The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1895-12-10

count by the examiners lot OF paper
as evidences of deposit OF course it
will be said that the court strictly fol-
lowed the statute, and that it leaves
the examiners or any citizen to pro-
coed against the Treasurer for not hav-
ing the money in the treasury for manual
counting by the examiners. But sup
pose some one proceeds against the
Treasurer before the same court, and
that he answers that under the law he
has placed the money on special deposit,
and produces in proof non-negotiable
receipts showing that he has done so,
will not the court, pursuing the same
line of reasoning, say that he has COM
piled with the law and shall there
fore go hence without day? Certainly
such ruling would be as logical as the
one now made.
But the spirit of the law would be
defeated Just the same The purpose
of the law is not only to have examina-
ton show the condition of the treasury,
but whether the money of the people is
actually in hand, is capable of manual
delivery at any moment when it may
be lawfully drawn upon. The court
should have said: when the law di-
reefs that the Examiners shall count
the money, it means that they shall
count all the monev of the county of
all kinds, and not receipts of deposit"
which are not money, but simply evil
dences that the county money is
somewhere else than in the treasury
These certificates or receipts cannot be
construed to be money, because they
may be controverted, be shown to be
false, or forged, or to misreport the
facts. In fact, they invite to con-
spiracy.
We have the example of Tacoma be-
fore US, where precisely the same tao
tics were tried that have been played
so successfully in Sonoma County. In
Tacoma the whole of the city and
county money was put into nearly
dozen banks, and then began a carnl-
val of corruption and extravaganza.
Some of these institutions were actu-
ally formed for the sole purpose OF US
! ing the taxpayers money as banking
capital. The result was that Tacoma
! lost her money, or the most OF 1t by the
collapse of the banks, and this collapse
was fastened by the shrewd action OF
the Tacoma examiners. They assem-
bled to count the county money and
demanded its production. 1t was at
tempted to have certificates of deposit
serve the purposes of counting. But
the examiners were relentless and
compelled the banks to produce the
coin This they did under great stress
UP to certain amount, confidently ex-
pecting that when the count was over
the funds would be returned, and the
banks that had been driven to borrow
and beg to meet the demand would be
able to go with business again as Of old
on the peoples money. But when the
examiners had corralled all that was
possible of the actual coin they put it
under guard, refusing to permit it to
be redeposited. Then came the collapse,
and to-day the city of Tacoma and to
a certain extent the county mourn for
lost coin in an enormous amount, and
have only the assets of two-thirds of
dozen of broken and insolvent concerns,
and the remains of the business of
lot of tricksters who were banking and
speculating upon the capital Of tax
payers.
It may be safely asserted that no
sensible business man would conduct
private business as counties are doing,
| which place the peoples money in
banks to be used as private banking
capital. No bank desires possession of
county money except to use it in pro-
motion of it's private business. 1t fol-
| lows that banks must necessarily cor
rupt County Treasures when this is
permitted All the protestations that
can be made this side of purgatory
will fail to convince any sensible man
to the contrary. A special deposit is
not only of no earthly value to bank,
but is an actual hindrance and disad
vantage. The only use bankers have
for money is to use it; to make one dol
lar serve two masters.
1t has been openly argued that to
lock up county funds in treasury vaults
| is to withdraw from circulation a large
sum of money, but to permit banks to
handle the money is a great convent
ence to business men. who have to be
accommodated in order to carry over
| farmer debtors and others. But those
who advance this argument shut their
eyes tightly to the plain fact that any
use whatever OF county funds for pri-
vate convenience is nothing less than
/ embezzlement. There is no other term
that will fit the case.
The law does not contemplate the col
lection of taxes for use as capital by
business men. 1t in so many words
| REQUIRES the Treasurer to safely keep
and be ready at any moment to produce
the whole of the county money prop
erly charged against him upon the Aud
itor's books. Whenever he is unable TO
do this; if at any time he cannot or
will not produce the actual money in