The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-11-25
CITY FUNDS AS BANKING CAPITAL.

Impelled by a sense of duty to the
public. the Record-Union called atten-
ton to the fact that there remains a
constant balance in the city treasury of
about S233.000 Banking capital is
worth about s per cent per annum
The use of the cash balances of the
city treasury therefore is worth ap-
proximately S24, 900 per annum
Prompted by the same sense of duty,
the Record Union has called attention to
the fact that Notwithstanding the aver
age amount in the hands of the Treas
urer is 1923, 600, he is required to give
d bond in the sum of but $125,0 900.
Concerning the matter first men
toned herein, to-wit, the use of public
funds as banking capital, it should be
plain to the lowest intelligence that if the
use of the city's money for the pur-
poses of banking is legitimate and com
mendable, then the balances in the
State Treasury ought to be used for
banking purposes, and the balances in
the County Treasury should likewise
be used in the same way; or, to compass
the whole statement in a sentence, that
all public funds should be deposited
with bankers for the purpose of bank
ing, and that all balances remaining
In the public treasures, National,
State, county and municipal, should be
held for the personal and individual
profit Of banking corporations.
There is no man, not directly inter
ested in the use of public funds in this
way, who would like to manifest the
kind of stupidity which the advocacy
of such a measure would disclose
There is no citizen of Sacramento, I'M
less he is interested in the use of the
city's funds as banking capital, who
does not believe that the Record Union
Is right No man will be found bold
enough to stultifY his intelligence by
declaring that he believes the use of
public funds for banking capital to be
a judicious use; nor will he contend
that that policy will result in anything
else than disaster to the bank using the
funds, or to the public whose funds are
thus missapplied.
Concerning the second-the mad
equacy of the Treasurer's bond
we make bold to say that the
policy Of asking a bond at all
when 1t is grossly inadequate is
about as absurd as any piece of malad-
rinistration of which this or any other
city has been guilty. The bond Of
the custodian of public funds should
be equal to the maximum amount to be
placed in his custody. Here is a bond
but little in excess of 80 per cent. of
fhe average volume Of city money in
his hands.
One would naturally have supposed
that the bare suggestion of these things
would have found unanimous response
at the hands Of the people Of Sacra-
mento, and favorable consideration, at
least, at the hands of those who have
charge Of the city government. So far
from this being the case, there is at
least a set of men who have proposed to
punish the Record-Union for its temer-
ity in calling attention to this very
necessary public reform. We have pre-
sented these matters with the most per-
feet candor, without heat and without
opposition to any bank. We are indif-
ferent as to the personality involved
in this case We are Indifferent as to
what bank shall practice this misera-
Bile piece of peculation with public
funds. Whatever bank does it will
prove that its managers are not pub
,ic-spirited, but prefer their private in
terests to the public welfare.
we have clearly demonstrated to the
Trustees of the city and the citizens OF
the municipality the fact that they
have a Treasurer who is mere puppet
of somebody elsa jumping jack re-
snonding to the strong pull of other