Omaha daily bee., 1896-12-12
STATE FUNDS ARE TIED UP
Floating Indebtedness Increases While the
Cash Lies in the Banks.
TREASURER BARTLEYS PLAIN STATEMENT
Money belonging TO tho General FunS
Cannot lie Touched Mt Present
pnd school Fund Cash is
Sacred.

LINCOLN, Dec. 11.-(Speclal)-ovcr ST.,
900, 900 OF state general fund warrants are
outstanding, while nearly s6CO, 600 is supposed
TO be in the hands of the state treasurer
to the credit of the general fund. Tho
Sl,9O0,000 warrants are drawing interest at
5 per cent for their holders, while the state
is at best getting per cent on the 100000
which is on deposit in different state de-
positories. This is the showing which will
be made when the report of the state treas
urer is given to the governor and by him
transmitted to the Legislature. 1t shows
condition of the state finances which Will
require the immediate attention OF the leg
isature and tax to the utmost the ingenu-
ity Of the legislative 1nancers
When asked what these figures mean.
State Treasurer BARLEY has replied that
they mean exactly what they show on their
face. They mean" he Gays, that while
there is nearly S600,O 600 on hand in the
general fund, 1t is on deposit with banks,
from whom the money cannot be drawn
with safety. The showing will go into the
members of the legislature just that way,
and IL the members wish to take the re-
sponsibility of ordering the money drawn
out of these banks It will rest with them
to do So
IL seems tnat tnlS COuulllOH VI lue Seu-
eral fund is presented for the first time
in the history of the state Four years
ago, on November 30, 1892, the balance
In the general fund was SIG, o. Two
years later, on November 30, 1894, the ball
ance in the general fund was SSO9l96o.
This year the balance has mounted to the
enormous figure OF $3.50 900 Two years ago,
when the state treasurer made his last
biennial report, there were outstanding
total liabilities against the balance in the
general fund warrants to the amount OF
$577, ,S25.75. This year they have increased
to the colossal figure of over $4,000 600,
or over three times what they were two
years ago.
WAS THEN TOO SANGUINE.
In the light of these figures the statement
made by Treasurer BARLEY in his last res
port is extremely interesting. In that re-
port he says:
1.-The general fund which has been strug-
Cling with a floating debt of $637 3S3 in
creased greatly by excessive appropriations
in 1891, and having no relief in corre-
spending increase in levy of taxes. being the
same as 1t was, /. e., mills, has received
material aid from the Hospital for Insane
fund and from miscellaneous receipts from
state officers ices. United States aid for tho
Nebraska Soldiers and Sailors home etc,
to the amount of $l50000, which, together
with the collection by counties of delinquent
state taxes, will no doubt, clear this fund
from this indebtedness within n few months.
! base my calculations on the small appro-
priations OF 1893, and the increased valuation
of property as detailed on the assessment
rolls of the state, which amounts as levied
for taxes to about the sums appropriated. I
am almost confident that the debt will be
wiped out In June. 1885,
Treasurer Bartleys confidence that the
floating debt of the state would be wiped out
by June, 1895, does not seem to have been
justified in the light OF more recent events.
Instead OF being wiped out, that debt seems
to have increased between three and four
fold. And that Notwithstanding the fact that
for good part of IL there is money in the
treasury which should have been paid out
to meet outstanding obligations.
These disclosures are not the only ones
which will demand the attention OF the state
legislature. The condition of the permanent
school and university funds will also require
consideration. The amount of uninvested
money in the permanent school fund is sup
posed to be at present about $40 900 This
money has been kept in the possession OF
the state treasurer, separate from the cur
rent funds deposited in depository banks and
held by him as subject to his own discretion
in the matter of deposting 1t. The state
treasurer has always refused to tell where
this school money is, maintaining that he
alone is responsible for its safekeeping.
whether this money or any part OF il Ia
also in banks on which 1t is not safe to draw
has not yet been disclosed.
ACCUMULATION OF THE FUND.
ino SSeIo ago lutTe was only SllI ,3l3.b1
In the permanent school fund, and IL was
expected at that time that this money would
De invested under the law in interest-bear-
ing, registered state warrants. This warrant
registration law went into effect August l,
1881, and there were registered under 1t up
to November 30, 1894, $3,449 ,4S2.42. in war
rants, OF which amount So 902 POI. "a had
Deen redeemed Since this report was made,
however, instead of continuing the invest
ment OF these funds in interest-bearng state
warrants, under ruling of the attorney
general, the practice has been stopped and
the money accumulated In the hands of the
state treasurer. For that reason the bal
ance In the permanent school fund is larger
now than 1t was two years ago.
The same situation presents itself in the
matter OF the permanent university fund.
Of this fund there is more uninvestcd money
than invested money, and the uninvested
portion amounts TO something like $50 900,
the interest on which has been lost to the
university under the existing management OF
the fund. In the estimates of the university
regents for the ensuing biennum this
money is relied upon as supplying one OF
the resources to the extent OF the full
amount of the interest at the rate OF per
cent If this Is to be realized the money
Will have TO be invested, either In registered
state warrants, or in the other securities
provided by law, and to invest it 1t will
have to be drawn out Of the banks In which
1t Is at present deposited
1t is expected that the treasurers report
will show that he has in his possession
between 81 500 900 and 81 600, 900 OF current
funds which. added to the $40 600 OF school
money, Will make grand total approxi-
mating 81, 600, 900. or course from this
must be deducted the s23G 900 locked up in
the defunct Capital National bank. and the
other smaller sums which are held by other
failed banks This money, with the excep-
tion OF the school money above referred to-
is supposed to be on deposit In the state
depository banks.
LIST OF DEPOSITORY BANKS.
The banks which have given bonds, and
which have been designated as state de-
posltorles are: The American National,
Commercial National First National. Mer-
chants National, Nebraska National Ma
tional Bank OF Commerce Omaha National,
Union National and the United States Ma
tional of Omaha; the American Exchange
Capital National, and the Column
blan National OF Lincoln; the Adams
County. the First National. and the German
National of Hastings; the Buffalo County
National OF Kearney. the First National OF
Columbus, the First National OF Beatrice.
the First National OF Auburn, the First
National OF Crete, the Nebraska City Ma
tional OF Nebraska City, and the Saunders
County National OF Wahoo. or these
three namely: the Capital National OF
Lincoln, the Buffalo County National,
and The First National nf ReatrIra