The record-union., 1895-12-14
USING PUBLIC MoNEY-A WISE
ORDER.


Three things have combined to bring
about an order by the State Bank Com
missioners which will have an impor-
tant influence upon the conduct of the
treasures of the counties and cities in
this State. First, the outrageous NAL
administration of the public funds at
Tacoma, whereby the treasures Of the
city and county were farIned out with
out interest to a lot of banks, the most
of which having little other capital, and
failing when called upon to show the
public funds. left the community Of
Tacoma a hopeless loser to the tune OF
many thousand dollars.
Secondly, the Record Unions viger-
Gus and persistent protest against the
use of public funds as private banking
capital in defiance of the law. This pro-
test the Record Union uttered two
years ago when it pointed out the ne
cessity for the safe keeping of public
funds committed to Treasures. Again
lately, when it revived the subject and
quickened public attention upon it,
Thirdly, the singularly illogical and faul-
ty not to say outrageous decision Of the
Superior Court Of Sonoma County,
which decided that duty is fully done
when there is exhibited to the County
Examiners certificates of special de-
posit of the public funds in three or
four banks, and also that the examiners
have no standing in court when they
ask for an order compelling the Treas
urer to exhibit to them for counting
the actual money of the treasury, and
not merely bits of paper certifying that
it is somewhere else.
The Record-Union was very prompt
to take up that decision and point out
Its faulty reasoning and its dangerous
character and to denounce it as pub
lie outrage, as it unquestionably is.
since it amounts to a license until re-
versed, for the bankers of Sonoma
County to do business on the money of
of interest for the use of it. Some, in
deed many Of our contemporaries, ap
proved the decision Of the court. though
1t was purely technical, narrowly and
viciousIy so, and these same papers,
weFobserve, are usually loudest in their
complainings about the laws techni-
%Ia
Francisco Call, discovering the error
or its commendation of the decision,
has had the grace to correct itself, and
is now OF record as condemning the
Judgment arrived at by Judge Dough
erty.
Now comes the State Bank Commits
sioners and announce it is their inten-
ton to issue an order to all banks under
their Jurisdiction forbidding them to
receive public money Of any kind, ex-
cept as special deposits for safe keep
ing" and these must be actual 'spe-
Gals" so that at any moment, on de-
mand. the money deposited can be pro-
duced in kind, identically in the coin
and currency originally deposited.
1t Is not necessary to comment upon
the justice and manifest rightfulness
of such an order. 1t may be assailed
by. legal process. but we doubt it. That
the Bank Commissioners have the right
tomake such an order is unquestioned.
1t is simply condition which they
demand shall be complied with as a test
of solveney affecting their Judgment
to be formed at the time of examina-
ticn. No court is likely to undertake
to say that the Commissioners judg-
ment as to what is safe banking is re-
viewable in such case as this.
Some of the press uttered murmurs of
dissent against the protest made by the
Record Union. and some of these have
now expressed regret that the Bank
Commissioners propose to act as they
have decided to do. The reason for
this dissent is stated to be that locking