The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-11-29
CARE OF CITY FUNDS.
Charter Provision to Regulate
the Banking System.
: MEASURE OF SANITATION.


sANk kVyISxuH Cemm1y&6S utSekfnx
last night vas attended by Thomas +.
Drsw. Who presided. and By NsssrA George
Donworth, W. 7. Scott, C. A Cram. DR..
Crchton and DR.. J. Eugene Jordan.
eompfroiler Carson. ex-Judge w. d. Wood
ana Polies Commissioners Waiiingford
wers among the visitors. The order Of
onsiness was consideration Of IN amend
ment providing that depositories of city
money shall pay interest on balances. and
that the privilege Of banking city money
should be put mp for bidding. The propo-
sifton. which 10 one Of the most important
submitted. was prepared BY Dr.. crichton,
and 10 ~ follows:
"It shall be the duty Of the city clerk,
upon the frst Tuesday In April in each
year. or - soon thereafter q practicable.
20 cause notice to be given By public adj
newspaper or newspapers Of the city of Sc
sttis that sealed proposals viii b received
from any bank OF deposit In the city Of
Seattle - 10 the terms and conditions
upon which they will receive and diseurss
the public moneys Of aaid city. The time
ceivsd shall s. specs6ed In The notice. The
proposals 10 be made shall specify the rate
OF interest psr month. estimated upon the
daily balances, that will be allowed upon
such deposits OF public moneys. The pro-
posals shall also in addition specify the
rate Of interest sstimated on time deposits
Of three (3h six t6) and nine co. months
that Will b allowed upon such deposits Of
public moneys.
The four banks Offering the highest rate
Of interest shall BE- appointed the city de-
posttoriee, and shall receive deposits in the
following ratio: The hank offering the
highest rate Of interest shall receive 40 per
cent. OF oil deposits: the bank Offering the
next highest bid shall receive 80 per cent:
csive 20 per cent. the bank offering next
highest shall receive 10 Der cent In case
there shall b . tie bid in any instance the
matter shall be decided by lot. and the
bank losing shall BE- considered the next
highest bidder. No bank shall b. allowed
70 bid not having capital stock Of $780,
GO paid up The city council hersOy re.
ali bida The council shall thersupon
cause . contract In writing to be
drawn mp. and providing for the
proper payment Of all warrants drawn
upon the city treasurer. 80 long as there Is
sufficient money In the fund upon which
such warrant i drawn. and enough money
20 the credit Of said city on deposit in said
banks to pay the same: and providing also
for the full accounting Of eli moneys %
deposited and the repayment Of the bal
ance on deposit ct the end of the term for
which said contract shall be made to the
city treasurer or other person authorized
~ the council to demand and receive the
same. The council shall have the power
to require such other provisions to be in
serted In such contract ~ IL shall deem
best for the interests Of said city. The
treasurer shall - near - practicable pre-
serve the ratio Of per cent II drawing ont
moneys that II established by this section.
''The repositories thus selected shall
give bond with two or moro sureties, in
as the council may require. conditioned
for the faithful keeping and proper dis
burssmsnt cf al such moneys; said bond
to BE- approved by Upon approval
OF such bond and the signing Of such con-
tract the council shall direct the city
treasurer to deposit each day (when said
banks are open for business) with the
said city by him collected or received. For
each such deposit the treasurer shall take
tho receipt Of the banks, and from and
after the deposit Of such moneys In said
banks the treasurer and his bondsmen
shall no longer b liable therefor. The
proper officers Of the bank being
the successful bidder shall fur
nish to the city comptroller
a statement of the daily balances and any
other information he may request in rela-
ton to the city business. Should the city
treasurer refuse or neglect at any time to
comply with the orders Of the city coun-
Gil as to the deposit OF such moneys, he
shall DO liable upon his official bond, in
an action brought thereon, BY and in the
name Of said corporation. FOR the full
amount OF the interest which the city
should have received upon such moneys
during such time as he shall retain the
possession OF such moneys. or he may be
proceeded against by said corporation In
its own name by mandate brought against
BILE thereto, to compel such deposits 70 be
made"
Mr.. Donworth said the city had Just
gone through crisis, and some precau-
tionary measure was manifestly necessary.
adopting 90 radical . proposition. He
would as soon trust . bank without .
bond ~ with one; the result OF this meas
ure would be that the bank Of least re-
sponsibility would probably be the highest
bidder. The city would have plenty OF
bonds, but they already had the experience
OF having plenty Of bonds but no money.
lie thought il would be very undesirable
to have the city so situated that the banks
coaid through . taxpayer mandamus the
treasurer to put the money in certain
hanks. He suggested that the city council
might designate certain eepositories in
which shs treasurer should be compelled
70 place the city money.
Alderman Jordan said that since the
hanks we're willing TO pay q commission
Why not the city have il instead OF the
treasurer He understood that money
was worth something. He believed IL
would be good plan to put picket
fence around the treasurer.
DR.. Criehton defended his measure A.
step in the right direction, and mentioned
Minneapolis. Denver. Hartford and Los
Angeles IS having adopted his plan He
believed the people would insist upon the
banks paying for the use of the city
money. One Of the banks had offered 10
pay as high ss per cent on daily balances.
W. T. Scott considered is . very ira
poFtsnt amendment, but he favored leav-
ing the city council some discretion In the
selection Of the banks. One objection he
saw Was that if the proposed plan we're
adopted no prosecution could follow The
treasurer would not be liable: the banks
could be proceeded against ctvIlly, bat no
criminal prosecutions could be had. Ex.
perience hsd taught that individual pun
ishmens vas tie best penalty for embes.
xiing pablo money. He had no doubt
that IL they could be rays sure Of four per-
fectiy safe banks IL might be . good thing,
bat abe people could be quite sure the
bank Of least responsibility would Offer the
highest interest
Comptroller Carson only saw one GOOD
feature In II and that wa the intsress an