurrence Of either of
his associate commissioners of the public
lands or the governor. If these deposits
We're instruments within the meaning of
the statutes, they were unlawfully made,
but we are Of the opinion that In making
the deposits In question MCfctrldgc did
not invest the state funds, and hence that
he did not thereby violate the statutes
which prohibited him from so dong. 1t
was unlawful for him to Stipulate for pay
ment by the banks OF interest on such de
posts and receive such interest The
moneys, therefore, were not the fruits OF
an Illegal transaction, and the claim of the
defense that the state cannot claim the
fruits of illegal transaction without ratify-
ing the act Is no significant.
he treasurer may well be held liable,
absolutely, for all money of the state COM
ing to his hands, and be held liable a. lSo
for the interest on the deposits in question
Such absolute liability does n0t necessarily
eStOp the state to maintain that such inter
est was received by the treasurer by virtue
OF his office and belongs to his Office. 1t
has already been held herein that the pub
lie funds were lawfully deposited by
Treasurer McFetridgc with the banks, ana
that he lawfully received from such
banks compensation by way of interest
Tor the use of such deposits Under these
circumstances. and III the absence of Il
statute separating the interest from the
fund and d!yertlng it 10 other uses. such
interest was an &ccretiCn or increment to
the fund, thus becoming part of it, and
logically and necessarily belongs to the
owner of the fund, to-wit: the state.
After discussion of the authorities
cited by the defense, the court comes
to the conclusion cited above. In the
Harshaw case, the court, by the same
justice, gives the following opinion:
There are two appeals in this acton, one
by the defendant. ,.licnTy b. llarShaw. ard
the other by all the remaining defendants.
Such appeals are from the judgment of the
circuit court. in favor OF the stare and
against the defendants. The defendant,
HarShaw, was state treasurer for the term
commencing on the first Monday IN
January. 1889, and ending on the first
Monday in January, 1871 The defendants,
sawyer. Hay, McMillen, Porter and
Hooper, together with Charles Il. CLARK.
now deceased, are the SurctleS in his
official bond as such treasurer. The action
Is to recover interest paid by banks on de
posts therein of the public fundsmadc by
Treasurer Ilarstaw, III his term of office.
1t is like the ease of the state VS.. Mcfet-
ridge and others, decided herewith. cX
ccpt that instead OF receiving the
interest on such deposits himself, Treas