Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-05-13
A NOVEL QUESTION.
Can States Be Made to Refund Cash
Received in 1892.
Uncle Sam Was Then Rich and Divided $26,
100000 Among Them.

Washington May IA very interest
ing question has been raised whether, In
view of the depleted condition OF the
treasury, the 20 states Of the Union wnich
in 1887 received from the general govern
ment deposits amounting to over $ss,ooo-
coo could not be made to refund. Early In
1885, congress having refused to extend
the charter of the bank Of the United
States found the government in possession
of between $40,OOO,OOO and $5O,OOO,OOO, for
which it had no present need or suitable
place for safe keeping. On June % OF
That year an act was passed authorizing
the secretary of the treasury to deposit
under certain specified conditions all Of
this money save $5,0OO,0O0 with the states
on their assuming the obligation of pay
ment on demand.
Section ID of the act reads as follows:
"And be it further enacted that the money
which shall be in the treasury of the United
States on the first day of January, 1887, re-
serving the sum of $5,000,0O0, shall be de-
posted with such of the several states, in
proportion to their respective representa-
ton in the senate and house of representa-
tives of the United States Us shall by law
authorize their treaSurers or other COM
petent authorities to receive the same on
the terms hereinafter specified; and the
secretary of the treasury shall deliver the
same to such treasurers or other competent
authorities on receiving certificate of the
deposit therefor signed, ETC.,
which certificates shall express the usual
and logical obligation and pledge the faith
of the state for the safe keeping and repay
ment thereof and every part thereof, and
shall pledge the faith of the states receiv-
ing the same whenever the same
shall be required by the secretary of the
treasury"
Section IA provided that the deposits
should be made on the first day of January,
April, July and October, 1887. Only tho
three first deposits, however, Were made,
that of Oct. having been withheld.
Where the Money Went.
Three deposits We're actually made and
the sum of money which each of the 26
states received is stated in several annual
reports of the treasury to have been as fol
lows Gents ommitted): Maine, 1856, 1913;
New Hampshire, $669,OS6; Vermont, $685.
OS6; Massachusetts,, 81 1888, 1873; Connecticut,
$40, 100; Rhode Island, $3S2, 1886; New
York, $4,0l4,520; Pennsylvania, T., S67 ,514;
New Jersey, s764670; Ohio, 5000, 300; In
diana, $S60,254; Illinois, $477,919 Michi.
gan, $2s6,f51; Delaware, 1886, 1853; Mary
land, 1906, 1853; Virginia, e, 1893, 427; North
Carolina, Sl,433,757; South Carolina.
81 ,O5l ,422; Georgia, 81, O51 ,422; Alabama,
$669,0S6; Louisiana, $477,9l9; Mississippi,
$685., 1886; Tennessee, $1,433, 757 Kentucky,
81 ,433, 757; Missouri, $3S2, 1856; Arkansas,
$2S6, Isl. Total SOS, 101 1888.
In his annual report for 1895, the United
States treasurer says: 1.-The fiction that
these deposits, amounting to SIS, 101, 635,
may some day become available, has now
ceased to be held. 1t is very singular
fact that the records of the treasury de-
partment do not show that any demand
has ever been made on the states for the
repayment of this money. 1t seems to be
the general opinion that an act of congress
would be necessary before steps could be
taken to compel a repayment, but whether
such an act will be passed through CON
gress is extremely doubtful, in view of the
fact that the representatives of the 20
states in both houses would be interested
In its defeat"