The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-09-04
PURCHASE OF STATE WARRANTS.
A Good Investment for the L ornament
school Fund.

Olympia. Sept Especial some time
since the state land commission author
ized the investment Of SSA,oa0 OF the per-
nanent school fund in state warrants. as
WAS provided BY act OF the last legisla-
ture. This measure was regarded by all
as a wise one. inasmuch as 10 insureS
per cent. interest on the amount invested.
which is much better terms than could
be secured by the purchase OF bonds Up
on the determination Of the commission
10 invest SS0.09 warrants. when issued
BY the state auditor in payment OF SAL
aries and various other kinds OF indebt
sdness incurred by The state. were turned
over 10 the state land commissioner. who
was authorized 20 receive them on behalf
OF the state and hold them in trust for
the school fund. The commissioner in
turn certified the fact of such receipt and
the amount 10 the state treasurer, who
drew a check for the sum and the par
ticular amount for which the original war
rant was drawn was paid In cash This
is a very plain business transaction ny
which the state PAYS 100 cents on the
dollar OF its Indebtedness and is just eN-
aCtiy what IL promises to pay. But \
Popullst east Of the mountains. who. like
all of his kind. is ever ready 10 suspect
dishonesty where none exists. has. or at
least thinks he has. discovered a mare
nest. and Immediately flies into print and
strives 10 give the impression that State
Auditor Grimes is working the warrant
business 10 his own personal benefit. This
Spokane man arrives at the conclusion
that inasmach as state warrants com
mand a premium OF per cent that the
auditor takes the benefit Of the premium
and pays the states creditors in cash
dollar Tor dollar.
This theory. which was conceived in tx
n0rance, or else published maliciously. Is
misleading and unjust. The state Of
n 81 a a
receive AL the benefit there is derived
from the investment OF the per-
manen school fund in state warrants
and as this Is the particular fund IN which
the people at large are most interested.
ii is hard 10 conceive how a good citizen
with the welfare Of the state AZ heart
can consistently attack this method OF the
investment OF public funds for tho few
paltry cents IL might net the individual
10 receive the warrant instead Of the cash,
much less n - uniuStly attack the acts
of a state official who Is acting in the line
Of his official duty and would not be per-
sonally benefited one cent even were the
warrants 20 command the per cent. pre-
MUM the Spokane reformer claims. which
they do not Further, as matter of fact.
at the time that the state commenced the
purchase of warrants they did not COM
mand a premium
Following is the copy Of a circular letter
prepared by the governors private secrc-
tary at the time the purchase OF warrants
was contemplated. which was intended 20
fully inform state employees and Others or
the course the state had adopted:
AT the present time there is a large
amount OF money in the permanent school
fund which is uninvested. il is the earn
est desire OF the governor and tho board
of state land commissioners that this fund
be invested as far as possible in state war
rants, as provided by the law enacted by
the last legislature 20 the end that the
fund may not continue uuproductive. The
governor therefore requests that here
after warrants issued i'm payment Of all
expenses including pay roll OF your insti-
tuition shall be diverted 20 the permanent
school fund. Drafts will he sent you in
lien Of warrants. The details and meth
od Of procedure will be prescribed by the
state auditor hereafter"