The courier. (Lincoln, Neb.) 1894-1903, 1897-01-09

Of disposing of the states business pu,
an additional burden upon the taxpay-
ers by the accumulation of a large
amount Of interest on the unredeemed
warrants thus neglected. IL also en-
dangers the states interests through
the possibility of losses Of money which
could properly have been disbursed In
cancelling this Indebtedness as rapidly
as Possible. The suggestion that the
state is receiving interest on the money
thus allowed to accumulate in this I'M
usual manner may properly be met
with the statement that such interest
is only at the rate of three per cent per
annum. while the states warrants are
drawing five per cent. IL may further
be said that IL Is the duty of the state,
through its representatives., to liquidate
its Indebtedness as rapidly as funds
accumulate I'm the collection Of reve-
nues for that purpose and thereby en-
HANGING the value of its own obliga-
tons. Likewise. II the suggestion that
IL has teen a critical period for the
banks OF the state. as well as for bust
ness interests of all kinds, il can be
replied that the state Is under no obli-
cations. and that In fact. 1t is a perni-
cious doctrine to hold that the public
revenues may be used for the purpose
Of strengthening any private interests
or enterprises of any character, and es-
pecially so where there are superior
claims against such funds upon the
part of the creditors OF the state. The
state is not supposed to use its reve-
nues for the purpose Of entering into the
banking business or to deposit its funds
upon any other theory than that they
are to be used by the depository only
when not required by the state in the
ordinary course of its business 1t is to
be further observed that this fund at
one time was within reasonable limits
not exceeding, according to the report
or the state treasurer on the first of
January last the sum of $50 1851 I'm
der no process of reasoning can under
stand why this further and larger sum
should be deposited and allowed to ac-
cumulate to the enormous amount men,
toned with obligations of the state
pressing for payment and the value of
It's obligations constantly depreciating,
and then, after such large accumula-
tons are permitted. to have the matter
explained by the suggestion that these
funds could not, with safety to the
business interests of the state, be with
drawn from the repositories
i am of the opinion that there should
be a very radical change inaugurated
in the conduct Of the financial interests
Of the state and prompt measures TAX
en- to place the states finances upon a
solid footing, as much so at least as
inc
accumulated general fund should be
promptly applied to the extinguishment
N the Indebtedness against it, Whether
there are legal obstacles which would
prevent your refunding the indebted
ness above mentioned contracted prior
TO the adoption of the present constitu-
ton, am unable to speak advisedly.
If it could be done. i would suggest the
abvisability of refunding all the bond
I'd Indebtedness of the state at a rate
Of interest not exceeding four percent
per annum. The issue of such bonds
would make a very desirable invest
nent for the idle perm amt school fund.
This would permit the transfer of the
sinking fund accumulated and created
for the eXtinguishment of this bonded
to the general fund In
addition TO this you will have the DOW
er, as / view il. to authorize the issu-
ince OF bonds in the sum of 500 900 to
meet part of this indebtedness. Pro-
Visions of this character would reduce
the amount of outstanding warrants
very materially and place the state in
/ much better condition.
There are a number OF other funds Of
smaller amounts which perhaps can be
utilized in bringing the state nearer
cash basis in the transaction of its
business. / trust that after a full con-
liberation of this important matter you
nay be able. by the adoption of some
plan, to make satisfactory arrange
nents for promptly meeting all of the
tate's Indebtedness. both bonded and
iCating