The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-11-23
PUBLIC FUNDS.
A Condition of Affairs Which Calls
Upon the Legislature for Remedy.

To the Editor of the indianapolis Journal:
Recent adjudication of the law governing
the control of public funds requires that
the incoming Legislature shall give the peo-
pie some relief. Under our laws any person
who is in any manner intrusted with the
collection, receipt, safe keeping, transfer or
disbursement Of any money, ETC.. belonging
to or under the control of any county, civil
school township, city or town in this
State who converts to his own use or to
the use of any other person. in any manner
whatsoever contrary to law, or uses by
way CT investment in any kind of property.
or loans, either with or without interest
or deposits with any person contrary to
law, or exchanges for other funds any por-
ton OF such money, etc., is guilty of en-
bezzlement, and upon conviction thereof
shall be imprisoned in the State prison not
more than twenty-one years nor less than
two years and fined not exceeding double
the money or property embezzled and dis
franchised, etc. (Sec. 2O1s Revised Statutes.
1S94)
This provision of the law renders any
county treasurer, city treasurer township
trustee or other public officer having the
control of public funds guilty Of embezzle-
ment If he shall loan the money or invest
it or otherwise appropriate it to his own
use or to the use of another. and fixes a
heavy penalty therefor. Notwithstanding
this enactment and the StrictneSS Of these
criminal statutes it is an open and noto-
rious fact that every county treasurer in
the State OF Indiana is now, and has for
years past, been loaning all the available
funds that came into his hands, and the
same is true of township trustees city and
town treaSurers, and 1t rs but fair TO say
that the custom has become so firmly es-
tabiShed throughout our State that the sal
aries and compensations of these various
officers have been fixed by the Legislature
with view of the fact that they were ex-
pected to realize some money out Of loaning
the public funds. The right Of these off,
GERS to SO loan this money has never been
questioned by our courts until recent case
(No. Al Northeastern Reporter, page 334). i'm
which an action was brought on a note
in one Of the civil courts of the State. The
money sought to be recovered belonged to
the public FUND of the county. and that the
plaintiff at the time he loaned the money
was the treasurer of the county, and that
the money was not his. and that Ii had
been loaned in violation of "a criminal
statute. The Supreme Court in deciding
that case held that the plaintiff in loaning
the money in his hands as county treasurer
was guilty Of a felony. and that having
thus engaged in the commission of an act
made criminal by the laws OF the State the
treasurer was not in position to invoke
the same law to aid him in the recovery of
the money loaned. BY this decision the
his action. If of all the public funds loaned
in the State of Indiana the same defense
was made, these different municipalities
would largely be bankrupt, and the money
of the people collected in many cases by
OnerOuS taxes would be lost to the various
funds, and 1t IL only because of the good
faith Of the borrower that our public treas
uries in this State are not almost wholly
depleted. This Is not as II should be. We
should have some means of dispoSing of the
public money that it might be in circula-
ton, and that the people might have its
to would lock up in the State of Indiana al
most millions of dollars without enhancing
the value of the various funds and without
in any way better protecting the people.
What Legislation shall be enacted is a
question for the Legislature itself, but il
might not be prescriptions or improper to
suggest that Ii would be a prudent pro-
vision if the public funds, State, county
township and city, were let out annually to
the highest and best bidder on call at a
low rate Of interest, thus dispensing with
several officers who would be almost use
less were it not for the control of the funds
belonging to these various municipalities
is apparent that something should be done
Fiduciary officers should not be put in the
position OF either tying up the funds COM
ing into their hands or becoming felons if
they loan II out This brings up the ques-
ton of whether or not too much surplus
officers have the power, as they do in some
cases, to make a levy and hold and use the
funds there is constant temptation to
have the fund as large as possible. This
inducement TO overburden the taxpayers
should be removed. Is this matter not
worthy the attention of our law makers?
T.
TTnion City Ind Nov